India Cannabis Product Market Assessment, By Product Type [Edibles, Capsules/Tablets, Raw Extracts, Powder Mixes, Fluid Topicals, Others], By Application [Medicinal, Food and Nutrition, Tobacco, Personal Care, Fashion and Accessories, Pet Products, Others

India Cannabis Product Market Assessment, By Product Type [Edibles, Capsules/Tablets, Raw Extracts, Powder Mixes, Fluid Topicals, Others], By Application [Medicinal, Food and Nutrition, Tobacco, Personal Care, Fashion and Accessories, Pet Products, Others], By Distribution Channel [Online; Offline-Pharmacies/Drug Stores, Flagship/Brand Stores, Hotels, Spa and Wellness Centres, Derma/Skin Care Clinics, Others], By Region, Opportunities, and Forecast, FY2017-FY2031F

The India Cannabis Product market size was estimated to be USD 1.12 billion in FY2023 and is projected to reach USD 3.44 billion in FY2031, growing at a CAGR of 17.34% during the forecast period FY2024-FY2031. The market is being driven by factors such as increasing demand of cannabis for medical use coupled with government initiatives to legalize its usage in medical sector in the country. A traditional use of cannabis in ayurvedic medicine also adds to the list of drivers fuelling the market growth of cannabis in India.

Cannabis sativa plants yields three types of cannabis: herbal cannabis, which is made from leaf extracts and flowering tops also referred to as ""cannabis,"" ""ganja,"" or ""weed""; cannabis resin, which is made from pressing the plant's secretions is called ""charash""; and cannabis oil, which is a mixture made from the distillation or extraction of the plant's active components. Our country being one of the largest consumer marketplaces in the world, is a natural fit for a crop like cannabis which is indigenous to the country which offers a great potential to turn cannabis market into a big industry.

Increasing Demand of Cannabis for Medical Usage

Cannabis has been used in traditional medicine in India for centuries, and recent research has shown that it may have potential therapeutic benefits for a range of medical conditions, including pain, inflammation, anxiety, and epilepsy. In 2018, the Indian government approved the use of medical cannabis under certain conditions, but the regulations surrounding its use are still unclear. In 2020, the state of Jammu and Kashmir approved a policy to legalize the cultivation and use of cannabis for medicinal purposes. Other states, such as Maharashtra and Uttarakhand, have also expressed interest in legalizing medical cannabis.

Conventional Use of Cannabis in Ayurvedic Medicine

Cannabis has been used in Ayurvedic medicine in India for centuries. In Ayurvedic medicine, cannabis is believed to have a balancing effect on the body's energy and is used to treat imbalances in the doshas (vata, pitta, and kapha). The plant is considered to have a heating and drying effect on the body, making it particularly useful for treating conditions that are associated with excess moisture or dampness. The usage of cannabis in ayurveda gives opportunities to treat neuro problems and other lifestyle disorders making it a more legitimate natural alternative to heavy opioids or drugs.

Government Initiatives to Legalize Cannabis for Medical Use

There have been ongoing government initiatives to legalize and regulate the medical and industrial use of cannabis. In 2018, the Indian government legalized the cultivation of hemp for industrial and medical purposes. Hemp cultivation is regulated by the Narcotics Control Bureau (NCB) and requires a license from the government. In 2020, the Indian Council of Medical Research (ICMR) recommended the use of cannabis-based medicines for certain medical conditions, such as epilepsy, cancer, and sickle cell anaemia. However, these recommendations have not yet been adopted into law. There is also a growing movement in India to legalize cannabis for recreational use, with several political parties and advocacy groups calling for reform.

Impact of COVID-19 on India Cannabis Product Market

The widespread COVID-19 had a significant impact on the Indian cannabis market. During the pandemic, the Indian government imposed strict lockdown measures, which disrupted supply chains and caused a shortage of cannabis products. The restrictions also forced many cannabis farmers to halt production, resulting in a decline in the overall supply of cannabis in the country.

Key Player Landscape and Outlook

The combination of changing attitudes, economic potential, and a practice of cannabis use in traditional medicine are driving the cannabis market in India. However, it is important to note that cannabis remains illegal in India and there are still significant legal and regulatory hurdles that must be overcome before the market can fully develop.

For example, Boheco is focussed on developing a scale-centric approach for industrial hemp-based goods and raw materials along with cannabis-based pharmaceuticals. Additionally, the company is making significant efforts to create a value chain for the growth of cannabis-based medicines in India.