Pharmaceutical Cannabis - Sri Lanka

Sri Lanka is projected to reach a revenue of US$1.65m in the Pharmaceutical Cannabis market by 2024.
The country is expected to experience an annual growth rate (CAGR 2024-2029) of 2.85%, leading to a market volume of US$1.89m by 2029.
When compared globally, the United States will generate the highest revenue in 2024, amounting to US$913.10m.
In terms of per person revenues in 2024, in Sri Lanka sees US$3.19k.
Sri Lanka's pharmaceutical cannabis market is gaining traction, with a growing interest in research and development for potential medical applications.

Definition:
The Pharmaceutical Cannabis market encompasses products derived from the cannabis plant specifically used for medical purposes. These products may include dried flowers, oils, tinctures, capsules, and topicals. Depending on the regulations in each country or state, these products are available through medical dispensaries, pharmacies, and/or online platforms. They may be consumed in various ways such as smoking, vaporizing, ingesting, or applying topically.

Structure:
The Pharmaceutical Cannabis market encompasses formulated, processed, or synthetic cannabis sold as a finished product. These products, such as Sativex, Epidiolex, and Dronabinol, have undergone full medical trials and hold a medical marketing authorization. The market also includes cannabinoid-based API (Active Pharmaceutical Ingredient), which is registered as an API in a medicinal product with marketing authorization in one or more regions. These APIs can be manipulated and/or compounded by a magistral pharmacy to produce a cannabinoid-based medicine. The Pharmaceutical Cannabis market includes various forms of cannabis such as flowers, oils, capsules, and topicals.

Additional information:
Market values represent the revenues generated by retail prices paid to vendors, either directly or through distribution channels (excluding VAT). Reported market revenues include spending by patients (B2C), healthcare facilities (B2B), and governments (B2G).

Cannabinoid-based medicine holding marketing authorisation containing THC
Cannabinoid-based medicine holding marketing authorisation containing CBD

Cannabinoid-based medicine not holding marketing authorisation containing THC
Cannabinoid-based medicine not holding marketing authorisation containing CBD

Amidst changing regulations and increasing awareness about the potential benefits of pharmaceutical cannabis, the market in Sri Lanka is experiencing notable growth.

Customer preferences: Customers in Sri Lanka are increasingly seeking alternative and natural remedies for various health conditions, leading to a growing demand for pharmaceutical cannabis products. The shift towards organic and plant-based treatments is driving consumers to explore cannabis-based pharmaceuticals as a viable option.

Trends in the market: One of the key trends in the pharmaceutical cannabis market in Sri Lanka is the gradual acceptance and legalization of medical cannabis for certain medical conditions. This has opened up opportunities for pharmaceutical companies to introduce a variety of cannabis-based products to cater to the local market. Additionally, the increasing research and development activities focusing on the medical benefits of cannabis are shaping the market landscape in the country.

Local special circumstances: Sri Lanka's unique geographical location and climate provide ideal conditions for cultivating cannabis plants, making it a potential hub for pharmaceutical cannabis production. The traditional use of medicinal herbs in Sri Lankan culture also contributes to the growing acceptance of cannabis-based pharmaceuticals among the local population. Moreover, the government's efforts to regulate and legalize the pharmaceutical cannabis market are creating a conducive environment for industry growth.

Underlying macroeconomic factors: The evolving regulatory framework and government policies play a crucial role in shaping the pharmaceutical cannabis market in Sri Lanka. As the legal barriers around medical cannabis continue to relax, more pharmaceutical companies are entering the market to capitalize on the growing demand. Additionally, the economic potential of pharmaceutical cannabis, both domestically and for export purposes, is attracting investments and fostering market expansion in the country.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on companies' revenues, funding values and global consumer survey data. Revenues include retail, sales and taxes.

Modeling approach / Market size:

Market sizes are determined by a Top-Down approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use financial reports, third-party data. Next, we use relevant key market indicators and data from country-specific associations such as tobacco spending per capita, medical product spending per capita, consumer spending and consumer spending for recreation purposes, population. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, S-Curve function, ARIMA time series model and exponential curve function.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. GCS data is reweighted for representativeness.

Cannabis or marijuana, the psychoactive drug from the cannabis plant is growing in popularity around the globe, both for recreational and medicinal uses. While there are many countries that have legalized cannabis in some capacity for medical purposes, only a handful have done so for recreational use. Even though cannabis is not federally legal in the United States, the combined legal states represent the largest market in the world. After the U.S., Canada, which legalized cannabis nation-wide in 2018 represents the next largest market. In 2021, a new coalition government was formed in Germany that indicated that the legalization of cannabis was on their agenda. Germany would be the largest legal adult-use market in Europe and would act as a test case for other countries on the continent considering the merits of legalization.