Cannabinoid Therapeutics Market Size (2024 – 2030)

The Global Cannabinoid Therapeutics Market, valued at USD 27.37 billion, is anticipated to achieve a market size of USD 111.37 billion by the culmination of 2030. It is expected to exhibit growth at a CAGR of 22.2% during the forecast period spanning from 2024 to 2030.

Industry Overview:

Cannabis, sourced either from a marijuana plant or a chemical, is utilized in the treatment of various conditions and illnesses. While sharing similarities with recreational marijuana, its medicinal applications are equally significant.

Market Insights:

The cannabis drug market encompasses approximately 100 chemicals, known as cannabinoids, found in marijuana plants. The effects of cannabis and marijuana differ from individual to individual. Predominantly utilized in the medical realm are cannabidiol (CBD) and Delta9-tetrahydrocannabinol (THC). THC, notably, induces a sensation when smoked or consumed.

Medical marijuana serves as a remedy for various ailments, including but not limited to:

• Alzheimer's disease
• Multiple sclerosis
• Appetite loss
• Nausea
• Cancer
• Eating disorders such as appetite loss
• Epilepsy
• Glaucoma
• Crohn's disease
• Muscle cramps
• Pain
• Cachexia

Evidence suggests diverse effects of cannabis in the therapeutic domain, such as its potential to alleviate chronic pain, spasticity-induced vomiting and nausea, and its influence on memory, appetite, pain perception, and physical activity.

Owing to its therapeutic attributes, cannabis is undergoing legalization and decriminalization across several nations. For instance, countries such as the United States, Canada, the United Kingdom, Croatia, the Czech Republic, Cyprus, Colombia, Chile, Australia, Barbados, Denmark, Finland, Poland, and Portugal have legalized medicinal cannabis. Furthermore, ongoing political advocacy for cannabis legalization propels growth in the cannabis drug market.

For instance, in May 2021, US representatives reintroduced the MORE (Marijuana Opportunity, Reinvestment, and Elimination) Act in the US House of Representatives. Moreover, in December 2020, although previously passed by the House of Representatives, the MORE Act faced hurdles in the Senate. The anticipated passage of the MORE Act is likely to elevate the demand for cannabis products within the United States, consequently fostering growth in the pharmaceutical cannabis market.

It is anticipated that rising consumer acceptance will result in an augmented number of healthcare professionals prescribing cannabis products, thereby expanding market potential. Notably, the count of healthcare practitioners registered with Canadian licensed vendors surged from 6,700 in September 2019 to 7,781 by March 2021. Furthermore, burgeoning consumer adoption bolsters growth in the cannabis medical market, as evidenced by the Centers for Disease Control and Prevention's data indicating that 48.2 million individuals in the United States, representing 18% of the population, used marijuana at least once in 2019.

Impact of COVID-19 on Cannabinoid Therapeutics Market

The COVID-19 pandemic, accompanied by social distancing measures and lockdowns, has impacted industries worldwide. While the pandemic adversely affected sales across various product categories, the prominent cannabis drug brand Epidiolex witnessed positive sales growth. This upsurge can be attributed to heightened customer satisfaction and increased payer coverage, leading to notable spikes in legal cannabis sales during the 2020 COVID-19 pandemic.

For instance, according to Leafly, a renowned cannabis website, Americans spent $10.7 billion on cannabis and related products in 2019, a figure that escalated to $18.3 billion in 2020. Various governors in the United States have deemed cannabis an essential commodity. Additionally, numerous retailers and pharmacies have commenced offering cannabis products through online channels, projecting an optimistic outlook on market growth due to heightened consumption of cannabis products.

Pharmaceutical and biotechnology entities collaborate with governments globally to combat the COVID-19 outbreak, ranging from supporting vaccine development to addressing drug supply chain complexities. Presently, approximately 115 vaccine candidates and 155 molecules are under research and development (R&D).

Furthermore, widely used medications like hydroxychloroquine have experienced heightened demand for treating COVID-19. The surge in demand for such drugs presents substantial opportunities for COVID-19 pharmaceutical companies, particularly as several developed nations face shortages. Forecasts indicate that the demand for COVID-19 vaccines and therapeutics will catalyze significant growth within the pharmaceutical and biotechnology sectors, consequently impacting the cannabis medical market significantly.

Market Drivers:

The burgeoning legalization of Medicinal Cannabis in Economies and the expanding utilization of Cannabis in Pharmaceutical Products are pivotal drivers propelling market growth:

The progressive legalization of Medicinal Cannabis in Economies serves as a pivotal growth driver for the market. Notably, countries such as the United States and Germany are making significant strides in medicinal cannabis legislation. The substantial market size for these medicines in these prominent economies further propels market expansion.

The escalating awareness regarding the Benefits of Cannabis is another driving force. Cannabis has demonstrated remarkable therapeutic benefits, fueling its demand. Many patients suffering from conditions like Depression, Anxiety, and other medical ailments have reported improvements in their health following cannabis-based treatments. With approximately 60% of individuals experiencing Anxiety and Depression at least once in their lives, the potential therapeutic benefits of cannabis hold significant promise.

Market Restraints:

The exorbitant prices associated with Medical Cannabis and the occasional adverse health effects serve as notable constraints impeding market growth:

The high cost of Medical Cannabis has emerged as a crucial consideration, posing a challenge to widespread adoption. When purchasing medications, consumers often scrutinize prices and compare them with alternative brands offering similar solutions. The typically steep prices of cannabis-based medications render them inaccessible to certain segments of the population.

