October 31, 2021 | Publication: Mordor Global Industry Reports

Global Cannabis Market - Market Segmentation

Market Segmentation
Product Type
Revenue Share (%), by Product Type, 2020

Mordor Intelligence Export Table To Excel

CAGR (%) (2021-
Product Type 2016 2017 2018 2019 2020 2021(E) 2026(F)
2026)
Capsules 1.64 1.87 2.14 2.47 2.86 3.34 5.95 12.2
Concentrates 5.77 6.71 7.84 9.17 10.25 11.52 22.84 14.7
Edibles 2.11 2.45 2.86 3.36 3.77 4.39 8.64 14.5
Other
2.76 3.21 3.75 4.41 5.22 6.16 11.37 13
Products
Total 12.28 14.24 16.59 19.41 22.1 25.41 48.79 13.9
Capsules
Revenue in USD billion, Capsules, Global, 2016-2026

Mordor Intelligence

The cannabis market for capsules was valued at USD 2.86 billion in 2020. It is projected to reach USD 5.95 billion by 2026, registering a CAGR of 12.2% during the
forecast period (2021-2026). ​

Owing to the improvement in analysis and the advancement of the market, cannabis is prescribed for the treatment of several health issues, such as restlessness, muscle
contraction, and persistent discomfort. It also helps decrease vomiting and illness due to chemotherapy.​

Cannabis capsules are majorly consisted of highly refined cannabis extract in neutral oil. Different manufacturers use different oils, many rely on a class called medium-
chain triglycerides formulated for easy digestion and absorption. Most businesses are swiftly advancing their analyses concerning the scope of pharmaceutical cannabis
and hemp. Edibles containing both CBD and THC modifications are augmenting the market through their prevalence across all licensed states. ​

Cannabis based recreational products are accepted to only selective countries, which is creating barriers for the players who are investing, and manufacturingcannabis-
based recreational products like cannabis-infused drinks and others to enter other markets. The therapeutic characteristics ofcannabis, which are progressing the
legalization of cannabis capsules, may function as an opportunity for market growth.​

The cannabis capsule business in the North American region may be further accelerated by the advancing legalization ofcannabis for both pharmaceutical and
recreational purposes across North America and the increasing awareness about the health benefits of cannabis among consumers.​

Terra Universal and Cannapure Ozone Technologies are some of the major players in the cannabis capsule market. Cannabis capsules that surpass safety standards are
anticipated to witness high demand and hence, the market for cannabis capsules is likely to grow substantially in the coming years.​

Concentrates
Revenue in USD billion, Concentrates, Global, 2016-2026

Mordor Intelligence

The concentrates cannabis market was valued at USD 10.25 billion in 2020. It is projected to reach USD 22.84 billion by 2026, registering a CAGR of 14.7% during the
forecast period (2021-2026).

Cannabis or marijuana concentrate is a concentrated mass containing tetrahydrocannabinol or THC as the main component.Cannabis concentrates are obtained via
extraction. Solvents like carbon dioxide, butane, or ethanol are used to extract cannabis concentrates from the cannabis plant.

Cannabis concentrates are commonly called dabs, which are available in various forms and are referred to by different names like shatter, budder, hash, live resin, and
butane hash oil. They are consumed in several ways, such as via a water pipe or vaporizer, cooked in edibles, and rolled in joints. The increasing legalization of
marijuana usage is mainly expected to fuel the growth of the global cannabis concentrate market over the forecast period.

Vendors in the market have been offering Cannabis concentrates as prescription drugs to licensed medical practitioners. It has anti-inflammatory properties and is used to
treat epilepsy. Manufacturers like C.V. Sciences, ENCODA, Bluebird Botanicals, Isodiol International, Aurora Canabis, Canopy Growth Corporation are few of the
major top players offering best cannabis concentrates in the global market.

As per a National Health Interview Survey (NHIS), in 2018, about 25 billion adults experienced chronic pain for more than 90 days. This data indicates a big opportunity
for the cannabis concentrate market in the chronic pain domain. Additionally, the increasingcannabis concentrate usage for recreational purposes is expected to majorly
drive the cannabis concentrate market, as over 30% of the total marijuana consumption is by people between 18 and 34 years of age.

Therefore, cannabis concentrates may have a huge opportunity in the medicinal and recreational markets. This market is anticipated to experience a jump in the
upcoming few years.

Edibles
Revenue in USD billion, Edibles, 2016-2026

Mordor Intelligence

The edible cannabis market was valued at USD 3.77 billion in 2020. It is projected to reach USD 8.64 billion by 2026, registering a CAGR of 14.5% during the forecast
period (2021-2026).

Edible cannabis are available in various forms in the global market. Brands like Diamond CBD Company, Everest, Bearly Legal, Kiva, Coda Signature and others have
introduced edible cannabis in form of gummies, chocolates, candies etc. Most cannabis edibles or cannabis-infused food products contain a significant amount of THC.
THC-dominant edible cannabis products are mainly consumed for recreational and medical purposes.

Aversion to smoking is one of the main factors leading to the significant growth of cannabis-infused edibles over the past years. The fact that edibles are inconspicuous
has shifted consumer preferences away from smoking. This growing popularity has led edibles to penetrate most US retail stores, in those states having some specific
cannabis or marijuana regulated laws. In 2019, the edible segment comprised 13% of the sales of adult-usecannabis, while the beverages segment contributed an
additional sale of 1-2%.

Similarly, in October 2019, Canada legalized cannabis-infused food products. This has supported the significant growth of the market in North America. Furthermore,
Canada is also focusing on expanding its retail sales of edibles with single servings, which constitute around 10mg of edibles.

The collaborations across the industry are massive. For instance, in 2019, brands such as Constellation and Canopy growth collaborated in expanding the market for
cannabis-based beverages. Also, AB InBev and Tilray collaborated for a USD 100 million venture to research cannabis-infused non-alcoholic drinks for the Canadian
Market. Therefore, by focusing on the packaging and labelling, companies can increase the sales of cannabis edible products during the forecast period.

Other Product Types

Revenue in USD billion, Other Products, Global, 2016-2026
Mordor Intelligence

The cannabis market for the other products segment was valued at USD 5.22 billion in 2020. It is projected to reach USD 11.37 billion by 2026, registering a CAGR of
13.0% during the forecast period (2021-2026).

