India is witnessing a surge in the cannabis wellness market, driven by increasing acceptance, clearer regulations, and the rise of direct-to-consumer (D2C) brands. This growth is fueled by a growing interest in cannabis-based products for mental health and overall well-being. While the market holds significant economic potential, experts are voicing concerns regarding marketing claims and consumer safety, emphasizing the need for stricter oversight and informed consumer choices.
Cannabis has deep roots in India's traditional medicine systems, with ancient Ayurvedic texts recognizing its therapeutic properties for pain relief, stress reduction, and sleep improvement. Modern science is now rediscovering these benefits, leading to a resurgence of medical cannabis as a holistic wellness solution.
The Indian cannabis product market was estimated at USD 1.3 billion in FY2024 and is projected to reach USD 4.7 billion by FY2032, growing at a CAGR of 17.34% during the forecast period. Globally, the medical cannabis market is expected to reach $20.24 billion by 2024. This growth is attributed to the increasing demand for cannabis in medical applications and government initiatives to legalize its use in the medical sector, coupled with its traditional use in Ayurvedic medicine.
Several factors contribute to this boom. The rise of D2C brands has made cannabis products more accessible to consumers. These brands often leverage online platforms to sell their products, offering convenience and detailed information about the benefits and usage of cannabis. For instance, Calmosis Vedic Wellness Private Limited announced online delivery of Ayurvedic cannabis products for stress relief, sleep promotion, and pain relief. Awshad, a South Delhi-based medical cannabis wellness startup, is marking its third anniversary with impressive growth, reporting a 30% revenue increase over the past year and expecting an additional 40% rise by year's end. Their customer base has expanded by 60%, driven by high-quality, clinically tested products.
States like Uttarakhand, Uttar Pradesh, Himachal Pradesh, and Madhya Pradesh have initiated or proposed regulated cannabis cultivation for scientific and medical uses. These policy developments signify a shift in attitude and highlight cannabis's potential as a source of innovation, income, and improved healthcare.
However, the rapid growth of the cannabis wellness market also raises concerns. Experts emphasize the need for stricter oversight and regulation to ensure product quality and consumer safety. There are worries about unsubstantiated marketing claims and the potential for misuse of cannabis products. Clear and transparent policies are needed to address these concerns and promote responsible growth in the sector.
Despite these challenges, the cannabis wellness market presents significant opportunities for India. It can revolutionize the wellness space by introducing plant-based, science-backed solutions to mainstream healthcare. Cannabis-based products are carving out new niches in overall well-being, from managing stress and improving sleep to relieving pain and coping with anxiety. The industrial cannabis market is expected to grow at a CAGR of 24.3% from 2022 to 2027, boosting market value from $27.7 billion in 2022 to $82.3 billion by the end of 2027.
Moreover, regulated cannabis farming can offer a sustainable revenue stream for Indian farmers, particularly in states exploring its cultivation. Hemp is already being used in textiles, wellness products, and building materials. With its vast biodiversity, agricultural heritage, low-cost labor, and favorable climate, India has the potential to become a global leader in cannabis exports.
