The global cannabis pharmaceuticals market size was valued at USD 107.25 million in 2020 and is projected to expand at a substantial CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the rapidly progressing transformation of cannabis from herbal preparations to prescription drugs. Another important driver of the market is the increasing usage of cannabis-based medications for a variety of healthcare conditions including inflammation, chronic pain, epilepsy, sleep disorders, anorexia, schizophrenia, and symptoms of multiple sclerosis.
The emergence of Cannabis 3.0, which emphasizes the importance of value-based outcomes over perception-based outcomes present a key aspect of the market. This concept is related to a move away from smoking whole cannabis flower/bud and toward the consumption of processed, measured, and packaged cannabis products. Pharmaceutical products such as Sativex, Epidiolex, Nabilone, Dronabinol, and others in pipeline are likely to stimulate the medical cannabis market and also enhance physician and patient perceptions of the quantifiable benefits of cannabis-based drugs. These drugs are widely developed and regulated through a rigorous process of herbal preparation and clinical trials. In 2018, for example, about 400 active and completed CBD clinical trials were conducted. GW Pharmaceuticals had roughly 40 clinical trials filed with the US Food and Drug Administration (FDA), followed by Sanofi, which were around 38 active or finished trials as of June 2018.
According to Health Canada, in 2019, about 13,359 physicians in Canada wrote prescriptions for 2.1 grammes of the average amount of cannabis for therapeutic purposes each day. Furthermore, some businesses are concentrating their efforts on the creation of cannabis-based medicinal formulations, which is assisting the market expansion. For example, GW Pharmaceuticals released EPIDIOLEX, a cannabidiol (CBD)-based oral solution for treating seizures. Plant-derived CBD is used to make the company's prescription pharmaceutical formulations on the market. Despite the fact that Epidiolex does not contain psychoactive THC, its global legalization is a difficult process due to the existence of strict rules on cannabis-infused goods.
Market Trends, Drivers, Restraints, and Opportunities
- Rapidly progressing in the development of cannabis products for medical applications and herbal preparations to prescription drugs are expected to boost the market growth during the forecast period.
- Expanding number of clinical trials using cannabis' medicinal experiments for various health concerns is also boosting market expansion.
- Increasing the number of authorizing physicians providing medical cannabis to patients as a result of increased clinical evidence as well as growing awareness of medical cannabis are expected to drive the market significantly.
- Drug manufacturers are confronted with high operational expenses and logistical challenges. This is projected to hamper the market growth.
- Existing regulatory challenges and restriction in the approval of cannabis pharmaceuticals products are major challenges restraining the market growth.
Scope of the Report
The report on the global cannabis pharmaceuticals market 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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Cannabis Pharmaceuticals Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Brands (Epidiolex and Sativex)
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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, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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GW Pharmaceuticals; AbbVie Inc.; Valeant Pharmaceuticals; and Insys Therapeutics, Inc.
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Market Segment Insights
Epidiolex segment is expected to expand at a rapid pace
Based on brands, the cannabis pharmaceuticals market is bifurcated into epidiolex and sativex. The epidiolex segment is expected to expand at a rapid pace during the forecast period owing to growing commercial success of the pharmaceutical drugs. Epidiolex is the FDA's first approval of a cannabis-infused medicine, which is widely adopted for the treatment of Lennox-Gastaut Syndrome (LGS) and Dravet syndrome. Following years of research, as studies indicated that CBD is helpful in treating seizures, which is projected to promote the expansion of this market.
With representing more than 80.3% of the global revenue share in 2019, the Sativex segment dominated the market. The key factor for the expansion of this segment is due to the increasing approval of the medicine for the treatment of spasticity induced by multiple sclerosis in various nations. Sativex has been licensed for muscle spasticity in 21 countries so far. Furthermore, the market is likely to be driven by an increase in clinical studies of the medicine for other medical disorders such as spinal cord injury spasticity, Post-Traumatic Stress Disorder (PTSD), and other neurological diseases over the projected period.
Asia Pacific market is anticipated to expand at an impressive CAGR
On the basis of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of Asia Pacific is anticipated to expand at an impressive CAGR during the forecast period. The regional market growth can be attributed to the increasing legalization guidelines towards the use of these pharmaceuticals in various countries in the region. Furthermore, several Asia Pacific countries including New Zealand, South Korea, and Japan, have altered their government policies to include these drugs as medicinal products. Besides this, rising awareness of cannabis's medical benefits including its healing properties, is expected to drive the region's cannabis pharmaceuticals market.
Segments
Segments Covered in the Report
The global cannabis pharmaceuticals market has been segmented on the basis of
Brands
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- GW Pharmaceuticals
- AbbVie Inc.
- Valeant Pharmaceuticals
- Insys Therapeutics, Inc.
Competitive Landscape
Key players competing in the cannabis pharmaceuticals market are GW Pharmaceuticals; AbbVie Inc.; Valeant Pharmaceuticals; and Insys Therapeutics, Inc. The medical cannabis market has made some remarkable advances in recent years, due to the implementation of novel products. The clinical trials and approval of some cannabis-infused products have paved the way for cannabinoid-based pharmaceuticals to enter the market. The cannabis pharmaceutical market is still in its early stages, with many opportunities. The increasing legalization of marijuana around the world is encouraging move and more investment are constantly in place from key pharmaceutical companies to devote more resources to the development of cannabinoid-based pharmaceutical drugs.
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