The other products include oils, beauty and skin care products, topicals, and dog treats. The legalization and integration of cannabis into consumer products have raised
the sales of cannabis products during the study period.

The numerous skin benefits of cannabidiol (CBD) make it a popular ingredient in skin products such as oils, creams, lotions, balms, and serums. Furthermore, the anti-
inflammatory benefits of CBD make it a natural remedy for treating psoriasis, a chronic autoimmune disease. This has enabled companies to manufacture and sell
cannabis products. Cronos group Inc., Elixinol Global Ltd, Endoca BV, Isodiol International Inc., and Josie Maran Cosmetics LLC are some of the prominent global
players involved in the sales of CBD beauty and skincare products.

The collaboration of the companies involved in the manufacturing and distribution of cannabis products may enhance the market in the coming years. For instance, in
August 2018, Aurora Cannabis Inc. and its subsidiary MedReleaf Corp. (Canada) entered an agreement with the OntarioCannabis Store for the distribution of its high-
margin products, such as pre-rolls and oils.

Beauty brands like BLNCD, CBD+ Nature, Gron, La La Leaf, Moon Mother Hemp are a few of the key players who have introduced cannabis-based cosmetic products
to the international market.

As the legal cannabis industry continues to establish itself as a greater market in Europe and North America, more established companies outside the industry are getting
involved in significant ways.

Therefore, the growing demand for skin care products among millennials and the middle-aged population is likely to enhance the cannabis market in the other products
segment during the forecast period.

Application
Revenue Share (%), by Application, Global, 2020

Mordor Intelligence Export Table To Excel

CAGR (%) (2021-
Application 2016 2017 2018 2019 2020 2021 (E) 2026 (F)
2026)
Medical 3.33 3.84 4.46 5.2 5.95 6.84 12.41 12.7
Recreational 8.95 10.4 12.13 14.21 16.15 18.57 36.38 14.4
Total 12.28 14.24 16.59 19.41 22.1 25.41 48.79 13.9
Medical
Revenue in USD billion, Medical, Global, 2016-2026
Mordor Intelligence

The cannabis market for medical purposes was valued at USD 5.95 billion in 2020. It is projected to reach USD 12.41 billion by 2026, registering a CAGR of 12.7%
during the forecast period (2021-2026).

Cannabis and cannabinoid drugs are widely used to treat diseases or alleviate symptoms in Australia, Canada, Germany, Israel, Peru, and Poland. In recent years, the
involvement of cannabis in several physiological processes, such as blood pressure, appetite stimulation, and nausea and vomiting control, has led to the cultivation of
medicinal cannabis across the world.

In 2018, Sativex, an oral spray derived from the cannabis plant, containing THC and CBD in a 1:1 ratio, was licensed for the treatment of spasticity in multiple sclerosis
in 29 countries, including the United Kingdom, Israel, Canada, Brazil, and Australia.

Dronabinol and nabilone are synthetic cannabinoids licensed for the treatment of weight loss in patients with AIDS, and nausea and vomiting, in the United States, the
Netherlands, Germany, and Austria. Based on clinical trials, the suggested usage of CBD in medicinal products is 150-1500 mg/day.

The medicinal properties of cannabis, increasing advances in genetic development, and intellectual property on cannabis may expand the global market over the coming
years. For instance, in January 2018, the Australian government allowed cannabis producers in the region to export medical cannabis and its products in the global
market.

According to Harvard University, the most common use for medical cannabis in the United States is for pain control. In 2020, about 85% of Americans supported
legalizing medical cannabis, and it is estimated that at least several million Americans currently use it.

There is a higher risk of chronic diseases after 50 years of age. Therefore, the aforementioned demographic is expected to boost the demand for cannabis across the
world during the forecast period.

Recreational
Revenue in USD billion, Recreational, Global, 2016-2026

Mordor Intelligence

The cannabis market for recreational purposes was valued at USD 16.15 billion in 2020. It is projected to reach USD 36.38 billion by 2026, registering a CAGR of
14.4% during the forecast period (2021-2026).

Cannabis is the most commonly used mind-altering drug after alcohol. Recreational cannabis can be used in several forms including smoked as a dry, shredded green
and brown mix of flowers, stems, seeds, and leave. It might also be mixed in food or brewed as a tea. Recreational cannabis is legal only in a few countries. However,
the recreational cannabis market is expected to grow in the long-term period, as the younger generation is moving from alcohol tocannabis, citing reasons of safety, cost,
and health.

The growing global demand for cannabis has propelled the need to develop better product delivery systems and sustainable product strains. This need has, in turn, led to
many companies coming up with R&D which extensively investigates several genetic improvement strategies for cannabis. For instance, Hydropothecary partnered with
Segra in March 2018 to incorporate plant tissue propagation into the cannabis plant production process. This was done to help increase the yield of healthy plants and
improve plant variants to serve the growing market for recreational cannabis.

According to a Monitoring the Future Survey (2019) by the National Institute on Drug Abuse (NIDA), 35.7% of 12th-graders reported the use of cannabis in 2018. This
number was expected to rise among teenagers in coming years.

The COVID-19 pandemic has slightly impacted the recreational cannabis market due to the closure of coffee shops and cannabis social clubs, particularly in Europe. In
the United States, markets such as Las Vegas and Massachusetts were hit particularly hard, as sale of recreational marijuana in these regions was prohibited by
government during the outbreak.

However, the legal approval for recreational cannabis in Europe and North America is likely to enhance the market during the forecast period.

Compound Type
Market Share (%), by Compound Type, Global, 2020
Mordor Intelligence Export Table To Excel
CAGR (%) (2021-
Compound Type 2016 2017 2018 2019 2020 2021(E) 2026 (F)
2026)
Tetrahydrocannabinol (THC) 5.84 6.79 7.93 9.3 10.52 11.97 23.82 14.8
Cannabidiol (CBD) 4.23 4.92 5.75 6.73 7.7 8.97 17.72 14.6
Balanced THC and CBD 2.21 2.53 2.91 3.38 3.88 4.47 7.26 10.2
Total 12.28 14.24 16.59 19.41 22.1 25.41 48.79 13.9
Tetrahydrocannabinol (THC)
Revenue in USD billion, Tetrahydrocannabinol (THC), Global, 2016-2026

Mordor Intelligence

The cannabis market for tetrahydrocannabinol (THC) was valued at USD 10.52 billion in 2020. It is projected to reach USD 23.82 billion by 2026, registering a CAGR
of 14.8% during the forecast period (2021-2026).

