Cannabis Pharmaceuticals Market Size, Share Report, Analysis, Trends, Growth, 2030

Cannabis Pharmaceuticals Industry Prospective:

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.

Request Free Sample

Cannabis Pharmaceuticals Market: Overview

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.

Key Insights:

• As per the analysis shared by our research analyst, the global cannabis pharmaceuticals market is estimated to grow annually at a CAGR of around 50.95% over the forecast period (2023-2030)
• In terms of revenue, the global cannabis pharmaceuticals market size was valued at around USD 1,205.60 million in 2022 and is projected to reach USD 32,506.40 million, by 2030.
• The cannabis pharmaceuticals market is projected to grow at a significant rate due to the increasing acceptance of cannabis in the medical fraternity
• Based on distribution channel segmentation, hospitals were predicted to show maximum market share in the year 2022
• Based on product segmentation, Epidiolex was the leading segment in 2022
• Based on region, Europe was the leading revenue generator in 2022

Request Free Sample

Cannabis Pharmaceuticals Market: Growth Drivers

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.

Cannabis Pharmaceuticals Market: Restraints

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.

Cannabis Pharmaceuticals Market: Opportunities

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.

Cannabis Pharmaceuticals Market: Challenges

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.

Cannabis Pharmaceuticals Market: Segmentation

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: Report Scope

Cannabis Pharmaceuticals Market: Regional Analysis

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.

Cannabis Pharmaceuticals Market: Competitive Analysis

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)
• Charlotte's Web Holdings

The global cannabis pharmaceuticals market is segmented as follows:

By Distribution Channel

• Online Pharmacies
• Hospitals
• Others

By Product

• Sativex
• Cesamet
• Marinol
• Epidiolex

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa