Medical Cannabis Market Size, Share & Trends Analysis Report By Product (Flowers, Concentrates, Edibles, Topical and Tinctures, Others), By Derivative (Cannabidiol (CBD), Tetrahydrocannabinol (THC)), By Route of Administration (Inhalation, Oral, Topical), By Applications (Pain Management, Neurological Health Management, Mental Health Management, Others), By Distribution Channel (Hospital Pharmacies, Retail Pharmacies, Online Pharmacies) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Medical Cannabis Market Size

The global medical cannabis market size was valued at USD 27.38 billion in 2024. It is projected to reach from USD 35.32 billion in 2025 to USD 101.22 billion by 2033, growing at a CAGR of 14.06% during the forecast period (2025-2033). 

Key drivers of the global market include the increasing legalization and regulatory support for cannabis use in various countries, rising patient demand for alternative therapies to manage chronic pain, epilepsy, and mental health disorders, and expanding research highlighting its therapeutic benefits. Moreover, growing investments from pharmaceutical companies and advancements in product development, such as cannabis-based oils, tinctures, and edibles, are further accelerating market growth by improving accessibility and offering diverse treatment options.

Furthermore, countries like Australia are leading the way in regulatory advancements, driving market growth in the Asia-Pacific region. For instance, Australia has seen a notable increase in medical cannabis production, rising from 16,700 kilograms in 2021 to 26,593 kilograms in 2023. This surge is fueled by strong government support, expanding patient access, and the growing acceptance of cannabis-based treatments, further boosting the medical cannabis market growth.

Source: Department of Health and Aged Care – Australian Government, Straits Research

Medical Cannabis Market Trends

Rise of Pharmaceutical-Grade Cannabis Products

The medical cannabis industry is advancing towards pharmaceutical-grade formulations to achieve precise dosing and comply with stringent regulatory standards, enhancing product consistency and safety.

For instance,

• Jazz Pharmaceuticals developed Epidiolex, a cannabis-derived medication for epilepsy, which gained FDA approval and has seen increased adoption worldwide.

• Companies like Tilray are advancing the industry by offering GMP-certified cannabis products, reflecting a shift towards highly standardized formulations.

Thus, as the cannabis industry evolves, the focus on pharmaceutical-grade products is expected to further integrate cannabis into mainstream medical practice, driving innovation and ensuring high-quality treatments.

Medical Cannabis Market Growth Factors

Global Legalization and Regulatory Reforms

The medical cannabis market is expanding rapidly as more countries and states across the world reform their cannabis laws to allow for medical use. For example, nations like Germany, Australia, and parts of Latin America have introduced comprehensive medical cannabis programs. These developments lead to increased accessibility for patients, the establishment of new industry standards, and the opening of previously untapped markets, all of which contribute to the overall expansion of the medical cannabis sector. The shift in the legal landscape is also prompting international trade, allowing companies to explore new markets and boost the availability of medical cannabis products globally.

Growing Recognition of Cannabis for Pain Management

The growing recognition of cannabis as an effective, non-addictive alternative for managing chronic pain is significantly shaping the medical cannabis industry, especially in response to the opioid crisis. Medical professionals and patients are increasingly prescribing cannabis to address various pain types, including neuropathic and inflammatory pain, offering a safer option compared to opioids.

For instance,

• In Canada, Aleafia Health has observed a notable increase in medical cannabis prescriptions, particularly for patients dealing with chronic pain conditions such as arthritis and cancer.

• In the U.S., Verilife has reported a steady rise in patient enrollments in medical cannabis programs focused on pain management.

Moreover, research supports this shift, showing that cannabis can effectively manage pain without the addiction risks associated with traditional opioids, thereby encouraging its wider use in clinical settings.

Market Restraining Factors

Limited Insurance Coverage

The lack of health insurance coverage for medical cannabis can make these treatments prohibitively expensive for patients, significantly limiting access and slowing their adoption, for instance.

• In the U.S., despite the legalization of medical cannabis in numerous states, most health insurance plans do not cover these treatments, resulting in high out-of-pocket costs that can deter patients from pursuing them.

• Similarly, in the UK, although medical cannabis was legalized in 2018, coverage through the National Health Service (NHS) remains limited, generally reserved for severe cases or specific conditions and requiring substantial clinical evidence for approval.

Thus, insurance companies and healthcare systems often avoid covering medical cannabis due to concerns about its efficacy and insufficient clinical data, which perpetuates high costs and limits patient access, slowing market adoption.

Market Opportunities

Adoption of Medical Cannabis in Standard Healthcare

The integration of medical cannabis into mainstream healthcare systems presents significant opportunities in the global market. Countries with advanced healthcare infrastructures are leading this shift, where healthcare professionals—doctors, pharmacists, and specialists—are actively involved in prescribing and monitoring cannabis-based treatments.

