Cannabinoid Therapeutics Market Research Report Segmented By Brand (Sativex, Epidiolex); By Application (Medical, Recreational, Edibles, Topicals, Industrial hemp, Others); and Region - Size, Share, Growth Analysis | Forecast (2024 2030)

Cannabinoid Therapeutics Market Analysis (2024 – 2030)

The Cannabinoid Therapeutics Market achieved a valuation of USD 27.37 billion, with projections indicating an anticipated market size of USD 111.37 billion by the conclusion of 2030. Over the forecast period spanning 2024 to 2030, the market is anticipated to register a Compound Annual Growth Rate (CAGR) of 22.2%.

Industry Overview:

Derived from either the marijuana plant or synthesized chemically, cannabis is employed for various medical purposes, distinct from its recreational usage. The cannabis drug market is comprised of approximately 100 chemicals, known as cannabinoids, with cannabidiol (CBD) and Delta9-tetrahydrocannabinol (THC) being key components utilized in the medical field. Medical marijuana finds application in treating conditions such as Alzheimer's disease, multiple sclerosis, nausea, cancer, epilepsy, glaucoma, and other ailments.

Evidence suggests diverse therapeutic effects of cannabis, including the ability to alleviate chronic pain, vomiting, and nausea associated with spasticity and chemotherapy. The legalization and decriminalization of cannabis in several countries, such as the United States, Canada, the United Kingdom, and others, contribute to the growth of the cannabis drug market. Political movements advocating for cannabis legalization, as exemplified by the reintroduction of the MORE (Marijuana Opportunity, Reinvestment, and Elimination) Act in the US House of Representatives, further impact market dynamics.

As consumer acceptance of cannabis increases, the number of healthcare practitioners prescribing cannabis products is expected to rise, expanding market potential. Notably, the COVID-19 pandemic has influenced the cannabis market, with increased sales observed, particularly for Epidiolex, owing to heightened customer satisfaction and expanded payer coverage.

COVID-19 Impact on Cannabinoid Therapeutics Market

The global COVID-19 pandemic, characterized by social distancing and lockdown measures, has affected industries worldwide. Despite negative impacts on various sectors, the cannabis drug brand Epidiolex experienced positive sales growth due to high customer satisfaction and increased payer coverage. Legal cannabis sales surged during the pandemic, with Americans spending $18.3 billion on cannabis and related products in 2020 compared to $10.7 billion in 2019.

The pandemic has prompted changes in the distribution of cannabis products, with online sales channels gaining prominence. The pharmaceutical and biotechnology sectors, engaged in addressing COVID-19 challenges, are experiencing growth opportunities, driven by vaccine development and drug supply chain planning. The impact of COVID-19 on the cannabis medical market is substantial, given the increased demand for cannabis products.

MARKET DRIVERS:

Legalization of Medicinal Cannabis and Growing Pharmaceutical Usage:

The growing legalization of medicinal cannabis, particularly in major economies like the United States and Germany, is a significant driver for market expansion. These economies, with substantial markets for cannabis-based pharmaceuticals addressing inflammation, chronic pain, and sleep disorders, contribute to the overall market growth.

Increasing Awareness of Cannabis Benefits:

Cannabis, with its proven medical benefits, is gaining popularity, especially in treating conditions like depression and anxiety. Approximately 60% of individuals experience anxiety and depression at some point in their lives, and cannabis has demonstrated positive effects in alleviating these conditions. The awareness of these benefits is a key driver propelling the demand for cannabis-based medicines.

MARKET RESTRAINTS:

High Cost of Medical Cannabis and Potential Health Adverse Effects:

The elevated cost associated with medical cannabis poses a significant challenge to market growth. Consumers often consider pricing when choosing medications, and the relatively high cost of cannabis-based medicines may limit accessibility for some individuals. Additionally, concerns about potential adverse effects on health, leading to addiction in some cases, serve as a restraint on market expansion.

annabinoid Therapeutics Market - By Brand

• Sativex
• Epidiolex

The Epidiolex phase dominated the cannabis pharmaceuticals market with the highest sales share in 2021 and is projected to be the fastest-growing segment throughout the forecast period. This is due to the robust demand for Epidiolex, as indicated by a more than 70% increase in Epidiolex sales in 2020 compared to 2019, despite the challenges posed by COVID-19. The strong demand is driven by the U.S. and Europe markets, supported by pricing and reimbursement approvals in Finland, Germany, and Israel. Epidiolex is utilized in treating seizures associated with Dravet syndrome and Lennox-Gastaut syndrome, and the increasing approvals for Epidiolex contribute to the segment's expansion.