According to the National Institute of Drug Abuse (NIDA), THC, or tetrahydrocannabinol, is the chemical responsible for most of cannabis's psychological effects.
Though it is better known for its mind-altering euphoria, THC has significant medical benefits.

In December 2018, the United States removed cannabis with less than 0.3% THC on a dry weight basis from under the controlled Substance Act. Therefore, the usage of
THC is anticipated to increase in North America. Similarly, the FDA approved the active ingredients of THC, Marinol, and Syndros, for therapeutic use in cancer
chemotherapy and for the treatment of anorexia associated with weight loss in patients with AIDS.

Companies have been extensively venturing into the development of genetically-improved high-yielding varieties, with better harvestability and market quality, reliably
low THC content, and improved herbicide tolerance of the cannabis crop. For instance, in 2019, the Global Hemp Group announced its project on clone production with
ultra-low THC levels, in North America.

In the European Union, cannabis with less than 0.3 THC is considered as an agricultural commodity or agricultural material. This has led to a higher cultivation of
cannabis in Europe in recent years. Similarly, the legalization of medical cannabis in Asia may increase the usage of THC in coming years. Mostly, THC is used for
recreational purposes through illegal means.

Therefore, the cultivation of cannabis for industrial applications, such as animal feed, woven textile fibers, and building materials, is likely to enhance the market during
the forecast period.

Cannabidiol (CBD)
Revenue in USD billion, Cannabidiol (CBD), Global, 2016-2026
Mordor Intelligence

The cannabis market for cannabidiol (CBD) was valued at USD 7.70 billion in 2020. It is projected to reach USD 17.72 billion by 2026, registering a CAGR of 14.6%
during the forecast period (2021-2026).

The rise in the number of medical practitioners prescribing cannabinoids for various health issues is increasing the demand for these products, which in turn, is
contributing to market growth. For instance, according to a survey of dermatologists conducted in the United States, in 2018, around 91% of the 531 total respondents
had no issues with prescribing CBD-based products to their patients.

In addition, around 55% of patients asked dermatologists about CBD-based products. In 2019, a survey conducted by the American Society of Anesthesiologists
demonstrated that around 75% Americans were interested in using cannabinoid compounds for pain management.

Epidiolex, which contains a purified form of CBD derived from cannabis, was approved by the FDA for the treatment of seizures associated with Lennox-Gastaut
syndrome or Dravet syndrome.

The rise in the number of players entering the market, coupled with increasing awareness of the health benefits offered by CBD, such as relieving pain, reducing
inflammation, and lowering serotonin levels, is further anticipated to fuel growth of the CBD market during the forecast period. For instance, in 2019, GreenWay Herbal
Products LLC, a US-based company, announced the launch of its cannabinoid product range containing a cannabidiolic acid (CBDa) formula.

Such initiatives may help in increasing awareness regarding the potential benefits of the compound, and thereby, boost demand over the coming years. The growing
number of consumers opting for isolated cannabinoid products and the rising awareness of the products may drive the market during the forecast period.

Balanced THC and CBD

Revenue in USD billion, Balanced THC and CBD, Global, 2016-2026

Mordor Intelligence

The cannabis market for balanced THC and CBD was valued at USD 3.88 billion in 2020. It is projected to reach USD 7.26 billion by 2026, registering a CAGR of
10.2% during the forecast period (2021-2026).

THC may cause negative effects like paranoia, dissociative thoughts, impaired memory, or even psychotic episodes. Therefore, CBD is used as a balancing ingredient as
it may work against THC and reduce the negative effects. In many countries, THC is recommended for pain and CBD for improving the immune system. Diseases, such
as insomnia, fibromyalgia, and skin disorders may be treated through balanced THC and CBD.

Many research studies suggest that CBD and THC can be used in proportions of 18:1, 4:1, and 1:1, in vape oils, tinctures, and edibles, respectively, for maintaining a rare
psychoactive. The 1:1 CBD to THC mouth spray, Sativex, made in the United Kingdom, has high demand in Spain, Germany, Canada, and Brazil.

A report by National Academies of Sciences, Engineering, and Medicine in 2017 stated that cannabis with balanced THC and CBD may be effective in treating cancer
patients with nausea, adults with chronic pain, and MS patients with spasms.

Several research studies suggest that THC may be helpful in reducing the anxiety and hyperarousal common in Post Traumatic Stress Disorder (PTSD) patients,
precisely because the psychoactive produces feelings of relaxation and may also help eliminate negative memories. As THC is more effective when combined with
CBD, the use of balanced THC and CBD products may become more popular.

Argyle, Dancehall, Sweet and Sour, Pennywise, and Cannatonic are some strains with the ideal THC-CBD ratio of 1:1 that are cultivated in different regions.

The increase in the usage of balanced THC and CBD products in the treatment of chronic disorders is anticipated to drive the market during the forecast period.

By Geography
Revenue Share (%), by Geography, Global, 2020
Mordor Intelligence Export Table To Excel
CAGR (%) (2021-
Geography 2016 2017 2018 2019 2020 2021(E) 2026 (F)
2026)
North America 6.91 8.05 9.39 11.01 12.6 14.57 28.33 14.2
Europe 1.25 1.45 1.7 2 2.3 2.66 5.09 13.9
Asia-Pacific 0.8 0.93 1.09 1.28 1.46 1.67 3.14 13.4
South America 2.65 3.09 3.62 4.25 4.78 5.45 10.33 13.6
Middle East &
0.67 0.72 0.79 0.87 0.96 1.07 1.91 12.3
Africa
Total 12.28 14.24 16.59 19.41 22.1 25.41 48.79 13.9
North America
Revenue Share (%), North America, 2020

Mordor Intelligence Export Table To Excel

CAGR (%) (2021-
North America 2016 2017 2018 2019 2020 2021 (E) 2026 (F)
2026)
United States 3.81 4.45 5.19 6.1 7.14 8.36 16.33 14.3
Canada 2.83 3.31 3.89 4.57 5.08 5.79 11.21 14.1
Rest of North
0.27 0.29 0.31 0.34 0.38 0.42 0.79 13.6
America
Total 6.91 8.05 9.39 11.01 12.6 14.57 28.33 14.2
United States
Revenue in USD billion, United States, 2016-2026
Mordor Intelligence

The US cannabis market was valued at USD 7.14 billion in 2020. It is projected to reach USD 16.33 billion by 2026, registering a CAGR of 14.3% during the forecast
period (2021-2026).

