Medical Cannabis Market to Surpass 2 Trillion Rubles by 2027
According to experts at Market Research Future, the global medical cannabis market is expected to see a compound annual growth rate (CAGR) of 18.4% in revenue. If this trend continues, the total turnover of medical cannabis worldwide will exceed 2 trillion rubles by 2027.
High Demand for Medical Cannabis
Last year, medical cannabis sales reached $9.2 billion (659 billion rubles). Analysts predict that demand for cannabis will continue to rise, estimating that by 2027, patients will spend $33.2 billion (2.4 trillion rubles) on cannabinoid-based medications. The main reason for this positive trend is the high therapeutic value of the plant. Cannabis is used to treat dozens of conditions, including:
- Alzheimer’s disease
- Depression
- Diabetes
- Arthritis
- Glaucoma
- Epilepsy
Medical cannabis is increasingly being used alongside traditional medications to reduce side effects or enhance efficacy. For example, cannabis is prescribed to cancer patients undergoing chemotherapy to help relieve nausea and stimulate appetite. CBD is also used to increase the bioavailability of cytotoxic drugs that target tumor cells.
Market Research Future estimates that cannabidiol (CBD) oil will continue to lead the cannabinoid-based medicine market in terms of sales volume. CBD does not cause intoxication and is well tolerated, making it popular in pediatric medicine. In the UK, the effectiveness and safety of CBD have already been tested on infants. Newborns were given cannabidiol to treat the effects of neonatal hypoxic-ischemic encephalopathy.
Record Demand for Cannabis
Last year, the global recreational cannabis market grew by 48% compared to 2019, reaching $21.3 billion (1.5 trillion rubles). According to a report by PR Newswire, by 2028, revenue from cannabinoid-based products is expected to reach $111.3 billion (8 trillion rubles). The compound annual growth rate for recreational cannabis sales is projected to hit 23.4%.
The main driver of cannabis sales is the ongoing legalization process. In 2020, cannabis was legalized in four U.S. states, and Canada lifted restrictions on cannabinoid-infused foods, beverages, and cosmetics. Drug policy reform is also progressing outside North America. In the near future, the Netherlands will launch an experiment to create a controlled supply chain for cannabis. Ten government-selected companies will legally grow cannabis and supply cannabinoid products to coffee shops.
In Luxembourg, residents will first be allowed to grow and use cannabis, followed by the opening of a regulated cannabis market for commercial enterprises. Italy is also considering legalizing the cultivation of up to four cannabis plants per household. Authorities believe this measure will reduce the volume of cannabis traded on the black market, positively impacting crime rates.