|Market Size in 2022
|Market Forecast in 2030
|CAGR (in %)
|USD 1,205.60 Million
|USD 32,506.40 Million
Cannabis Pharmaceuticals Market
The global cannabis pharmaceuticals market size was worth around USD 1,205.60 million in 2022 and is predicted to grow to around USD 32,506.40 million by 2030 with a compound annual growth rate (CAGR) of roughly 50.95% between 2023 and 2030.
Cannabis pharmaceuticals refers to the development and sale of pharmaceutical drugs or medicines with compounds of cannabis plants acting as key components. The plant belongs to the Cannabaceae family of flowering plants and produces a highly popular psychoactive drug called marijuana or cannabis. The plant is indigenous to South and Central Asia. It is widely used as a recreational drug. However, in recent times, the pharmaceutical industry has invested heavily in exploring the plant and its components for their medicinal attributes. Two of the most well-researched and popular components are cannabidiol (CBD) and tetrahydrocannabinol (THC) since they are known to exhibit several therapeutic effects.
Cannabis pharmaceuticals deal with exploring a combination of cannabinoids and studying their impact on diseases or health conditions under a controlled environment and in the guidance of a licensed supervisor such as a medical practitioner. Medicines produced using cannabis are available in several forms including sprays, capsules, and tablets. The medicines cannot be rolled out in the commercial market without receiving necessary approvals from regulatory bodies. The cannabis pharmaceuticals industry is one of the most rigorously regulated sectors since consuming the medicines in unsupervised conditions can lead to severe consequences.
Increasing acceptance of cannabis in the medical fraternity to drive market growth
The global cannabis pharmaceutical market is expected to grow owing to the increasing acceptance and interest of cannabis in the medical fraternity across the globe. In recent times, extensive research has been conducted by pharmaceutical giants and research companies to obtain more information on the medical impact of cannabis and medicines derived from it. For instance, a recent study published in the National Library of Medicine provides extensive information on the effects of CBD in treating several gastrointestinal disorders such as inflammatory bowel disease (IBD), irritable bowel syndrome (IBS), and Crohn’s disease. It can be used for symptom prevention and cure.
In addition to this, years of research have been directed toward treating conditions such as epilepsy using CBD. As per the World Health Organization (WHO), more than 50 million people across the globe are currently dealing with epilepsy. It is considered the most common neurological medical condition. These factors along with other benefits exhibited by controlled consumption of cannabis-based pharmaceutical drugs have assisted in a higher market growth rate.
Potential anti-cancer effects of cannabis to attract more attention
Recently, multiple studies and clinical trials have been conducted to learn if cannabis pharmaceuticals can be used for treating cancer. The early results indicate that cannabis drugs are safe for treating cancer since they have several anti-cancer properties. Furthermore, researchers also claim that the medicines can induce cell death and prevent further growth. The urgent need for developing efficient cancer medicines could lead to higher revenue in the global cannabis pharmaceuticals market as the disease has become one of the leading causes of death globally.
Prohibition against cannabis consumption in all forms across several countries to limit market expansion
The global cannabis pharmaceuticals industry is expected to be limited by the prohibition of cannabis consumption in all forms including medicinal or drug format in several countries across the globe. Cannabis production, distribution, and use is one of the most strongly regulated industries due to the potential and dangerous impact of unregulated cannabis consumption. For instance, cannabis is known to cause learning and cognitive impairment. Moreover, it can also lead to serious addiction and dependence.
Increasing launch of novel cannabis-derived pharmaceutical medicines to create expansion possibilities
The global cannabis pharmaceuticals market is expected to come across several growth opportunities due to the increasing launch of novel drugs with positive health impacts. In September 2023, MediPharm Labs Corporation announced the launch of Canadian-produced Good Manufacturing Practice (GMP) Beacon Medical inhalation cartridges and cannabis oil in the Australian market. MediPharm is a pharmaceutical company that specializes in precision-based cannabinoids.
In January 2018, the United States (US) Food and Drugs Administration (FDA) authority had approved the use of marijuana-derived active ingredients in a first-of-its-kind approval. The medicine is allowed to be used for treating severe and rare forms of epilepsy including Dravet syndrome and Lennox-Gastaut syndrome.
Rising legalization of medicines obtained from cannabis will encourage more players to experiment
Since cannabis pharmaceuticals have shown specific positive results, a growing trend of cannabis-derived medicine legalization can be observed worldwide. In December 2023, Japan passed a bill that provided legal status to medical substances and products with cannabis as a critical ingredient. The country designated THC and cannabis as narcotics and the revised law is expected to come into force within 1 year. Presently, cannabis is legalized in countries such as Canada, the USA, Portugal, Spain, Mexico, and South Africa among others.