The cannabis industry has matured significantly in recent years due to its application in medicine. As a result, the NationalCannabis Industry Association (NCIA) is
promoting growth of the legal cannabis industry and providing it with favorable social, economic, and legal conditions in the United States. In 2019, the NCIA joined
four front holdings to approve the government's move for the removal of cannabis from the Controlled Substances Act.

In December 2018, the government approved the farm bill, making cannabis containing less than 0.3% THC legal in the country. Similarly, some of its derivative
compounds have been approved by the Food and Drug Administration for medicinal use. Marinol, Syndros, Cesamet, and Epidolex are cannabinoid drugs that received
approval from the FDA in the country. For non-prescription use, cannabidol derived from industrial hemp is legal at the federal level. However, legality and enforcement
vary by state.

In May 2019, the Illinois general assembly passed the Illinois Cannabis Regulation and Tax Act to legalize recreational cannabis use by adults aged over 21 years. The
act allows use up to 31 g. With this law, Illinois became the first state to legalize adult cannabis sales through an act of state legislature. Similarly, in May 2019, Texas
expanded the use of medicinal cannabis in patients with Parkinson's disease, autism, multiple sclerosis, spasticity, and terminal cancer.

As a psychoactive drug, cannabis continues to find extensive favor in recreational and medicinal uses in the United States. Till 2020, 15 states and two US territories had
legalized the recreational use of cannabis. 35 states and four US territories legalized cannabis for medicinal use. CV Sciences is one of the major player in the United
States, offering hemp-based phytocannabinoids, such as CBD oil, to the beauty care, pet care, nutraceuticals, specialty beverage, and functional food sectors. Therefore,
the increasing instances of legalization of cannabis for medicinal and recreational use by adults are expected to drive the UScannabis market during the forecast period.

Canada
Revenue in USD billion, Canada, 2016-2026

Mordor Intelligence

The Canadian cannabis market was valued at USD 5.08 billion in 2020. It is projected to reach USD 11.21 billion by 2026, registering a CAGR of 14.1% during the
forecast period (2021-2026).

Cannabis became legal in October 2018 in the country, and there wasn't enough supply to meet the increased domestic demand. The government is legalizing alternative
cannabis products, like edibles and vapes. The Statistics Canada data shows that compared to April-June 2019, people spent 74% more money on licensedcannabis
during the same period in 2020 in the country, which is just after the World Health Organization declared a COVID-19 pandemic in March. This shows the increased
consumption of cannabis and its related products in the country.

Health Canada imposed safety requirements that ensure that the market and the related products are well-regulated. To ensure that products are free of contaminants,
licensed cannabis producers and product manufacturers are using irradiation methods. Approximately 80% of licensed producers are using irradiation to sterilize their
products in the country. In the cannabis market, the most critical factor is that the products are comprised of clean and purecannabis.

Major players, like Canada-based Aurora Cannabis is one of the top CBD oil companies in the world which primarily focuses on producing and selling medical cannabis
products. However, as per a study published in the Frontiers of Pharmacology, irradiation had a measurable effect on the content of various cannabis terpenes, mainly on
the more volatile monoterpenes.

In general, the reduction of affected terpenes was between 10% and 20%, but for some components, this may be as much as 38%. In accordance with this, Canadian
company Flowr Corp. offers cannabis products that meet Health Canada's stringency without the need for irradiation. Therefore, non-irradiatedcannabis that surpasses
the safety standards set by Health Canada is anticipated to be the goal for a sustainable and healthy Canadian cannabis market during the forecast period.

Rest of North America

Revenue in USD billion, Rest of North America, 2016-2026
Mordor Intelligence

The Rest of North America cannabis market was valued at USD 0.38 billion in 2020. It is projected to reach USD 0.79 billion by 2026, registering a CAGR of 13.6%
during the forecast period (2021-2026).

The application of cannabis-derived products, such as marijuana, has been widely used for the effective treatment of health ailments, such as chronic pain, depression,
social anxiety, and cancer, in North America. In July 2017, Mexico legalized the use of cannabis to treat diseases, like epilepsy, Parkinsons, and cancer. The
psychoactive part of cannabis, THC, is classified as therapeutic under the Mexican law. However, in 2018, the Supreme Court of Mexico prohibited the use ofcannabis,
and it termed cannabis illegal for use in the country.

In January 2021, the Mexican health ministry allowed pharmaceutical companies to conduct medical research on cannabis products. The new medicinal rule states that
companies need to obtain permission from the Mexican health regulator, COFEPRIS. This reform may lead to the recreational use of marijuana, boosting the largest
cannabis market in the region during the forecast period. Furthermore, the new reform sets the rules for sowing, cultivation, and harvesting ofcannabis for medicinal
purposes, which may further allow businesses to grow marijuana legally on Mexican soil

In Cuba, cannabis is illegal, and possession of small amounts is punishable by 6 months to 2 years in prison in the country. In Panama, the use ofcannabis was legalized
for the consumption of liquid marijuana for medicinal purposes in 2018. As a result, there has been an increase in the cultivation of cannabis in the country during recent
years.

The COVID-19 pandemic allowed the cannabis cultivation and processing in Costa Rica, due to its growing usage in pharmaceutical industries. Furthermore, Costa Rica
has seen significant development in its cooperative structure and labor associations, which were born under the expansion of coffee and sugarcane. This could be
beneficial to the cannabis industrialization process over the coming years. Therefore, the increasing investments in the region are expected to promote the North
American cannabis market during the forecast period.

Europe
Revenue Share (%), Europe, 2020

Mordor Intelligence Export Table To Excel

CAGR (%) (2021-
Europe 2016 2017 2018 2019 2020 2021 (E) 2026 (F)
2026)
Germany 0.08 0.1 0.12 0.14 0.16 0.19 0.38 14.6
Czech Republic 0.11 0.12 0.14 0.17 0.2 0.25 0.43 11.7
Croatia 0.1 0.11 0.13 0.16 0.19 0.23 0.42 12.5
Rest of Europe 0.96 1.12 1.31 1.53 1.74 1.99 3.86 14.2
Total 1.25 1.45 1.7 2 2.3 2.66 5.09 13.9
Germany
Revenue in USD billion, Germany, 2016-2026
Mordor Intelligence

The German cannabis market was valued at USD 0.16 billion in 2020. It is projected to reach USD 0.38 billion by 2026, registering a CAGR of 14.6% during the
forecast period (2021-2026).