The Sativex segment is expected to experience a CAGR of 26.9% during the forecast period. Sativex is employed in addressing muscle spasticity due to multiple sclerosis. The segment's growth is fueled by the rising demand for Sativex in managing muscle spasticity in Canada and European countries. Additionally, an uptick in clinical trials for the drug, exploring its efficacy in various medical conditions such as posttraumatic stress disorder, spinal cord injury, other neurological conditions, cancer, and chronic pain, is anticipated to further propel the cannabis pharmaceuticals market over the forecast period. Notably, a clinical study sponsored by GW Pharmaceuticals, Inc. in collaboration with Otsuka Pharmaceutical Development and Commercialization, Inc. was completed in 2018, examining the effects of Sativex in alleviating pain in advanced cancer patients. Furthermore, a randomized controlled trial published in the National Library of Medicine in 2019 investigated the use of Sativex spray as an adjunct therapy for multiple sclerosis spasticity.

Cannabinoid Therapeutics Market - By Application

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

In terms of application, cannabinoids find diverse uses, including alleviating pain and inflammation, especially in chronic conditions like arthritis, fibromyalgia, endometriosis, glaucoma, neuropathy, and Crohn's disease. They are also utilized to increase appetite, preventing extreme weight loss in AIDS patients. The growing applications across various markets contribute to the market's robust Compound Annual Growth Rate (CAGR) in the application domain. Notably, cannabinoids have achieved significant success in treating cancer in numerous cases, marking a notable milestone in medical advancements.

Cannabinoid Therapeutics Market - By Region

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

Europe emerged as the dominant force in the cannabis drugs market, controlling a substantial sales share of 43.8% by 2021. This dominance is attributed to increased cannabis consumption, coupled with a more cautious and positive attitude toward cannabis and its products. The presence of major cannabis manufacturers in the region, along with various supportive initiatives, contributes to market growth. For instance, in August 2020, Portugal's regulatory authority granted licenses to Smart Leaves, facilitating cultivation and export. The legalization of medical marijuana in Germany in January 2017 further boosts market growth potential.

In contrast, the medical cannabis market in the Middle East and Africa is expected to register the fastest growth rate of 110.2% during the forecast period. Factors such as increased legalization, growing awareness of health benefits, and approval of medicinal cannabis use are anticipated to drive growth in this region. Notably, cannabis cultivation is rapidly expanding in Africa, with countries like Lesotho, South Africa, Malawi, Zambia, Rwanda, and Ghana legalizing the cultivation of medical cannabis, fueling the local market.

Cannabinoid Therapeutics Market Share by Company

1. Companies like:
2. GW Pharmaceuticals
3. Insys Therapeutics
4. Abbvie
5. Valeant Pharmaceuticals

Pharmaceutical companies, research institutes, and beauty care sectors emerge as the primary consumers in the cannabis medical market. Extensive research on cannabis compounds for discovering new drugs has impacted pharmaceutical companies, leading to an influx of medical marijuana prescriptions. Various pharmaceutical firms are strategically incorporating cannabis into their portfolios and strategies.

Cannabis also finds applications in beauty and wellness, with CBD oil gaining significant attention. Key players in the cannabis drug market are adopting diverse strategies, including mergers, acquisitions, and product development, to expand their product portfolios and geographical footprint. For instance, in February 2021, Jazz Pharmaceuticals PLC announced plans to acquire GW Pharmaceuticals, intending to enhance its neuroscience product portfolio and global commercial footprint. Prominent players in the cannabis drug market are witnessing substantial growth, contributing significantly to market expansion.

RECENT DEVELOPMENTS IN THE CANNABINOID THERAPEUTICS MARKET:

Product Introduction - In January 2019, a notable development occurred as Canopy Growth introduced its beverage portfolio, marking the debut of the initial CBD-infused beverage line named Quatreau.

Strategic Partnership - By March 2019, STADAt Arzneimittal AG entered into a collaboration with the Canadian company MEdipharm Labs. This collaboration aimed to launch two flower products initially, with plans for an additional six products in the near future.

Product Rollout - In April 2019, Aphira made a significant move by introducing a line of CBD-based cosmetics tailored for the German market. Additionally, the company unveiled CBD-based nutraceuticals during this period.