Managing quality and excessive standardization processes may challenge market expansion
The global cannabis pharmaceuticals industry market faces challenges in terms of maintaining the quality of the products. As directed by regulatory agencies, cannabis pharmaceuticals have to be thoroughly tested for efficiency and side effects before being released into the medical world. Furthermore, stringent standardization processes are likely to impact the development of new drugs.
The global cannabis pharmaceuticals market is segmented based on distribution channel, product, and region.
Based on distribution channels, the global market is divided into online pharmacies, hospitals, and others. In 2022, the highest growth was registered in the hospitals segment due to the higher number of patients visiting hospitals for severe medical conditions for which cannabis pharmaceuticals can be used. The growing access to medical care along with increased global healthcare expenditure are projected to help the segment continue its dominance during the forecast period. As per statistics reported by WHO, global healthcare expenses reached USD 9 trillion in 2022.
Based on product, the global market is segmented into Sativex, Cesamet, Marinol, and Epidiolex. In 2022, more than 97.52% of the segmental revenue was led by the Epidiolex segment due to a higher sales rate. The regional demand for the brand is higher in Europe and the US market as the medicine has a potential impact on treating severe seizure-related conditions. The growing number of approvals for Epidiolex will help in sustaining the segmental growth trend.
|Cannabis Pharmaceuticals Market
|Market Size in 2022
|USD 1,205.60 Million
|Market Forecast in 2030
|USD 32,506.40 Million
|CAGR of 4.44%
|Number of Pages
|Key Companies Covered
|Cronos Group, GW Pharmaceuticals, Harvest Health & Recreation, Elixinol Global, Tilray, Cansortium Inc., Aurora Cannabis, Canopy Growth Corporation, Cresco Labs, MedReleaf Corp., CannTrust Holdings, Valens Company, OrganiGram Holdings, Aphria Inc., VIVO Cannabis Inc., Curaleaf Holdings, Hexo Corp., Columbia Care Inc., Green Thumb Industries (GTI), Charlotte's Web Holdings, and others.
|By Distribution Channel, By Product, and By Region
|North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)
|2017 to 2021
|2023 - 2030
|Avail customized purchase options to meet your exact research needs. Request For Customization
Legalization of cannabis across Europe to aid regional growth rate
The global cannabis pharmaceuticals market will be led by Europe during the forecast period. In 2022, the region contributed to more than 48% of the global market revenue mainly driven by the higher rate of legalization of cannabis pharmaceuticals across European countries. In November 2023, Rokshaw Laboratories, a leading pharmaceutical company in Europe, announced the launch of new cannabis products under the brand name Four20 in the UK market. The product portfolio consists of a broad range of medical cannabis products.
In October 2022, Neuraxpharm Group and Panaxia signed a Memorandum of Understanding (MoU). The former is a Europe-based leading specialty pharmaceutical company that focuses on the central nervous system (CNS) while the latter deals with the production and distribution of pharmaceutical-grade medical cannabis products. The companies will work together to explore new consumer groups in the Swiss and Czech markets. North America is a leading regional market for cannabis pharmaceuticals. The growing legal acceptance of cannabis medicines along with rising rates of FDA approvals are critical growth drivers in North America.
The global cannabis pharmaceuticals market is led by players like:
By Distribution Channel
Cannabis pharmaceuticals refers to the development and sale of pharmaceutical drugs or medicines with compounds of cannabis plants acting as key components.
The global cannabis pharmaceuticals market is expected to grow owing to the increasing acceptance and interest of cannabis in the medical fraternity across the globe.
According to study, the global cannabis pharmaceuticals market size was worth around USD 1,205.60 million in 2022 and is predicted to grow to around USD 32,506.40 million by 2030.
The CAGR value of cannabis pharmaceuticals market is expected to be around 50.95% during 2023-2030.
The global cannabis pharmaceuticals market will be led by Europe during the forecast period.
The global cannabis pharmaceuticals market is led by players like Cronos Group, GW Pharmaceuticals, Harvest Health & Recreation, Elixinol Global, Tilray, Cansortium Inc., Aurora Cannabis, Canopy Growth Corporation, Cresco Labs, MedReleaf Corp., CannTrust Holdings, Valens Company, OrganiGram Holdings, Aphria Inc., VIVO Cannabis Inc., Curaleaf Holdings, Hexo Corp., Columbia Care Inc., Green Thumb Industries (GTI), and Charlotte's Web Holdings among others.
The report explores crucial aspects of the cannabis pharmaceuticals market including detailed discussion of existing growth factors and restraints while also browsing future growth opportunities and challenges that impact the market.