Cannabinoids Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, The Netherlands, Australia, Germany - Size and Forecast 2024-2028

Cannabinoids Market Size 2024-2028

The cannabinoids market size is forecast to increase by USD 88.4 billion at a CAGR of 30.41% between 2023 and 2028.

• The market is experiencing significant growth due to the increasing recognition of cannabinoids' therapeutic potential in managing various health conditions. Key drivers include the legalization of medicinal cannabinoids and the launch of educational programs to raise awareness of their benefits. However, the market also faces challenges, such as the potential side effects associated with inappropriate use. Cannabinoids have shown promise in addressing inflammation, insomnia, cancer-related symptoms, and chronic pain. The immunological system and central nervous system are the primary targets for these compounds. As the use of cannabinoids, including marijuana and prescription drugs, becomes more widespread, it is crucial to understand their effects and proper application to maximize their benefits and minimize risks. The market's growth is expected to continue as research uncovers new applications and regulatory frameworks evolve to support their use.

What will be the Size of the Market During the Forecast Period?

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• The market is witnessing significant growth due to the increasing awareness and acceptance of cannabis-derived products for various health conditions. The market encompasses a range of products, including body lotions, oils, capsules, and vaping items, derived from the cannabis sativa plant, specifically hemp, and medical cannabis. Cannabinoids are chemical compounds found in the cannabis sativa plant. The most prominent cannabinoids include cannabidiol (CBD), cannabigerol (CBG), and tetrahydrocannabivarin (THCV). Among these, CBD has gained significant attention due to its potential therapeutic benefits.
• In addition, anxiety, seizures, muscle disorders, Parkinson's disease, chronic noncancer pain, cancer patients, neuropathy, vomiting, appetite, weight loss, and cancer progression are some of the conditions for which cannabinoids are being explored as potential treatments. The market is expected to continue its growth trajectory due to the increasing acceptance and legalization of medical cannabis and the growing body of scientific evidence supporting the therapeutic benefits of these compounds. However, it is essential to note that the regulatory landscape for these products is evolving, and it is crucial for companies to stay informed of the latest regulations and guidelines. In summary, the market in North America is experiencing steady growth due to the increasing demand for natural alternatives to synthetic products for managing various health conditions.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Medical
  • Non-medical
• Channel
  • Retail pharmacies
  • Online stores
  • Hospital
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
  • APAC
  • South America
  • Middle East and Africa

By Application Insights

• The medical segment is estimated to witness significant growth during the forecast period.

Medical cannabinoids derived from the Cannabis sativa plant, including Cannabidiol (CBD) and Tetrahydrocannabinol (THC), have emerged as potential alternatives to conventional pain management medications in the US. These compounds have shown efficacy in alleviating chronic non-cancer pain, particularly pain caused by nerve damage and inflammation. The increasing prevalence of chronic pain among adults in the country is a significant factor driving the growth of the market. Furthermore, medical cannabis testing and legalization in several states are fueling market expansion. In addition to pain relief, cannabinoids have demonstrated potential in treating conditions causing severe nausea, such as Crohn's disease, acute gastritis, hypoglycemia, panic disorder, and arachnoiditis.

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The medical segment was valued at USD 10.30 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• North America is estimated to contribute 64% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In North America, the legalization of cannabinoids for medical use in the United States and Canada is fueling market expansion. Notable companies providing cannabinoids in this region mimic the cannabinoid compounds naturally produced in the human body. When consumed, THC interacts with the brain's cannabinoid receptors. The use of medical cannabinoids is anticipated to reduce opioid consumption among patients dealing with chronic pain during the forecast period. Consequently, the increasing adoption of cannabinoids for managing chronic diseases in North America is propelling the growth of this market segment.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of the Cannabinoids Market?

The legalization of medicinal cannabinoids is the key driver of the market.