• For example, in Canada, medical cannabis is routinely prescribed by physicians and dispensed through licensed pharmacies, making it a part of standard medical care. Similarly, in Germany, medical cannabis is covered by national health insurance programs, reflecting its growing acceptance as a legitimate treatment option.

This trend is fueled by increasing awareness among healthcare providers about the therapeutic potential of cannabis in managing chronic pain, epilepsy, and other conditions. As medical professionals become more educated on its benefits, the adoption of medical cannabis into regular healthcare practices is expected to expand, offering new growth avenues for the global market.

Regional Insights

North America: Dominant region with 41.23% market share

North America held the largest share of the medical cannabis market, driven by several key factors. The region has a well-established regulatory framework that supports the legal use and commercialization of medical cannabis, with significant advancements in both federal and state-level legislation, particularly in the U.S. and Canada. The presence of a large patient population seeking alternative treatments for chronic conditions, such as pain and neurological disorders, further drives demand. Moreover, North America boasts a highly developed medical infrastructure, with numerous research institutions and pharmaceutical companies actively involved in cannabis-related research and product development.

Asia-Pacific: Rapid growth in China, Australia, and Thailand

The Asia Pacific region is projected to witness the fastest CAGR in the global market due to emerging legalization, increasing patient demand, and growing investment in research and healthcare infrastructure. Countries like Thailand and Australia are leading the way in regulatory advancements, which are propelling the market growth in the region.

Countries Insights

• US. – The medical cannabis industry in the U.S. is driven by widespread state-level legalization, which has created a large and diverse market for medical cannabis products.For instance, State-level legalization in 38 states, coupled with strong investments from major companies like Canopy Growth and Tilray, drives market expansion. The significant investment in research and development, coupled with strong patient demand for alternative treatments, further fuels market growth.Likewise, ongoing reforms and a growing acceptance of cannabis in mainstream medicine contribute to the market’s expansion.

• Canada– The Canadian market has seen notable growth, as evidenced by the 15% increase in individuals registered with Health Canada for personal and designated cannabis cultivation for medical purposes. Registrations rose from 13,672 in December 2023 to 15,726 in March 2024, highlighting the growing reliance on medical cannabis for personal healthcare needs. This rise reflects increased patient awareness, acceptance of medical cannabis as a viable treatment option, and the expanding accessibility of cannabis cultivation for therapeutic purposes in Canada.

• UK - The UK’s market is driven by progressive regulatory changes that allow for the prescription of cannabis-based products for specific conditions. The market is supported by increasing awareness and advocacy for cannabis as a legitimate medical treatment, as well as growing interest from pharmaceutical companies in developing new cannabis-based therapies.

• Germany- Germany’s market is significantly driven by comprehensive insurance coverage for medical cannabis, which makes it accessible to a large patient base. The country’s robust healthcare system and progressive regulatory environment facilitate market growth. Moreover, Germany's role as a major hub for cannabis research and production in Europe contributes to its European market expansion.

• Denmark- Denmark’s market is driven by its pilot program, which allows for the legal distribution of medical cannabis. The government’s commitment to evaluating the efficacy of cannabis in treating various medical conditions supports market development. Additionally, Denmark’s focus on creating a regulated market for medical cannabis fosters growth and investment.

• France- In France, the market for medical cannabis is influenced by recent regulatory shifts towards expanded access for patients with specific medical conditions. The ongoing trials and pilot programs, along with increasing patient advocacy and government support, are key driving factors. France's focus on evaluating the benefits of medical cannabis through controlled studies also supports market development.

• Spain- Spain’s market is influenced by ongoing regulatory developments and a growing interest in cannabis-based therapies. The country’s focus on increasing patient access and supporting clinical research into medical cannabis fuels market growth. Spain’s burgeoning industry and rising patient demand for alternative treatments also contribute to its market expansion.

• Australia - Australia’s market is expanding due to the national medical cannabis program that provides legal access for patients. The country’s supportive regulatory environment, along with increasing patient numbers and research initiatives, drive market growth. Moreover, Australia’s focus on developing a sustainable cannabis industry further supports market expansion.

• Brazil- Brazil’s medical cannabis industry is growing due to recent regulatory changes that allow for the use of medical cannabis for certain conditions. The country’s large population and rising demand for alternative therapies contribute to market growth. However, the market is still in its early stages and faces challenges related to regulatory and logistical barriers.

