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

Published: Aug 2024 163 Pages SKU: IRTNTR75499

Market Overview at a Glance

$88.4 B
Market Opportunity
30.41%
CAGR
22.26
YoY growth 2023-2024(%)

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?

Cannabinoids Market SizeRequest Free Sample

  • 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.

Cannabinoids Market Size

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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.

Cannabinoids Market Share by Geography

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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.

Cannabinoids Market Share by Geography

 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.

Market Scope

Report Coverage

Details

Page number

163

Base year

2023

Historic period

 2018-2022

Forecast period

2024-2028

Growth momentum & CAGR

Accelerate at a CAGR of 30.41%

Market Growth 2024-2028

USD 88.4 billion

Market structure

Fragmented

YoY growth 2023-2024(%)

22.26

Key countries

US, Canada, The Netherlands, Australia, and Germany

Competitive landscape

Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

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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

We can help! Our analysts can customize this market research report to meet your requirements.

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Table of Contents not available.

Research Methodology

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases

DATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts

REPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape

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Frequently Asked Questions

Cannabinoids market growth will increase by $ 88.4 bn during 2024-2028.

The Cannabinoids market is expected to grow at a CAGR of 30.41% during 2024-2028.

Cannabinoids market is segmented by Application( Medical, Non-medical) Channel( Retail pharmacies, Online stores, Hospital)

Aurora Cannabis Inc., 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. are a few of the key vendors in the Cannabinoids market.

North America will register the highest growth rate of 64% among the other regions. Therefore, the Cannabinoids market in North America is expected to garner significant business opportunities for the vendors during the forecast period.

US, Canada, The Netherlands, Australia, Germany

  • Legalization of medicinal cannabinoidsMedicinal cannabinoids account for a significant share of the global cannabinoids market. Many countries is the driving factor this market.
  • such as Australia is the driving factor this market.
  • Canada is the driving factor this market.
  • Chile is the driving factor this market.
  • Greece is the driving factor this market.
  • Israel is the driving factor this market.
  • Italy is the driving factor this market.
  • the Netherlands is the driving factor this market.
  • Peru is the driving factor this market.
  • and Uruguay is the driving factor this market.
  • have legalized the use of cannabinoids for medicinal purposes. In the provinces of the US where cannabinoids have been legalized is the driving factor this market.
  • consumers of cannabinoids are mostly aged 50 years and above. Owing to the increased risk of chronic diseases post 50 years of age as well as the effectiveness of cannabinoids in such conditions. This demographic profile is expected to boost the demand for cannabinoids in the US during the forecast period.In December 2022 is the driving factor this market.
  • the US government announced its Medical Cannabinoids and Cannabidiol Research Expansion Act is the driving factor this market.
  • also called the Cannabis Research Bill is the driving factor this market.
  • to establish a new is the driving factor this market.
  • separate registration process to facilitate research on cannabinoids. The Drug Enforcement Agency (DEA) must abide by the act regulations when registering professionals to conduct cannabinoid research and supply cannabinoids to such researchers. The growing demand for medical cannabinoids in Australia has encouraged government authorities to increase funding for research. As of February 2022 is the driving factor this market.
  • a total of 37 states is the driving factor this market.
  • such as the District of Columbia is the driving factor this market.
  • Guam is the driving factor this market.
  • Puerto Rico is the driving factor this market.
  • and the US Virgin Islands is the driving factor this market.
  • regulate cannabis for medical use by qualified individuals.In June 2022 is the driving factor this market.
  • Thailand legalized the cultivation of cannabinoids and their consumption in raw materials for foods and drinks. Thailand anticipated that by taking this action is the driving factor this market.
  • it would expand its agricultural and tourism sectors and enable the use of the plant for medical purposes. Regulations and control is the driving factor this market.
  • such as registration on the app called PlookGanja is the driving factor this market.
  • are mandatory to grow the plant. Government efforts for the legalization of cannabinoids are anticipated to accelerate the growth momentum of the market in focus during the forecast period. is the driving factor this market.

The Cannabinoids market vendors should focus on grabbing business opportunities from the Medical segment as it accounted for the largest market share in the base year.