The medicinal cannabis market is estimated to be valued at USD 23.93 Bn in 2025 and is expected to reach USD 102.58 Bn by 2032, growing at a compound annual growth rate (CAGR) of 23.1% from 2025 to 2032.
Patients and healthcare providers are increasingly driving medicinal cannabis market growth as awareness rises and more regions legalize its use. Physicians are showing greater acceptance of cannabis-based treatments for chronic conditions like pain, epilepsy, and multiple sclerosis. Companies are advancing extraction technologies and developing innovative products that enhance safety and effectiveness. Regulatory bodies in North America and Europe actively support this shift, while ongoing clinical research continues to strengthen cannabis’s medical credibility and expand its role in modern healthcare.
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Concentrates hold the largest market share of 26.9% in 2025. Patients are increasingly seeking fast-acting, high-potency medicinal cannabis treatments, which drives the demand for concentrates. These products provide a cleaner and more efficient option compared to traditional forms, particularly for treating chronic pain, neurological conditions, and severe symptoms. Manufacturers have improved extraction methods to boost purity and consistency, enhancing trust in product quality. Healthcare providers favor concentrates for their precise dosing and easy administration. As education expands, both clinics and patients actively adopt concentrates as a reliable therapeutic choice. For instance, in April 2025, Aurora Cannabis Inc., a leading Canadian medical cannabis company, announced it is now offering medical cannabis concentrates to patients in the United Kingdom. With this launch, the company takes a significant step in introducing its proprietary cultivar-specific inhalable cannabis extracts to the U.K. market.
Tetrahydrocannabinol (THC) expected to hold the largest market share of 57.3% in 2025. Demand for Tetrahydrocannabinol (THC) in the medicinal cannabis market grows as patients and healthcare providers recognize its effectiveness in treating chronic pain, nausea, muscle spasms, and appetite loss. Patients with severe or resistant symptoms often benefit more from THC-focused therapies. As clinical evidence advances, medical professionals actively explore its therapeutic potential. Companies develop improved delivery methods like oils and capsules to ensure safer, more precise use. Legal reforms and increased acceptance of psychoactive cannabinoids continue to boost THC’s prominence in medical treatments. For instance, in September 2025, Trulieve Cannabis Corp. has introduced five new 10 mg THC-infused beverage varieties under its Onward and Upward brands. The new flavors include Onward Berry Smash, Cosmopolitan, Lemon Drop Martini, and Paloma, along with Upward Half & Half iced tea and lemonade. Such innovations are accelerating the medical cannabis market demand.
Parkinson’s Disease acquired the prominent market share of 37.1% in 2025. Patients with Parkinson’s disease increasingly turn to medicinal cannabis to relieve motor symptoms like tremors and rigidity, along with non-motor issues such as anxiety and sleep problems. Cannabis serves as a promising alternative or complement to conventional treatments, helping reduce side effects and enhance quality of life. Researchers continue to advance cannabinoid studies, while regulators support wider use. Healthcare providers actively integrate cannabis-based therapies into their treatment plans to meet growing patient demand and explore new clinical possibilities. For instance, in August 2025, the Parkinson's Foundation has launched PD Trial Navigator, a pilot program to support the PD GENEration study by guiding participants through the genetic clinical trial landscape and helping them enroll in gene-targeted studies.
Hospital pharmacies ensure safe and precise dosing while maintaining strict quality control for patients with complex medical conditions in the medicinal cannabis market. Pharmacists compound and dispense cannabis products that comply with regulatory standards, supporting treatments within hospitals. As clinical research advances and physician acceptance grows, hospitals actively add cannabis therapies to their formularies. They also provide secure storage and continuous monitoring, which enhances patient safety and builds trust. This active involvement helps expand the adoption of medicinal cannabis in healthcare settings.
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North America dominates the overall market with an estimated share of 50.0% in 2025. Legalization continues to expand across North America, fueling rapid growth in the medicinal cannabis market and broadening its medical applications. Companies develop innovative product formulations like oils, capsules, and edibles to improve patient convenience and choices. Healthcare professionals and patients increasingly accept medicinal cannabis, driving its wider use, backed by ongoing clinical research. Investors actively fund cultivation and processing technologies, enhancing product quality and consistency. Regulators also clarify frameworks, enabling safer access and smoother integration of cannabis into mainstream healthcare. For instance, in October 2024, Trulieve Cannabis Corp. partnered with Black Buddha Cannabis, a women-owned medical marijuana brand, to offer its products in Trulieve dispensaries across Arizona and Pennsylvania.