In March 2017, Germany legalized medicinal cannabis to supply cannabis products to the growing patient demand. In Germany, medical cannabis products are sold
exclusively in pharmacies, and they are prescribed by doctors as a last resort medicine, which means the patient exhausted all other avenues of treatment. According to
the International Narcotics Control Board (INCB), Germany imported in total around 7.6 metric ton of all kind of cannabis products, namely, cannabis flowers, extracts,
preparations, and finished medicinal products, in 2018, compared to around 4.5 metric ton in 2017.

Moreover, demand for medicinal cannabis products in Germany is expected to be around 16 metric ton in 2020. The cultivation of medicalcannabis in the country is
approved on the basis of tender. For instance, in 2019, Germany's health regulator, Federal Institute of Drugs and Medical Products (BfARM), allowed companies,
Aurora, Aphria, and Nuuvera, to grow a total 10,400 kilograms of medicinal cannabis over the next four years. This may support growth of the market during the forecast
period.

Manufacturers and distributors selling cannabis using irradiation techniques are obliged to hold a respective license under the act for the treatment of pharmaceuticals
with radioactive or ionizing radiation (AMRadV), which is the applicable law for the irradiation of pharmaceuticals. Endoca is among the leading CBD oil companies
and one of the largest CBD oil manufacturers by volume. The company is based out of Europe with an office in the United States. It claims to manufacture products
from certified organic and natural cannabis (hemp) plants, grown and cultivated without pesticides or herbicides.

The excessively high prices caused by costly and time-consuming quality inspections of the products in the pharmacies and protracted approval and reimbursement
procedures of health insurance funds are slightly impacting the market. However, improvements in the stability and efficacy of medicinal cannabis products and the
enhancement in supply chain are likely to bolster the German cannabis market during the forecast period.

Czech Republic
Revenue in USD billion, Czech Republic, 2016-2026

Mordor Intelligence

The Czech Republic cannabis market was valued at USD 0.20 billion in 2020. It is projected to reach USD 0.43 billion by 2026, registering a CAGR of 11.7% during the
forecast period (2021-2026).

According to the Drug Policy Department of the Government, the consumption of Czech Republic is growing significantly in the past few years. Nearly 90% of the
cannabis in the country is used to treat chronic intractable pain, followed by multiple sclerosis.

In October 2019, the Czech government announced the plans to subsidize the cost of medicinal cannabis from public health insurance. Under this plan, patients would
be reimbursed for up to 90% of the cost of their medical cannabis prescriptions. This may strengthen the medicinal cannabis industry in the country.

According to the Czech State Agency for Medicinal Cannabis (SAKL), medicinal cannabis is prescribed by about 1.5% of the doctors in the country. There is growing
demand for products made of cannabidiol (CBD), which is an essential component prescribed to reduce anxiety and control seizures.

In April 2018, Canopy Growth Corporation acquired Annabis Medical s.r.o, a medicinal cannabis distributor, for expanding in the emerging medicinalcannabis market
in the Czech Republic. In May 2020, the Czech government enacted the bill for promoting the possibilities in cultivating cannabis for medical use to a broader range,
including natural persons, thereby increasing its availability to Czech patients.

The cultivation of the cannabis plants and CBD production from the plants, such CBD oil, CBD drops, or CBD cosmetics products, are less controlled in the Czech
Republic. Companies like Czech Medical Herbs, Sciva Corporation, Biovita Group and others are few of the major key players dominating the domestic market.

Therefore, continuous research and standardization of products for medicinal purposes and increasing popularity of cannabis products is likely to have a positive impact
on the Czech Republic cannabis market during the forecast period.

Croatia
Revenue in USD billion, Croatia, 2016-2026
Mordor Intelligence

The Croatian cannabis market was valued at USD 0.19 billion in 2020. It is projected to reach USD 0.42 billion by 2026, registering a CAGR of 12.5% during the
forecast period (2021-2026).

In 2020, Croatia passed the legislation allowing doctors to prescribe medicinal cannabis. The law states that prescriptions will be valid for 30 days, and patients can be
issued a maximum of 7.5 grams of cannabis per prescription. The medicinal products containing dronabinol, nabiximols, and nabilone have high demand in the country.
Furthermore, there is no marketing authorization for these products, but they can be imported or produced based on prescriptions for individual patients issued by
selected primary healthcare physicians following the recommendation of a specialist physician.

In 2019, the Croatian parliament allowed the cultivation and production of cannabis for medicinal purposes in the country. The companies that have a manufacturing
authorization for drugs or active substances from the Croatian Agency for Medicinal Products and Medical Devices (HALMED) will be able to grow low THC cannabis
for medicinal purposes.

In Croatia, the cultivation and production of medical cannabis will be exclusively handled by the existing authorized pharmaceutical companies and urban pharmacies,
such as Teva, Adriatic-Galenic, Pharma Sá, Belupa, City Pharmacy Zagreb, and Immunological Institute. Players from cosmetic industry like Ilesol Pharmaceuticals, an
industrial scale producer of full-spectrum CBD and non-detectable THC products, offer a wide range of CBD/CBG products, intermediates, cosmetic ingredients, and
consumer products.

In 2019, International Cannabis acquired 155 metric ton of processed industrial hemp from Eviana Health Corporation. Similarly, International Cannabis acquired Future
Hemp Corp., which holds an exclusive supply agreement for the delivery of 400 metric ton of certified organic hemp from a licensed Croatian producer. Therefore,
these key activities in the market can enhance the growth of the market studied during the study period.

The growing demand for cannabidiol (CBD)oils in the country is driving the cultivation of cannabis in Croatia. This is enhancing the Croatian cannabis market during
the forecast period.

Rest of Europe
Revenue in USD billion, Rest of Europe, 2016-2026

Mordor Intelligence

The Rest of Europe cannabis market was valued at USD 1.74 billion in 2020. It is projected to reach USD 3.86 billion by 2026, registering a CAGR of 14.2% during the
forecast period (2021-2026).