Segmentation Analysis

By Product

The global market is segmented into flowers, concentrates, edibles, topicals & tinctures, and others. The concentrates segment dominates the global medical cannabis market primarily due to their high potency and efficiency in delivering cannabinoids. Concentrates, such as oils, waxes, and extracts, offer a more concentrated form of cannabis that can provide stronger therapeutic effects with smaller doses, which is particularly beneficial for patients needing potent relief from chronic pain, severe nausea, or other serious conditions.

• For example, Canopy Growth Corporation offers Tweed cannabis concentrates, including their Tweed Live Resin. This product is a high-potency concentrate extracted using advanced techniques to preserve the full spectrum of cannabinoids and terpenes, providing patients with strong, fast-acting relief for conditions such as severe pain or nausea.

By Derivatives

The global market is bifurcated into cannabidiol and tetrahydrocannabinol. The cannabidiol (CBD) segment dominates the global medical cannabis industry primarily due to its non-psychoactive properties and broad therapeutic applications. CBD has also gained widespread acceptance and approval for various medical uses, contributing to its prominence in the market.

• For example, PureKana provides a range of CBD products, including their PureKana CBD Oil. This product is designed to offer therapeutic relief from various conditions such as anxiety, insomnia, and chronic pain, emphasizing the non-psychoactive nature of CBD and its effectiveness in improving the quality of life for patients.

By route of administration

The global market is bifurcated into inhalation, oral, and topical.The inhalation segment dominates the global medical cannabis industry primarily due to its rapid onset of effects and user preference for quick relief. Inhalation methods, such as smoking and vaporizing, allow cannabinoids to enter the bloodstream quickly through the lungs, providing near-instantaneous therapeutic effects. This immediate onset is particularly advantageous for conditions requiring fast relief, such as acute pain or severe nausea.

• For example, Aurora Cannabis Inc. offers Aurora Cloud vape pens, which provide a convenient and precise method for inhaling controlled doses of cannabinoids, and Aurora Pre-Rolls, which offer an easy, ready-to-use option for quick relief, catering to patients seeking immediate therapeutic effects.

By Application

The global market is segmented into pain management, neurological health management, mental health management, and others. The pain management segment dominates the medical cannabis industry owing to its effectiveness in alleviating chronic and acute pain, which is a major concern for many patients. Cannabis has been shown to help manage pain where traditional treatments may fall short, particularly for conditions such as neuropathic pain, arthritis, and cancer-related pain.

• For example, Charlotte's Web Holdings, Inc. offers medical cannabis products specifically designed for pain management, such as their Charlotte's Web CBD oil. This product is used by patients to manage chronic pain and inflammation, leveraging the therapeutic benefits of cannabinoids to provide relief and improve quality of life.

By distribution channels

The global market is segmented into hospital pharmacies, retail pharmacies, and online pharmacies. The hospital pharmacies segment dominates the market with the largest share owing to their crucial role in managing and dispensing cannabis-based medications for patients with severe or complex conditions. Moreover, hospital pharmacies often handle higher volumes of prescriptions for patients with chronic illnesses or cancer, who require more intensive pain management and symptom relief, thus contributing to the segment's leading position in the market.  

Company Market Share

Key players in the global market are pursuing strategic collaborations, acquisitions, and partnerships to enhance their product offerings and broaden their market reach. This approach helps improve patient access, expand market presence, and drive innovation within the medical cannabis industry.

Althea Group Holdings: An emerging provider in the medical cannabis industry

Althea Group Holdings is an emerging company in the global market, growing its footprint in the medicinal cannabis sector. It has been increasing its market share by focusing on medical cannabis and expanding its distribution and product offerings in the global market.

Recent Developments

• In September 2023, Althea Group Holdings Limited announced that its subsidiary, Peak Processing Solutions, has signed binding agreements with BBCCC, Inc., a subsidiary of The Boston Beer Company Inc., and WeedMD Rx Inc., a subsidiary of Entourage Health Corp., to launch a new range of cannabis-infused beverages for Canadian consumers.

Recent Developments

• September 2024- Aurora Cannabis Inc. and Vectura Fertin Pharma, Inc. announced the launch of the Luo CBD lozenge, a new product developed to advance wellness and healthcare.
• March 2024- Tilray Brands, Inc. secured approval for Tilray Oral Solution THC 5 CBD 20, Portugal’s first medical cannabis extract, following the earlier approval of Tilray whole flower THC 18.

Analyst Opinion

As per our analyst, the medical cannabis market is expanding rapidly due to several factors: increasing legalization and acceptance of cannabis for medical use, growing patient demand for alternative treatments, and advancements in research and product development. Enhanced regulatory frameworks and expanding insurance coverage also contribute to market growth while raising awareness about the therapeutic benefits of cannabis further fuels its adoption across diverse patient demographics.