Middle East and Africa Cannabis Market Size, Share and Trends Analysis Report – Industry Overview and Forecast to 2032

Middle East and Africa Cannabis Market Size

• The Middle East and Africa cannabis market size was valued at USD 15.64 billion in 2024 and is expected to reach USD 84.67 billion by 2032, at a CAGR of 23.50% during the forecast period
• The market growth is largely fuelled by the increasing legalization of medical and recreational cannabis in multiple regions, rising awareness of the therapeutic benefits of cannabis, and growing consumer demand for cannabis-based wellness products
• In addition, drivers include advancements in cannabis cultivation and extraction technologies, increasing investments by pharmaceutical and consumer goods companies, and the expanding range of cannabis-derived products such as oils, edibles, and topicals

Middle East and Africa Cannabis Market Analysis

• The global cannabis market is witnessing strong growth due to progressive regulatory changes and increasing acceptance of both medical and recreational use in key markets
• Pharmaceutical applications, including pain management, mental health treatments, and chronic disease therapies, are driving the adoption of cannabis-based products
• Saudi Arabia cannabis market holds the largest revenue share in the Middle East and Africa region, primarily driven by strict medical cannabis regulations and controlled import policies. Demand is concentrated in pharmaceutical and wellness applications, with regulated CBD and THC formulations increasingly adopted
• ​South Africa is expected to witness the highest compound annual growth rate (CAGR) in the Middle East and Africa cannabis market due to expanding cultivation infrastructure, rising awareness of medicinal cannabis, and favorable government policies promoting industry growth
• The Flowers segment held the largest market revenue share in 2024, driven by consumer preference for traditional consumption methods and high demand in both medicinal and recreational use. Flower products are often favored for their versatility in dosing, ease of use, and cultural familiarity, making them a popular choice among adult consumers and patients

Report Scope and Middle East and Africa Cannabis Market Segmentation           

Middle East and Africa Cannabis Market Trends

“Rising Adoption of Medical and Recreational Cannabis Products”

•  The increasing legalization of medical and recreational cannabis is transforming the global cannabis market by enabling wider access to cannabis-based treatments and wellness products. This expansion allows consumers and healthcare providers to make timely choices regarding treatment and personal wellness
•  The high demand for ready-to-use cannabis products such as oils, edibles, and topicals is accelerating adoption, particularly in regions where traditional pharmaceutical or wellness-grade cannabis access was limited. These products offer convenience, standardized dosing, and enhanced safety for consumers
•  The affordability, consistency, and ease of use of modern cannabis products are making them attractive for both medicinal and recreational use, resulting in broader acceptance and adoption. Consumers benefit from increased accessibility without navigating complex regulatory or supply challenges
•  For instance, in 2023, several wellness companies have reported higher patient adherence to cannabinoid-based therapies after introducing pre-measured oil tinctures and edible formulations, which allow for precise dosing and improve treatment outcomes. This approach has also helped standardize care and enhance overall product safety
•  While the market is expanding rapidly, its growth depends on continued product innovation, regulatory clarity, and education. Manufacturers must focus on localized development, consumer awareness, and safe usage practices to fully capitalize on this growing demand

Middle East and Africa Cannabis Market Dynamics

Driver

“Rising Consumer Awareness and Health-Focused Adoption”

•  Increasing awareness about the therapeutic benefits of cannabis is prompting both governments and private players to prioritize its integration into healthcare and wellness sectors. Conditions such as chronic pain, anxiety, and sleep disorders are driving interest in cannabinoid-based interventions. This trend is also fueling investment in research and development of novel formulations to meet growing medical demand
•  Consumers are increasingly aware of the potential health benefits and financial implications of using regulated cannabis products over unregulated alternatives. This has encouraged regular usage, especially among wellness-conscious populations. In addition, demand for standardized, lab-tested products is rising to ensure safety, efficacy, and legal compliance
•  Public sector initiatives, research grants, and educational campaigns are strengthening market credibility and encouraging adoption. From policy reforms to medical cannabis programs, supportive frameworks are helping consumers and patients make informed choices. These programs are also assisting healthcare professionals in integrating cannabis-based treatments into standard therapeutic protocols
•  For instance, in 2022, expansion of medical cannabis access in multiple markets has boosted demand for standardized oils, capsules, and other formulations across clinics and pharmacies. Such growth has encouraged partnerships between producers and distributors to improve accessibility and ensure consistent patient adherence
•  While awareness and institutional support are fueling market growth, there remains a need to improve consumer education, address stigma, and ensure consistent quality to sustain long-term adoption. Continuous training programs and awareness campaigns are required to build trust and encourage responsible usage across diverse demographic groups.