The Rest of Europe includes France, Spain, Russia, Italy, the United Kingdom, Ireland, the Netherlands, Ukraine, and Denmark. In France, cannabis is illegal for
personal use, and cannabis derived products are permitted for medicinal uses. In September 2018, the French National Agency for Drug Safety (ANSM) started an
experimentation on therapeutic cannabis for evaluating the new public policy and distribution of cannabis products for specific diseases in the country. These research
studies will enable the pharmaceutical industries to use cannabis in the preparation of medicines for the treatment of various diseases.

According to the poll by the French Observatory of Drugs and Addiction, a government body, 9 in 10 were in favor of legalizing medicinal cannabis in the country.
Several cannabis consumption clubs, and user associations were established throughout Spain. These clubs are legal, only if they distribute only to a restricted list of
legal adults. In June 2017, Catalonia, an autonomous community in the Spain legalized the cultivation, consumption, and distribution of cannabis for members of
designated cannabis clubs. The clubs must be self-sufficient non-profit organizations, and they only distributecannabis to those aged 18-years-old and over.

Cannabis clubs in Catalonia are also limited to producing 150 kg of dried cannabis a year and must follow rules intended to stop drug tourism. Cannabis is cultivated
throughout the greater part of Russia, and it is one of the principal crops in the provinces of Orel, Kursk, Samara, Smolensk, Tula, and Voronezh. Cannabis cultivation is
legal for the medicinal and industrial uses in Italy. In order to keep up with the demand from doctors and patients, the army in the country is planning to expand its
cultivation to other areas of the military facility, where new green houses have already been set up to reach an estimated production of 300 kg per year. The growing
applications of cannabis for medicinal and industrial purposes are driving the European cannabis market during the forecast period.

Asia-Pacific
Market Share (%), Asia-Pacific, 2020
Mordor Intelligence Export Table To Excel
CAGR (%) 2020-
Asia Pacific 2016 2017 2018 2019 2020 2021E 2026F
2025
Australia 0.5 0.58 0.69 0.81 0.95 1.12 2.11 13.5
Rest of Asia-Pacific 0.3 0.35 0.4 0.47 0.51 0.54 1.02 13.8
Total 0.8 0.93 1.09 1.28 1.46 1.67 3.14 13.4
Australia
Revenue in USD billion, Australia, 2016-2026

Mordor Intelligence

The Australian cannabis market was valued at USD 0.95 billion in 2020, and it is anticipated to reach USD 2.11 billion by 2026, registering a CAGR of 13.5% during the
forecast period (2021-2026).

In Australia, cannabis is relatively easy to obtain. According to the Ecstasy and Related Drug Reporting System (EDRS) report in 2019, the perceived availability of
hydroponic cannabis is high, followed by bush cannabis. The use of cannabis for medicinal purposes was legislated by the Australian parliament in 2016. Recreational
cannabis is illegal in Australia, except for the Australian Capital Territory, where adults can possess 50 gram ofcannabis and grow two cannabis plants, as of January
31st, 2020.

Australia has one of the biggest federally regulated medical marijuana markets. At the end of 2020 there were 30,000 registered patients allowed to purchase medical
cannabis in the country. With the rising cannabis approvals for patients, the medical cannabis oil market is booming in the country. According to Canadian health records,
Australia was the leading destination for Canada's exports of medical cannabis oil products in 2019 with nearly 3,700 liters (977 gallons) shipped to the country.

Australia is considering reforms that have the potential to transform the country's cannabis sector. The Therapeutic Goods Administration (TGA), the Australian
regulatory agency in charge of the rules of medical cannabis, in December 2020, gave the green light for low dose cannabidiol (CBD) to be made available through over-
the-counter methods without a prescription w.e.f February 2021.

The proposed amendments will allow Australian exports to meet the biosecurity import requirements for any market that requires a phytosanitary certificate. For
instance, West Perth-based Little Green Pharma completed the first export of Australian produced medical cannabis oil to the United Kingdom in April 2020. The
medicinal cannabis industry this year received a shot in the arm when Australia's richest person Gina Rinehart took a 10 per cent stake in Little Green Pharma and
merger of USD 17.5 million takeover of canine medicinal cannabis developer CannPal Animal Therapeutics by AusCann Group.

Therefore, with the changing laws and growing medical cannabis industrywith the growth in number of patients, the market is expected to significantly expand in
Australia in the coming years.

Rest of Asia-Pacific
Revenue in USD billion, Rest of Asia-Pacific, 2016-2026
Mordor Intelligence

The Rest of Asia Pacific cannabis market was valued at USD 0.51 billion in 2020, and it is anticipated to reach USD 1.02 billion by 2026, registering a CAGR of 13.8%
during the forecast period (2021-2026).

The liberation for the use of cannabis in the medical industry created various growth opportunities in Asian countries over the last few years. For instance, in March
2019, Japan approved the cannabis compound, Epidiolex, for clinical trials. Thailand is among the largest producers ofcannabis worldwide. In late 2018, it became a
cannabis production hub for legalized medical cannabis. In December 2018, Thailand's military junta-appointed parliament voted to amend the 1979 Narcotics Act to
legalize medical cannabis use. In February 2019, Thailand legalized cannabis for medicinal and research uses.

In December 2020, authorities removed additional parts of the cannabis plant from criminal statutes. In March 2021, Deputy Prime Minister and Public Health Minister
Anutin Charnvirakul announced that households could legally grow up to six cannabis plants. The Philippine House of Representatives passed a proposed measure
legalizing the use of cannabis for research and medical uses in the Philippines, in January 2019. The House Bill 6517 or the Philippine Compassionate MedicalCannabis
Act seeks to provide "compassionate and right of access to medical cannabis and expanding research into its medicinal properties".

In March 2019, South Korea legalized the medical use of cannabis. Although the approved products will remain tightly regulated, the legalization of cannabis is expected
to pave the way for the import of certain THC- and CBD-based medications. In 2019, New Age Beverages Corporation, the Colorado-based organic and natural
products company, announced the approval by the Japanese Narcotics Control Division and the Japanese Ministry of Health for New Age's CBD products in Japan. New
Age created a separate, wholly owned subsidiary in 2018, under which, it commercializes all of its CBD-infused products to be sold immediately through over 50,000
direct-to-consumer product consultants in Japan.