• The market encompasses a substantial segment of medicinal applications. Various countries, including Australia, Canada, Chile, Greece, Israel, Italy, the Netherlands, Peru, and Uruguay, have authorized the utilization of cannabinoids for medicinal purposes. In the US states where cannabinoids are legalized, the majority of consumers belong to the age group of 50 years and above.
• Furthermore, this demographic trend is attributed to the prevalence of chronic diseases among this age group and the therapeutic benefits of cannabinoids in managing such conditions. The US government passed the Medical Cannabinoids and Cannabidiol Research Expansion Act, also known as the Cannabis Research Bill, in December 2022, to facilitate research on cannabinoids by establishing a new registration process. This legislation is expected to fuel the demand for cannabinoids in the US market during the forecast period.

What are the market trends shaping the Cannabinoids Market?

The launch of medical cannabinoid education programs is the upcoming trend in the market.

• Medical cannabinoids have gained significant attention in various countries, including the United States, Canada, Colombia, Germany, and Greece, due to their therapeutic benefits for inflammation, sleep disorders, cancer-related symptoms, and chronic pain.
• Consequently, the establishment of dispensaries providing medical cannabinoids has been on the rise. To cater to this growing demand, educational institutions are offering programs to educate individuals about the uses and applications of medical cannabinoids.

What challenges does the Cannabinoids Market face during its growth?

Side effects associated with the inappropriate use of medical cannabinoids is a key challenge affecting the market growth.

• Medical cannabinoids, derived from the cannabis sativa plant, contain various active compounds, including Cannabinol (CBN) and Cannabidiolic Acid (CBDA. THC is the most prominent cannabinoid, known for its psychoactive effects. However, CBD is gaining popularity due to its potential therapeutic benefits. The concentration of THC in medical cannabinoids can fluctuate depending on cultivation, preparation, and storage methods.

• Furthermore, these substances contain numerous other chemicals, whose quantities can differ from plant to plant. This variability complicates determining the appropriate dosage for patients. Therefore, it is crucial to consult a healthcare professional before using medical cannabinoids, taking into account any underlying health conditions and past substance use. In the realm of consumer products, cannabinoids are increasingly being integrated into cosmetics, food, and drinks, available as CBD oil and CBD isolate. These applications cater to a broad spectrum of illnesses, including nausea and pain relief.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Canopy Growth Corp.
• Cresco Labs LLC
• Cronos Group Inc.
• CV Sciences Inc.
• Delta 9 Cannabis
• Ecofibre Ltd.
• INDIVA.com LLC.
• Jazz Pharmaceuticals Plc
• Medical Marijuana Inc.
• MediPharm Labs Inc.
• Medix CBD
• Medterra CBD
• MM Enterprises USA LLC
• Organigram Holdings Inc.
• STENOCARE AS
• Terrascend Canada
• Tilray Brands Inc.
• Trulieve Cannabis Corp.
• Unrivaled Brands Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The market encompasses a range of phytocannabinoids, including cannabidiol (CBD), cannabigerol (CBG), and tetrahydrocannabivarin (THCV. These naturally occurring chemical compounds derived from the Cannabis sativa plant have gained significant attention due to their potential therapeutic benefits. CBD, a major non-psychoactive component, is widely used for managing anxiety, seizures, muscle disorders, and sleep disorders, among other illnesses. CBG and THCV exhibit potential in treating inflammation, pain, and neuroprotective effects. Cannabinoids are available in various forms such as body lotions, oils, capsules, and vaping items. The Farm Bill legalization in the US has led to an increase in the production and consumption of cannabinoids, particularly CBD oil and CBD isolate, in food and drinks, cosmetics, and alternative therapies.

However, synthetic cannabinoids and chemical compounds, often found in e-cigarettes and vaping products, have raised concerns regarding lung injury. It is essential to differentiate between natural phytocannabinoids and synthetic alternatives. Cannabinoids interact with the body's endocannabinoid system, which includes the immune system and central nervous system, playing a crucial role in managing chronic diseases such as cancer, chronic pain, neuropathy, and cancer treatment. Minor cannabinoids like cannabinol (CBN), cannabidiolic acid (CBDA), and cannabigerolic acid (CBGA) also offer potential benefits for stress & anxiety, neurological disorders, metabolic disorders, and diabetes. Cannabis sativa and hemp are primary sources of these medicinal phytocannabinoids, making them natural remedies for various health conditions. The legalization of medical cannabis and the ongoing research on cannabinoids continue to expand their applications and potential therapeutic benefits.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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