The global cannabis pharmaceuticals market size was valued at USD 943.5 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 104.2% from 2022 to 2028. Wide-scale applications of cannabis in various medical applications are driving the market. For instance, cannabis is widely used for treating patients suffering from chronic conditions, such as Parkinson’s disease, cancer, arthritis, and Alzheimer’s disease, as well as neurologic problems such as depression, anxiety, and epilepsy. Moreover, there is a growing disease burden of chronic pain and pain management therapies. This, in turn, is increasing cannabis product consumption as it is effective in pain management.
There is increasing legalization and decriminalization of cannabis in various countries owing to its therapeutic effects. For instance, medical cannabis is legal in countries such as the U.S., Canada, the U.K., Croatia, Czech Republic, Cyprus, Columbia, Chile, Australia, Barbados, Denmark, Finland, Poland, and Portugal among others. Moreover, a continuous political movement supporting cannabis legalization is driving the market for cannabis pharmaceuticals. For instance, in May 2021, the U.S. representative reintroduced the MORE (Marijuana Opportunity, Reinvestment, and Expungement) Act in the U.S. House of Representatives. Furthermore, in December 2020, the MORE Act was previously passed in the House of Representatives, but it did not advance in the Senate.
The MORE Act, if passed, would drive the demand for cannabis products in the U.S. This in turn is estimated to positively impact the growth of the pharmaceutical cannabis market. An increasing number of cannabis physicians prescribing cannabis products owing to increasing consumer acceptance is estimated to drive market potential. For instance, the number of health care practitioners registered with federally licensed sellers in Canada in September 2019 was 6700 which increased to 7,781 in March 2021. Moreover, increasing consumer acceptance is supporting the growth of the market for cannabis pharmaceuticals. according to the Centers for Disease Control and Prevention, 48.2 million people in the U.S., or 18% of the American population have consumed marijuana at least once in 2019.
The COVID-19 pandemic and associated social distancing norms and lockdown affected all industries globally. Although the COVID-19 pandemic negatively impacted sales of various product categories, major cannabis pharmaceutical brand - Epidiolex, witnessed positive growth in sales. This is attributed to high refill rates due to customer satisfaction and expansion of payer coverage. Sales of legal cannabis increased drastically in 2020 during the COVId-19 pandemic. For instance, Americans purchased USD 10.7 billion in cannabis and its products in 2019 which increased to USD 18.3 billion in 2020, according to Leafly, a leading cannabis website. Governors of various states in the U.S. declared cannabis an essential product. Moreover, many retail stores and dispensaries started offering cannabis products through the online sales channel. Thus, increasing consumption of cannabis products is estimated to positively impact market growth.
Pandemic Impact |
Post COVID Outlook |
The market for cannabis pharmaceuticals increased by 69.89% from 2019 to 2020. |
In 2021, the market will witness an increase of 79.1% in 2020. |
GW Pharmaceuticals, the company providing Epidiolex, witnessed an increase in sales of Epidiolex in 2020, despite the COVID-19 pandemic. Epidiolex sales in 2020 were USD 510.5 million compared to USD 296 million in 2019. |
The increasing number of research and development activities as well as increasing consumer and physician acceptance of cannabis pharmaceuticals. |
Increasing consumption of cannabis products during the pandemic positively impacted market growth. |
Increasing strategic initiatives undertaken by key stakeholders in the global cannabis pharmaceuticals industry along with increasing investments are estimated to drive market growth. |
Stakeholders in the cannabis industry and research institutes are undertaking various research studies to prove various claims made on CBD products which in turn is driving the market for cannabis pharmaceuticals. Moreover, innovative products are introduced to cater to growing consumer demand. For instance, in November 2021, Colorado State University opened a new research center for CBD. In November 2021, AMP Alternative Medical Products GmbH-a a fully owned subsidiary of Greenrise Global Brands, Inc.-introduced Dronabinol products into the German market. Additionally, companies are adopting various strategies to expand their market presence. In November 2021, Avicanna, a biopharmaceutical company, entered into an IP and distribution agreement with an established pharmaceutical company in Argentina. Under this agreement, Avicanna will be providing a nonexclusive license of the company’s IP with respect to its proprietary 10% CBD pharmaceutical drug preparation
The Epidiolex segment dominated the market for cannabis pharmaceuticals accounted for the largest revenue share in 2021 and is estimated to be the fastest-growing segment during the forecast period. This is attributed to the high sales of Epidiolex. According to GW Pharmaceuticals annual report, Epidiolex sales increased by more than 70% in 2020 from 2019 despite COVID-19. This is due to the strong demand for Epidiolex from the U.S. and Europe. Moreover, pricing and reimbursement approval in Finland, Germany, and Israel is supporting market growth. Epidiolex is used in the treatment of seizures associated with Dravet syndrome and Lennox-Gastaut syndrome. The rising number of approvals of Epidiolex is driving the segment growth.