Restraint/Challenge

“Regulatory Complexity and High Costs of Quality Cannabis Products”

•  The regulatory landscape for cannabis remains complex and fragmented across regions, making compliance expensive and time-consuming for manufacturers. Licensing, testing, and quality assurance requirements contribute to high product costs, limiting access for price-sensitive consumers. This complexity often slows product launches and discourages small and medium enterprises from entering the market
•  Many regions lack adequate infrastructure for production, distribution, and retail, which restricts consistent product availability. Smaller producers and dispensaries face barriers in scaling operations due to compliance burdens and capital requirements. In addition, logistics challenges such as temperature-controlled transport and secure storage further increase operational costs
•  Market penetration is also hindered by consumer hesitancy and cultural stigma in regions where cannabis adoption is still emerging. This can slow demand and delay the expansion of legal supply chains. Misconceptions about safety, efficacy, and legal risks continue to affect adoption rates, even in regions with progressive policies
•  For instance, in 2023, reports have highlighted that a significant portion of potential consumers are unable to access licensed cannabis products due to high prices and restrictive regulations. The lack of affordable, standardized products is limiting both medicinal and recreational uptake, leaving a large untapped market
•  While product innovation and market legalization continue, addressing regulatory hurdles, pricing, and infrastructure gaps is crucial. Stakeholders must focus on cost-effective production, distribution networks, and clear guidelines to unlock the market’s full potential. Strategic collaborations between governments, producers, and distributors are also essential to create sustainable growth and equitable access

Middle East and Africa Cannabis Market Scope

The market is segmented on the basis of product type, compound, crop variety, application, and distribution channel.

• By Product Type

On the basis of product type, the Middle East and Africa cannabis market is segmented into Flowers, Concentrates, and Other Product Types. The Flowers segment held the largest market revenue share in 2024, driven by consumer preference for traditional consumption methods and high demand in both medicinal and recreational use. Flower products are often favored for their versatility in dosing, ease of use, and cultural familiarity, making them a popular choice among adult consumers and patients.

The Concentrates segment is expected to witness the fastest growth rate from 2025 to 2032, driven by their higher potency, convenient dosing formats, and increasing adoption in modern wellness and therapeutic applications. Concentrates such as oils, tinctures, and extracts are particularly appealing for medical users seeking precise cannabinoid intake and for consumers looking for more discreet and controlled consumption methods.

• By Compound

On the basis of compound, the market is segmented into Tetrahydrocannabinol (THC)-dominant, Cannabidiol (CBD)-dominant, and Balanced THC and CBD. The CBD-dominant segment held the largest revenue share in 2024 due to growing awareness of its therapeutic benefits without psychoactive effects. CBD products are widely used for wellness, pain management, and anxiety relief, supporting their strong adoption across the region.

The THC-dominant segment is expected to witness the fastest growth rate from 2025 to 2032, driven by rising acceptance of recreational cannabis and demand for products with psychoactive effects. THC-dominant formulations are also seeing increasing interest in regulated markets for medical applications such as chronic pain and appetite stimulation.

• By Crop Variety

On the basis of crop variety, the market is segmented into Cannabis Indica, Cannabis Sativa, and Others. Cannabis Sativa held the largest revenue share in 2024, supported by its stimulating effects and higher THC content, which appeals to recreational users and certain medical applications. Sativa-based products are increasingly incorporated into oils, edibles, and vape formulations for versatile consumption.

The Cannabis Indica segment is expected to witness the fastest growth rate from 2025 to 2032, driven by its relaxing effects and use in medical treatments for insomnia, anxiety, and chronic pain. Indica varieties are often preferred for evening or therapeutic consumption, contributing to steady market adoption.

• By Application

On the basis of application, the market is segmented into Medical and Recreational. The Medical segment dominated the market in 2024, propelled by increasing legalization of medical cannabis, rising patient awareness, and growing acceptance among healthcare providers. Medical cannabis is primarily used for managing chronic pain, neurological disorders, and other therapeutic purposes, ensuring consistent demand.

The Recreational segment is expected to witness the fastest growth rate from 2025 to 2032, fueled by expanding legalization, lifestyle adoption, and demand for wellness-oriented recreational products. Recreational use is increasingly supported by social acceptance and the availability of diverse product formats such as edibles, concentrates, and pre-rolled options.

• By Distribution Channel

On the basis of distribution channel, the market is segmented into Physical, Digital, and Others. The Physical segment held the largest market revenue share in 2024, driven by well-established dispensaries, specialty stores, and pharmacies offering in-person consultations and product selections. Physical stores remain important for consumer trust, immediate availability, and education on safe usage.

The Digital segment is expected to witness the fastest growth rate from 2025 to 2032, supported by rising e-commerce adoption, mobile ordering, and delivery services in regulated markets. Online platforms provide convenience, discrete purchasing options, and access to a wider variety of products, making them increasingly attractive for tech-savvy consumers.

Middle East and Africa Cannabis Market Regional Analysis

• Saudi Arabia cannabis market holds the largest revenue share in the Middle East and Africa region, primarily driven by strict medical cannabis regulations and controlled import policies. Demand is concentrated in pharmaceutical and wellness applications, with regulated CBD and THC formulations increasingly adopted
• Investments in licensed distribution networks and clinical research are strengthening market infrastructure and supporting growth

South Africa Cannabis Market Insight

The South Africa cannabis market is expected to witness the fastest growth during the forecast period, fueled by progressive legalization, rising medicinal adoption, and growing export opportunities. Local cultivation initiatives and partnerships with international manufacturers are accelerating market development. Improved regulatory frameworks and increasing awareness of therapeutic benefits are driving expansion across both medical and recreational segments.

Middle East and Africa Cannabis Market Share

The Middle East and Africa cannabis industry is primarily led by well-established companies, including:

• Cilo Cybin (South Africa)
• CannaMed (South Africa)
• Medigrow (South Africa)
• CannAfrica (South Africa)
• PharmaCielo (South Africa)
• Bodhi Khaya (South Africa)
• Sativa Group (South Africa)
• Cannabics Pharmaceuticals (Israel)
• Tikun Olam (Israel)
• Seach Medical Group (Israel)

SKU-44689