The global cannabinoid-based pharmaceuticals market size was USD 1.4 Bn in 2022 and is likely to reach USD 104 Bn by 2031, expanding at a CAGR of 62.1% during 2023–2031. The rapid growth in the market has been due to the use of cannabis-derived medicines in the treatment of chronic and mental medical conditions.
Growing awareness regarding health, natural remedies, and practices such as biohacking has increased the inclination toward the usage of plant-based pharmaceutical products. Cannabinoid-based pharmaceuticals have grown in popularity over the years and are being increasingly used for the treatment of various ailments. Governments around the world are recognizing their health benefits, leading to the rise in approval of several cannabinoid-based pharmaceutical products for medicinal use, which is significantly boosting the market.
- As per the National Institute of Health, it was found in a recent national survey that among the current cannabis users, 10.5% were reported to be using it only for medicinal purposes. However, around 46.6% of adults reportedly used it for recreational/medical purposes.
Cannabinoid-based pharmaceuticals are the type of medications that use cannabinoids, a naturally occurring compound found in the cannabis sativa plant. There are two types of well-known cannabinoids that are extensively used for medicinal purposes, namely, tetrahydrocannabinol (THC) and cannabidiol (CBD).
These pharmaceutical products are developed by isolating and purifying specific cannabinoids or by performing their synthesis in the laboratory. The cannabinoid-based pharmaceutical products can be used for the treatment of a variety of medical conditions and symptoms. Some of the main pharmaceutical products used in the treatment include THC-based products and CBD-based products.
The primary psychoactive compound found In THC-based products is cannabis, which is used for its therapeutic effects. For instance, it is used in the treatment of nausea and vomiting induced by chemotherapy and in the stimulation of appetite in AIDS patients.
CBD-based products are non-psychoactive in nature and are used for several therapeutic applications. For instance, Epidiolex is a CBD-based medicine that is FDA-approved and is used to treat two very rare forms of epilepsy, Dravet syndrome, and Lennox-Gastaut syndrome.
The cannabinoids interact with the complex signaling system present in the human body called the endocannabinoid system (ECS) which is responsible for regulating various physiological processes. The cannabinoid-based pharmaceuticals help in the treatment of various conditions including muscle cramps, neuropathic pain, chronic pain, epilepsy, multiple sclerosis, inflammatory bowel diseases, and nausea.
The market report finds that the COVID-19 pandemic has had a positive impact on the growth of the cannabinoid-based pharmaceuticals market. The primary reason for this growth has been the calming effect and pain relief properties of cannabinoid-based products that have led to high rates of patient relief and positive feedback, contributing to the market growth.
Cannabinoid-based Pharmaceuticals Market Dynamics
Major Drivers
Growing acceptance and legalization of cannabinoid-based pharmaceutical products are expected to drive the market. Several countries around the world are now legalizing the use of cannabis and cannabinoids.
This is creating a favorable environment for the development and commercialization of cannabinoid-based pharmaceutical products. This has led to extensive research & development and investment of pharmaceutical companies in cannabinoid medical products.
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For instance, as per congress.gov, the United States reintroduced MORE (Marijuana Opportunity, Reinvestment, and Expungement) Act in the House of Representatives in May 2021 in order to legalize the use of cannabis products. Previously, it was passed in December 2020 but did not advance in the Senate.
Increasing demand for alternative and organic medicinal products due to lesser risk of side effects is projected to boost the market. The cannabinoid-based pharmaceutical products have proven to be highly effective in the treatment of several medical conditions. This is fueling the development and commercialization of such pharmaceutical products as an alternative form of medicine. The demand is expected to continue rising as more clinical evidence comes forth supporting the use of cannabinoids in different therapeutic areas.
Existing Restraints
Insufficient research and stringent regulations are anticipated to restrain the market during the forecast period. The limited clinical evidence regarding the effects of cannabinoid products has the potential to restrain the market. It is due to the fact that research and clinical trials are time-consuming, costly, and challenging due to the complex nature of cannabinoids and their interaction with the human body. Furthermore, strict regulations and licensing requirements for the production and distribution of cannabinoid-based pharmaceutical products are slowing its adoption and commercialization pace.
Emerging Opportunities
Extensive research and product diversification of cannabinoids is expected to create growth opportunities in the market. Research in cannabinoids has the potential for the discovery of new therapeutic & medicinal products and the optimization of existing ones. Product diversification is anticipated to result in the development of pharmaceutical products that target specific medical conditions. This is likely to help the pharmaceutical companies expand their customer base and maximize revenue potential.
Scope of Cannabinoid-based Pharmaceuticals Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Cannabinoid-based Pharmaceuticals Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Product (Epidiolex, Sativex, and Other Pipeline Products), Molecule Type (Cannabinoid Receptor Type 1, Cannabinoid Receptor Type 2, and Others), and Disease Indication (Alzheimer's Disease, Epilepsy, Migraine, Multiple Sclerosis, Schizophrenia, Autism, Cancer, Chronic Pain, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Jazz Pharmaceuticals, Inc.; Bausch Health Companies Inc.; AbbVie Inc.; Bedrocan; NuLeaf Naturals, LLC; Green Roads; Global Cannabinoids; EXMceutical Inc.; Joy Organics; Sunday Scaries; and Insys Therapeutics.
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Cannabinoid-based Pharmaceuticals Market Segment Insights
Product Segment Analysis
Based on product, the cannabinoid-based pharmaceuticals market is divided into Epidiolex, Sativex, and other pipeline products. The Epidiolex segment is expected to hold a major revenue share of the market during the projection period due to its status as the first FDA-approved derived from cannabidiol (CBD).