Instances of patients experiencing adverse side effects from cannabis or cannabis-derived medicines have further complicated their usage. Many individuals harbor apprehensions about using such products, with some becoming dependent on them post-use, thereby presenting a restraint within the market.

Cannabinoid Therapeutics Market - By Brand

• Sativex
• Epidiolex

Epidiolex and Sativex are prominent brands in the cannabinoid therapeutics market. The Epidiolex segment dominated the market share for cannabis pharmaceuticals in 2021 and is projected to witness rapid growth throughout the forecast period. This growth is primarily attributed to the substantial sales generated by Epidiolex. Despite challenges posed by the COVID-19 pandemic, Epidiolex experienced a notable revenue surge of over 70% in 2020 compared to 2019, driven by robust demand from the U.S. and European markets. Additionally, market expansion is facilitated by pricing and reimbursement approvals in Finland, Germany, and Israel. Epidiolex is primarily indicated for the treatment of seizures associated with Dravet syndrome and Lennox-Gastaut syndrome, with an increasing number of approvals further fueling segmental growth.

Conversely, the Sativex segment is forecasted to witness a significant compound annual growth rate (CAGR) of 26.9% during the forecast period. Sativex is primarily utilized for managing muscle spasticity resulting from multiple sclerosis. Growing demand for Sativex in Canada and various European countries to address muscle spasticity, coupled with an uptick in clinical trials exploring its efficacy for diverse medical conditions such as posttraumatic stress disorder, spinal cord injury, neurological disorders, cancer, and chronic pain, is anticipated to propel market growth. Notably, clinical studies conducted by GW Pharmaceuticals, Inc. in collaboration with Otsuka Pharmaceutical Development and Commercialization, Inc., have explored Sativex's potential in alleviating pain among advanced cancer patients. Furthermore, randomized controlled trials examining Sativex spray as adjunctive therapy for multiple sclerosis spasticity have been published, indicating a growing scope for the brand in the market.

Cannabinoid Therapeutics Market - By Application

• Medical
• Recreational
• Edibles
• Topicals
• Industrial hemp
• Others

The application segment encompasses medical, recreational, edibles, topicals, industrial hemp, and others. Cannabinoids find diverse applications in alleviating pain and inflammation, particularly in chronic conditions like arthritis, fibromyalgia, endometriosis, glaucoma, neuropathy, and Crohn's disease. Moreover, cannabinoids play a crucial role in stimulating appetite to counteract extreme weight loss associated with conditions such as AIDS. The expanding repertoire of applications across various markets underscores market growth, with a healthy CAGR observed in this segment. Notably, significant strides have been made in cancer treatment using cannabinoid medicines, representing a noteworthy achievement in medical science.

Cannabinoid Therapeutics Market - By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Rest Of the World

Geographically, Europe emerges as a dominant force in the cannabinoid therapeutics market, capturing the largest sales share of 43.8% by 2021. This dominance is fueled by increasing cannabis consumption, coupled with a growing acceptance and favorable attitudes toward cannabis and its derivatives. Additionally, the presence of major cannabis manufacturers and supportive initiatives further propels market growth. For instance, regulatory authorities like IP Portugal have granted licenses to companies like Clever Leaves for cannabis cultivation and export. Furthermore, the legalization of medical marijuana in Germany has contributed to market expansion, signaling a broader trend of cannabis legalization for medical purposes across Europe.

Conversely, the Middle East and Africa region are poised to witness the fastest growth rate in the medical cannabis market, projected at 110.2% during the forecast period. Factors such as heightened legalization efforts, increased awareness of cannabis health benefits, and approvals for medicinal cannabis usage are anticipated to drive market growth in this region. Moreover, rapid expansion of cannabis cultivation in African countries like Lesotho, South Africa, Malawi, and others further augments market prospects, creating opportunities for local market development.

Cannabinoid Therapeutics Market Share by Company

1. GW Pharmaceuticals
2. Insys therapeutics Abbvie
3. Valeant Pharmaceuticalsv

Leading companies such as GW Pharmaceuticals, Insys Therapeutics, AbbVie, and Valeant Pharmaceuticals are pivotal players in the cannabinoid therapeutics market. These entities cater to pharmaceutical, research, and beauty care sectors, with ongoing research endeavors focused on discovering new cannabinoid-based drugs. The influx of medical marijuana prescriptions has prompted pharmaceutical companies to integrate cannabis into their product portfolios and strategic initiatives. Additionally, cannabis finds applications in the beauty and wellness sectors, with CBD oil gaining significant traction among consumers. Key market players adopt various strategies such as mergers, acquisitions, and product diversification to bolster their market presence. For instance, Jazz Pharmaceuticals PLC announced its acquisition plans for GW Pharmaceuticals in February 2021, aiming to expand its neuroscience product portfolio and global commercial footprint. These strategic moves underscore the dynamic nature of the cannabinoid therapeutics market and the significant growth potential it offers.

NOTABLE HAPPENINGS IN THE CANNABINOID THERAPEUTICS MARKET IN THE RECENT PAST:

• Product Launch - In Jan 2019, Canopy Growth announced its beverage portfolio with the launch of the first CBD-infused beverage line Quatreau.
• Collaboration - In March 2019, STADAtArzneimittal AG, collaborated with Canadian Firm MEdipharm Labs, for the launch of two flower products and six more products to follow.
• Product Launch - In April 2019, Aphira launched CBD based cosmetics line for the German Market and CBD-based nutraceuticals.