Some of the notable players in Asia Pacific region are CBD Thai, Aurora Cannabis, BOL Pharma etc. Hence, the recent approvals for cannabis-based products and
growing research activities are likely to drive market for cannabis in Rest of Asia-Pacific in the coming years.

South America
Revenue Share (%), South America, 2020

Mordor Intelligence Export Table To Excel

CAGR (%) 2021-
South America 2016 2017 2018 2019 2020 2021E 2026F
2026
Argentina 1.68 1.96 2.29 2.67 2.94 3.29 6.37 14.1
Chile 0.65 0.76 0.89 1.05 1.22 1.41 2.63 13.2
Peru 0.14 0.17 0.21 0.26 0.32 0.39 0.69 12
Rest of South
0.18 0.2 0.23 0.27 0.31 0.36 0.64 12.3
America
Total 2.65 3.09 3.62 4.25 4.78 5.45 10.33 13.6
Argentina
Revenue in USD billion, Argentina, 2016-2026
Mordor Intelligence

The Argentine cannabis market was valued at USD 2.94 billion in 2020, and it is anticipated to reach USD 6.37 billion by 2026, registering a CAGR of 14.1% during the
forecast period (2021-2026).

The main regulatory authorities with jurisdiction over cannabinoid drugs in Argentina are the Ministry of Health (MoH), the National Comprehensive Drug Policy
Department (SEDRONAR), and the National Agency of Medicines, Foods and Medical Technology (ANMAT). In March 2017, the country legalized the medicinal use
of cannabis oils, but maintained an existing prohibition on the cultivation of the plant and the possession of seeds by individuals or groups. With 2017 legislation,
Argentina joined the growing number of South American countries to relax the cannabis laws.

The Government is also taking progressive legislation steps toward cannabis. Recently, Argentina's Ministry of Health announced major changes to the country's medical
marijuana laws. In November 2020, it authorized people to grow marijuana at home for medicinal use. A decree issued by the president also allows pharmacies to sell
cannabis-derived oils, creams, and other products, and it orders public and private insurance systems to cover these medications for patients who obtain a prescription.
Furthermore, the new regulation also allows cultivation by third parties who grow cannabis on the behalf of those with a medical need.

In 2019, Blueberries Medical Corp., a Latin American licensed producer of medicinal cannabis and cannabis-derived products, completed the acquisition of BBV Labs
Inc. (“BBV"). With the Purchase Agreement, Blueberries will have the rights to acquire cannabis cultivation, processing, manufacturing, and other rights in Argentina,
pursuant to a definitive joint venture agreement with the Argentine state-owned companies, Cannabis Avatara, S.E. (“Cannava"), and BBV, (the “Joint Venture").

Therefore, with the legalization of cannabis cultivation for medicinal use and new business partnerships and expansions, the market is expected to grow significantly in
Argentina in the coming years.

Chile
Revenue in USD billion, Chile, 2016-2026

Mordor Intelligence

The Chilean cannabis market was valued at USD 1.22 billion in 2020, and it is anticipated to reach USD 2.63 billion by 2026, registering a CAGR of 13.2%, during the
forecast period (2021-2026).

The consumption of cannabis in Chile is higher than in any other Latin American country. The plant has begun to be cultivated in the country (since 2014) but only for
medical purposes. A large amount of the cannabis used in the country is imported from its neighbors.

Chile's cannabis culture is more developed than that of other Latin American countries. Following decriminalisation in 2016, the country has seen a surge in grow shops
and home growing as people seek high-quality, safe goods for recreational and therapeutic purposes. Medical cannabis is now legal in Chile. Cannabis in Chile has been
legal since 2016, but it wasn't readily available until pharmacies started selling cannabis products in 2017.

Cannabis products are distributed through more than 500 pharmacies across the country by significant distribution chains as Salcobrand, Knop, and Bioformula.
Unfortunately, those medicines require physician prescriptions and are too expensive for ordinary people. Generic formulations can cost up to $120 USD, and registered
medicines can cost considerably more; neither generic formulations nor registered drugs are covered by public insurance.

In early 2017, the Chilean firm, Alef Biotechnology, which partnered with the Canadian licensed producer, Tilray, received the approval to import 600 bottles of 25-
milliliter cannabis drops. Two varieties of these drops were imported: TC100 (which has 5 milligrams of THC and 5 milligrams of CBD per milliliter) and T100 (which
has 10 milligrams of THC and 0 milligrams of CBD per milliliter). The drops were initially sold under special prescription in select pharmacies in Santiago, and then,
they eventually became available across the country. They are considered non-registered pharmaceutical products.

Therefore, with the legalization of cannabis cultivation for medicinal use and new business partnerships and expansions, the market is expected to grow significantly in
Chile in the coming years.

Peru
Revenue in USD billion, Peru, 2016-2026
Mordor Intelligence

The Peruvian cannabis market was valued at USD 0.32 billion in 2020, and it is anticipated to reach USD 0.69 billion by 2026, registering a CAGR of 12.0% during the
forecast period (2021-2026).

The growth of marijuana consumption is on the rise in Peru in recent years. The Ministry of Health bought 10 liters of CBD oil, with an almost 5% concentration, from
Anden Naturals, in 2019. The Oregon-based company won the bid after the ministry agreed to pay USD 8,390 (below the market price) for the supply. The supply was
sold in Digemid (the state's Directorate General of Drug Supplies and Drugs) pharmacies to patients with medical marijuana prescriptions, at USD 47.70 per 10-milliliter
bottles.

Cannabis & Co is a Peruvian firm that plans to opencannabis-focused drug stores across the country. It will not only sell the product, but the founder hopes that the retail
space will also educate people. Greenspot Biomedical Per SAC is a subsidiary of Greenspot Biomedical Inc., based in Canada.

The company intends to plant up to 150 hectares of cannabis and is assessing the regions of Ica, Lambayeque, and Piura in order to meet local and regional demand. The
company plans to invest USD 35 million, with 20% of that going toward putting up traceability logistics from seed to final product.

The low cost of land, low level of investment required, and the nearly year-round growing season give cultivators an opportunity to open businesses in Peru to produce
cannabis and cannabis products. Companies, such as Canopy Growth Corporation, Cannabis & Co., Greenspot Biomedical Perú SAC, and Anden Naturals, are operating
in the market.