It is primarily used in two rare forms of epilepsy, Lennox-Gastaut syndrome, and Dravet syndrome (tuberous sclerosis complex). The drug has been significantly effective in reducing the frequency of seizures. This has led to an increased demand by patients and widespread adoption by healthcare professionals.
The Sativex segment is projected to register a considerable CAGR during the forecast period as it is the first cannabis-based medicine containing CBD and delta-9-tetrahydrocannabinol (THC) in a balanced ratio. It is primarily prescribed for the treatment of multiple sclerosis (MS) spasticity.
Sativex is known for effectively reducing muscle stiffness and improving mobility in MS patients. Due to its well-established safety and tolerability, Sativex has gained the regulatory approval of several countries around the world, further contributing to its market growth.
Molecule Type Segment Analysis
On the basis of molecule type, the global market is segregated into cannabinoid receptor type 1, cannabinoid receptor type 2, and others. The cannabinoid receptor type 1 (CB1) segment is projected to expand at a substantial CAGR during the forecast period due to its role in the treatment of neurological disorders such as multiple sclerosis, epilepsy, and chronic pain, where modulating CB1 receptors can provide relief.
CB1 receptors are primarily found in the areas responsible for the regulation of mood, pain perception, memory, and appetite. The pharmaceutical products effectively target the CB1 receptors for modification in these physiological processes.
- As per the recent survey conducted in 2021 based on the opinion of U.S. Afghanistan and Iraq veterans, around 62% of respondents vehemently agreed with legalizing medical marijuana. Approximately 44% of the veterans have agreed to the legalization of medical use of marijuana.
The cannabinoid receptor type 2 (CB2) segment is anticipated to expand at a significant pace in the market owing to its presence in peripheral tissues as well as the immune system. CB2 receptors are crucial for regulating immune responses and inflammatory processes. As a result, the segment is driven by its potential in treating autoimmune diseases, neurodegenerative disorders, and chronic inflammatory conditions.
Disease Indication Segment Analysis
On the basis of disease indication, the cannabinoid-based pharmaceuticals market is segmented into Alzheimer’s disease, epilepsy, migraine, multiple sclerosis, schizophrenia, autism, cancer, chronic pain, and others. The epilepsy segment is anticipated to register a robust growth rate during the forecast period as cannabinoid-based pharmaceuticals have emerged as a reliable treatment option for epileptic seizures.
The cannabinoid-based epilepsy drugs such as Epidiolex have proven to be effective in reducing the frequency of seizures and improving the quality of life of epilepsy patients. As a result, cannabinoid-based pharmaceuticals have gained dominance in epilepsy disease treatment.
The cancer segment is expected to expand at a significant growth rate as THC and CBD have been found to have anti-cancer properties. Clinical studies have shown that cannabinoids can inhibit the growth of cancer cells and even kill cancer cells, inducing relief from the symptoms such as nausea and pain. This has led to the rapid development of cannabinoid-based pharmaceuticals that target different types of cancer, offering treatment options and better quality of life for cancer patients.
Regional Analysis
In terms of region, the global cannabinoid-based pharmaceuticals market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period to the updated legal status of cannabis in North America.
In the United States, around 23 states have decided to legalize pharmaceutical-derived cannabis products to treat several clinical conditions with a thorough analysis of the benefits of its medical use. The organic medicinal properties along with the wide range of its benefits are expected to boost the market in the region.
Europe is anticipated to have significant market growth during the forecast period owing to the growing use of the cannabis plant and cannabis-derived medicinal products. Furthermore, the rising awareness regarding the health benefits of cannabinoid products is likely to further support the market demand in this region.
Segments
The cannabinoid-based pharmaceuticals market has been segmented on the basis of
Product
- Epidiolex
- Sativex
- Other Pipeline Products
Molecule Type
- Cannabinoid Receptor Type 1 (CB1)
- Cannabinoid Receptor Type 2 (CB2)
- Others
Disease Indication
- Alzheimer's Disease
- Epilepsy
- Migraine
- Multiple Sclerosis
- Schizophrenia
- Autism
- Cancer
- Chronic Pain
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Jazz Pharmaceuticals, Inc.
- Bausch Health Companies Inc.
- AbbVie Inc.
- Bedrocan
- NuLeaf Naturals, LLC
- Green Roads
- Global Cannabinoids
- EXMceutical Inc.
- Joy Organics
- Sunday Scaries
- Insys Therapeutics
Competitive Landscape
Key players competing in the global cannabinoid-based pharmaceuticals market are Jazz Pharmaceuticals, Inc.; Bausch Health Companies Inc.; AbbVie Inc.; Bedrocan; NuLeaf Naturals, LLC; Green Roads; Global Cannabinoids; EXMceutical Inc.; Joy Organics; Sunday Scaries; and Insys Therapeutics.
The companies in the cannabinoid-based pharmaceuticals pace are adopting development strategies such as product launches, mergers, acquisitions, collaboration, partnerships, and production expansion to expand their consumer base worldwide. They are heavily investing in research & development for the innovation of new pharmaceutical products. For instance,
- In August 2021, GW Pharmaceuticals (parent organization - Jazz Pharmaceuticals) got the approval from UK Medicines and Healthcare Products Regulatory Agency (MHRA) for their cannabinoid-based treatment called EPIDYOLEX. It helps with the treatment of seizures associated with tuberous sclerosis complex (TSC).
- In December 2021, Pfizer made an investment in medical cannabis by acquiring Arena Pharmaceuticals, a clinical-stage company. The total equity value for this acquisition has been a staggering amount of USD 6.7 billion. Pfizer is working on a promising cannabinoid-based treatment for bowel-related diseases.
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