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The cannabinoids market size is estimated to grow at a CAGR of 21.18% between 2022 and 2027. The market size is forecasted to increase by USD 42.89 billion. The growth of the market depends on several factors, including the increasing legalization of cannabinoids, the advent of advanced cultivation processes for cannabinoids, and plans to increase the production and availability of medical cannabinoids by governments.
This cannabinoids market report extensively covers market segmentation by application (medical and non-medical), channel (retail pharmacies, online stores, and hospitals), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing legalization of cannabinoids is notably driving market growth, although factors such as side effects associated with the inappropriate use of medical cannabinoids may impede market growth. Our researchers analyzed the data with 2022 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.
The increasing legalization of cannabinoids is notably driving market growth. Many countries have legalized the use of cannabinoids for medicinal purposes. For instance, in December 2022, the US government announced the Medical Cannabinoids and Cannabidiol Research Expansion Act to establish a new registration process for research on cannabinoids. In Australia, the increasing demand for medical cannabinoids has encouraged governments to increase funding for research.
In June 2022, Thailand legalized the cultivation of cannabinoids and their use as raw materials for foods and drinks. In December 2021, Malta became the first member of the EU to legalize cannabinoids for recreational use. It permits adults to possess up to seven grams of the drug and to grow up to four plants at each home. Therefore, governments' efforts for the legalization of cannabinoids are expected to accelerate the growth momentum of the market during the forecast period.
The launch of medical cannabinoid education programs is a key trend shaping the market. The governments of several countries such as the US, Canada, Columbia, Germany, and Greece have legalized the use of medical cannabinoids. Therefore, the number of dispensaries offering medical cannabinoids is increasing. Hence, individuals should be educated about medical cannabinoids.
Many educational institutions are launching medical cannabinoid educational programs. For instance, in July 2022, the University of New Haven announced a collaboration with Green Flower to launch new cannabis education certificate programs. Similarly, in April 2022, Tulsa Community College announced the launch of job-specific medical cannabinoids courses with Green Flower in Oklahoma, US. Therefore, educational programs related to medical cannabinoids can educate more people about their benefits, which, in turn, is expected to support the growth of the market during the forecast period.
Side effects associated with the inappropriate use of medical cannabinoids are challenging market growth. Active ingredients in medical cannabinoids are called cannabis sativa. THC is an important and active cannabinoid. Medical cannabinoids also contain CBD. They also contain other chemicals, the amount of which can vary in different plans. These factors make it challenging to identify the required dosage of medical cannabinoids for patients. Hence, it is important to consult a doctor before using medical cannabinoids.
Medical cannabinoids can cause various side effects, such as changes in mood, lack of coordination, increased appetite, red eyes, dry mouth, nausea, cough, throat infection, and slower reaction time. Severe side effects include increased heart rate, depression, and difficulty in memorizing and learning. Such effects are expected to negatively impact the adoption of medical cannabinoids, which, in turn, is expected to impede the growth potential of the global cannabinoids market during the forecast period.
The market 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Cannabinoids Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aurora Cannabis Inc. - The company offers cannabinoid solutions for medical institutions, hospitals, doctors, pharmacists, and patients across Europe to access safe and reliable cannabis-based medicines. Under the cannabis segment, it offers support services such as patient counseling services, analytical testing services, and design, engineering, and construction consulting services.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the medical segment will be significant during the forecast period. Medical cannabinoids have become an alternative to traditional pain-relieving medications. They can ease various types of chronic pain, such as pain resulting from nerve damage and inflammation. Some of the types of cannabinoid plants used for chronic pain relief are Cannabis indica, Cannabis sativa, and hybrids.
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The medical segment was valued at USD 8.91 billion in 2017 and continued to grow until 2021. Medical cannabinoids can give relief to patients with nausea. The Food and Drug Administration (FDA) in the US has approved dronabinol for nausea and vomiting. Tetrahydrocannabinol (THC) and other cannabinoids, such as CBD in medical cannabinoids, slow the growth or kill certain types of cancer cells. The rising number of patients experiencing nausea and vomiting due to chemotherapy can increase the demand for effective medicinal approaches such as medical cannabinoids. This, in turn, is expected to accelerate the growth momentum of the market during the forecast period.
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North America is estimated to contribute 90% 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.
The use of cannabinoids has been legalized for medical purposes in the US and Canada. The Supreme Court of Mexico has decided to legalize the use of cannabinoids for epilepsy. Therefore, government initiatives to legalize medical cannabinoids are primarily driving market growth. THC in medical cannabinoids resembles the cannabinoid chemicals that occur in the body naturally. The intake of medical cannabinoids can also help in decreasing opioid usage among patients with chronic pain. Therefore, the growing adoption of cannabinoids for the treatment of chronic diseases is driving the growth of the regional market. Continuous research and standardization of products such as cannabinoids for medicinal purposes are expected to increase the demand for cannabis in North America during the forecast period. These factors are expected to drive the growth of the regional cannabinoids market during the forecast period.
The COVID-19 pandemic resulted in a rise in demand for cannabis in the region during 2020-2021. However, in 2021, mass vaccination drives resulted in lifting the lockdowns and resumption of business operations in the global cannabinoids market. Vendors in the market are selling preimmunized cannabis-branded portfolios in Canada to increase margin and mainstream flower and pre-rolled joints, edibles, beverages, and bases. Such factors are expected to drive the growth of the cannabinoids market in North America during the forecast period.
The cannabinoids market report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the cannabinoids market as a part of the global leisure products market within the global household durables market. The parent market, the global leisure products market, covers a variety of categories, such as sports equipment, musical instruments, camping equipment, recreational vehicles, bicycles, toys, and other consumer-oriented games. Technavio calculates the global leisure products market size based on combined revenues generated by manufacturers of household durables, including consumer electronics, home furnishings, home building products, household appliances, houseware and specialties, and leisure products. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Cannabinoids Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.18% |
Market growth 2023-2027 |
USD 42.89 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
20.12 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 90% |
Key countries |
US, Canada, Australia, The Netherlands, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
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., and Unrivaled Brands Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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