The competition facilitates the availability of the products to patients and benefit them with a lower price, which protects the civil society and encourages investments in
Peru, thereby driving the market growth.

Rest of South America

Revenue in USD billion, Rest of South America, 2016-2026

Mordor Intelligence

The Rest of South America cannabis market was valued at USD 0.31 billion in 2020, and it is anticipated to reach USD 0.64 billion by 2026, registering a CAGR of
12.3%, during the forecast period (2021-2026).

In South America, some form of medical cannabis is allowed in Brazil, Chile, Colombia, Paraguay, and Uruguay. With the rise of medical and legal recreational
cannabis use worldwide, South American countries have become targets for international investors looking to develop plantations for export and manufacturing.

The Uruguayan government chose three companies to grow recreational marijuana for commercial purposes in 2019. To meet a shortfall of adult-use cannabis, the
Uruguayan Institute for the Regulation and Control of Cannabis (IRCCA) selected Uruguay Biopharmaceutical Research Co., based in the United States, Jabelor SA,
based in Uruguay and Legiral SA, based in Uruguay.

In addition, the Colombian Cannabis Sector is witnessing vast amounts of commercial success in recent years, with the benefits for the development of the medical
cannabis, including the existence of an adequate legal framework, lower production costs and lighting conditions, a good and productive infrastructure, and low cost of
inputs and labor.

Colombia's Law 1787, enacted in July 2016, legalized the distribution of cannabis license for medical purposes. These advances enabled the Colombian state to assume
control and regulation of the production, cultivation, and manufacturing of cannabis and its derivatives for medicinal and scientific purposes.

Despite the coronavirus pandemic, new legislation and business partnerships gave South American countries a boost in the cannabis market. Pharmin entered a
partnership with the Brazilian strategic regulatory company, ReMederi, to bring its high-quality cannabis products to the Brazilian market from January 2021. Therefore,
the aforementioned factors are anticipated to contribute to the immense market growth in the recent years.

Middle East & Africa

Revenue Share (%), Middle East & Africa, 2020
Mordor Intelligence Export Table To Excel
CAGR (%) 2021-
Middle East & Africa 2016 2017 2018 2019 2020 2021E 2026F
2026
South Africa 0.43 0.47 0.51 0.56 0.63 0.7 1.26 12.5
Rest of Middle East &
0.24 0.25 0.28 0.31 0.33 0.37 0.65 12.1
Africa
Total 0.67 0.72 0.79 0.87 0.96 1.07 1.91 12.3
South Africa
Revenue in USD billion, South Africa, 2016-2026

Mordor Intelligence

The South Africa cannabis market was valued at USD 0.63 billion in 2020 and is anticipated to reach USD 1.26 billion by 2026, registering a CAGR of 12.5% during the
forecast period (2021-2026).

In South Africa, requirements regarding permits and licenses to produce and sell cannabis are currently onerous and legal advice is a necessity in order to participate in
this sector. South Africa permits the cultivation of medical cannabis. A license for cannabis production can be obtained, but the processes for its provision are stringent.

In 2018, the Constitutional Court legalized the private use of cannabis in South Africa, upholding the Western Cape High Court's 2017 ruling, which found that the
criminalization of the private use of cannabis was unconstitutional.

Most of South Africa's climate is favorable to cannabis cultivation. The plant likes warm and sunny weather and does not do so well in the cold. Certain cannabis strains
can also thrive in extreme heat. Some growing techniques such as dry farming allow farmers to grow the crop using mostly rainfall with minimal additional watering if
the climate conditions are right. Drip irrigation is also a cheap and efficient way to water cannabis crops in South Africa.

South Africa, with its favorable climate conditions and proximity to Europe, seems well placed to cater to the growing European market for medical cannabis. Unlike
Canada or the Netherlands, where the cold climate requires cannabis to be grown in resource intensive greenhouses,cannabis in South Africa can be cultivated outdoors
in open fields. Indeed, several American and Canadian companies have already set up or expressed interest in setting up farms and processing plants on the continent,
despite the flourishing cannabis cultivation industry in their home countries.

Recently, in August 2021, South Africa's government unveiled a master plan aimed at harnessing a 28-billion-rand (USD 1.9 billion) cannabis industry for creating
diversification of the economy and a step towards increasing the economic growth of the country. This is further anticipated to boost the domestic market during the
forecast period.

Rest of Middle East & Africa

Revenue in USD billion, Rest of Middle East & Africa, 2016-2026
Mordor Intelligence

The rest of Middle East & Africa region cannabis market was valued at USD 0.33 billion in 2020 and is anticipated to reach USD 0.65 billion by 2026, registering a
CAGR of 12.1% during the forecast period (2021-2026).

There is an increasing demand for cannabis to treat disorders and associated health conditions, and there has been increased attention to the public health aspects of
cannabis use and related disorders. This has led many governments to considercannabis cultivation.

In 2017, Lesotho became the first country on the African continent to grant an administrative license for the commercial cultivation of marijuana for medical and
scientific purposes. Since then, several countries have followed suit, including Zimbabwe, Malawi, eSwatini, Zambia, Uganda, and Rwanda. Ghana has also authorized
cannabis production, but only for varieties with THC levels of 0.3% or less.

In the Middle East, Lebanon became the first Arab country to legalize cannabis for medical and industrial use in 2020. Lebanon legalized medicalcannabis for
cultivation and export as well. The Lebanese Parliament legalized the medicinal use of cannabis to bolster the export that can help revive the country's economy. Also, in
2018, the UN Office on Drugs and Crime (UNODC) ranked Lebanon in the world's top five producers of cannabis. The new law aims to regulate existing cultivation
while making the drug's medical and industrial use legal. This move would help the Lebanese government to revive the agricultural sector after the legalized cultivation
of marijuana.

Israel, in 2020, had set a road map to legalize cannabis potentially within one year to create a regulated market for adult-use marijuana products largely based on
Canada's legalization model.

Furthermore, Abu Dhabi-based law firm Wasel & Wasel set up the first medical cannabis legal practice in the Middle East in 2020. Companies such as ConnOils LLC
and Aphria dominate the market in the region. The importance of cannabis in treating a wide range of medical disorders resulted in its acceptance. This is anticipated to
boost the market growth.

Any redistribution of this information is strictly prohibited.

Copyright © 2021 EMIS, all rights reserved.
An ISI Emerging Markets Group Company