More countries in the Asia Pacific region are exploring legalization and medical use, boosting momentum in the medicinal cannabis market. Governments and healthcare providers increasingly recognize cannabis’s therapeutic benefits, fueling clinical research and product development. Companies actively develop diverse formulations to address the region’s varied patient needs. Improvements in cultivation and manufacturing infrastructure enhance product quality. Meanwhile, awareness and education campaigns reduce stigma, encouraging patients and practitioners alike to embrace medicinal cannabis as a viable treatment option. For instance, in October 2024, Aurora Cannabis Inc., in partnership with MedReleaf Australia, has announced an expanded range of premium medical cannabis oil products for the Australian market.
As more states legalize medicinal cannabis, the market in the United States continues to grow, with healthcare providers increasingly prescribing cannabis-based therapies. Companies actively develop diverse delivery methods like tinctures, capsules, and topicals to meet patient preferences. Researchers receive increased funding to conduct clinical trials that drive new treatment innovations. Cultivators and processors enhance product quality through advanced techniques. Meanwhile, public education and advocacy campaigns work to reduce stigma, promoting broader acceptance among patients and medical professionals across the country. For instance, Pennsylvania launched its medical marijuana research program by approving three of the state’s medical schools to study the potential benefits and risks of using medicinal cannabis to treat various health conditions.
The Chinese government is cautiously exploring the medical potential of cannabis, gradually developing the country’s medicinal cannabis market. Research institutions and pharmaceutical companies actively study cannabinoids and create targeted therapies. The focus on integrating traditional medicine fuels interest in cannabis-based products. Investors are increasing funding in cultivation and processing technologies to enhance quality and meet regulatory standards. Healthcare professionals and patients are becoming more aware, supporting gradual acceptance. Although strict regulations influence market growth, ongoing research and innovation point to a promising future for medicinal cannabis in China.
Governments worldwide are progressively revising laws to legalize or decriminalize medicinal cannabis, fostering market growth. These changes create clearer pathways for research, production, and distribution, encouraging more companies to enter the sector. Regulatory clarity also boosts patient confidence and access. As a result, markets become more structured with improved compliance, helping integrate medicinal cannabis into mainstream healthcare systems while reducing legal uncertainties for patients and providers alike.
The market is witnessing rapid innovation, with new cannabis-derived products like oils, tinctures, capsules, patches, and edibles gaining popularity. These innovations aim to enhance patient compliance, improve dosing accuracy, and minimize side effects. Manufacturers are exploring formulations targeting specific medical conditions, allowing personalized treatment approaches. This diversification attracts a broader patient base and supports better therapeutic outcomes by addressing individual preferences and needs, making medicinal cannabis more accessible and appealing.
There is growing demand for cannabis products tailored to specific medical conditions such as epilepsy, multiple sclerosis, and PTSD. Developing targeted formulations, including controlled-dose tinctures, transdermal patches, and inhalers, can improve patient outcomes and adherence. Innovations in cannabinoid ratios and delivery methods present opportunities to address unmet therapeutic needs. Companies that invest in R&D to create condition-specific, standardized products can capture niche segments and establish leadership in specialized medicinal cannabis therapies.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 23.93 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 23.1% | 2032 Value Projection: | USD 102.58 Bn |
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| Companies covered: |
BOL Pharma, Tilray, Medreleaf Corporation, Aurora Cannabis Inc., Canopy Growth Corporation, Insys Therapeutics Inc., Aphria Inc., MGC Pharmaceuticals Limited, GW Pharmaceuticals plc., Medical Marijuana Inc, Enveric Biosciences, Pascal Biosciences, Realize Therapeutics, Celadon Pharmaceuticals Plc., MAK Scientific LLC, MIRA Pharmaceuticals, and Cardiol Therapeutics |
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About Author
Ghanshyam Shrivastava - With over 20 years of experience in the management consulting and research, Ghanshyam Shrivastava serves as a Principal Consultant, bringing extensive expertise in biologics and biosimilars. His primary expertise lies in areas such as market entry and expansion strategy, competitive intelligence, and strategic transformation across diversified portfolio of various drugs used for different therapeutic category and APIs. He excels at identifying key challenges faced by clients and providing robust solutions to enhance their strategic decision-making capabilities. His comprehensive understanding of the market ensures valuable contributions to research reports and business decisions.
Ghanshyam is a sought-after speaker at industry conferences and contributes to various publications on pharma industry.
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