The Sativex segment is estimated to witness a CAGR of 26.9% during the forecast period. Sativex is used to treat muscle spasticity due to multiple sclerosis. Increasing demand for Sativex for use in muscle spasticity in Canada, and European countries is driving the segment growth. Moreover, an increase in the number of clinical trials of the drug for other medical conditions such as posttraumatic stress disorder, spinal cord injury, other neurological conditions, cancer, and chronic pain is further expected to drive the market for cannabis pharmaceuticals over the forecast period. For instance, a clinical study sponsored by GW Pharmaceuticals, Inc. in collaboration with Otsuka Pharmaceutical Development and Commercialization, Inc. was completed in 2018. This study was aimed at analyzing the effects of Sativex for relieving pain in patients with advanced cancer. In addition, a randomized controlled trial published in the National Library of Medicine in 2019 analyzed the use of Sativex spray as an additional therapy for multiple sclerosis spasticity.
Europe dominated the market for cannabis pharmaceuticals and accounted for the highest revenue share of 43.8% in 2021. This is attributed to increasing cannabis consumption, as well as raising awareness and positive attitude towards cannabis and its products. The presence of major manufacturers and various initiatives by key cannabis players in the region are supporting market growth. For instance, in August 2020, INFARMED I.P., a regulatory authority in Portugal, granted a license to Clever Leaves, a provider of legal cannabis, for the cultivation, import, and export of medical cannabis. In January 2017, Germany legalized medical marijuana. Thus, increasing the legalization of cannabis and its products for medical use is estimated to drive market growth potential.
However, in the Middle East and Africa, the cannabis pharmaceuticals market is anticipated to witness the fastest growth rate of 110.2% during the forecast period. The increasing legalization of cannabis, increase in awareness about its health benefits, and authorization for medical application of cannabis are the factors expected to propel the growth of the Middle East and Africa region over the forecast period. Additionally, cannabis cultivation in the African region is rapidly growing. Several countries such as Lesotho, South Africa, Malawi, Zambia, Rwanda, and Ghana among others have legalized medical cannabis cultivation. This in turn is estimated to drive the market in the region.
Key players operating in the market for cannabis pharmaceuticals are adopting various strategies such as mergers and acquisitions and product development to expand product portfolio and geographic presence. For instance, in February 2021, Jazz Pharmaceuticals PLC announced its plans to acquire GW Pharmaceuticals. Upon completion of the acquisition, Jazz Pharmaceutical would have an enhanced neuroscience product portfolio with an increased global commercial footprint. Some of the prominent players in the cannabis pharmaceuticals market include:
GW Pharmaceuticals, plc
Insys Therapeutics
Abbvie
Valeant Pharmaceuticals (Bausch Health Companies, Inc.)
Report Attribute |
Details |
Market size value in 2022 |
USD 1750.2 million |
Revenue forecast in 2028 |
USD 127.1 billion |
Growth Rate |
CAGR of 104.2% from 2022 to 2028 |
Base year for estimation |
2021 |
Historical data |
2016 - 2020 |
Forecast period |
2022 - 2028 |
Quantitative units |
Revenue in USD million and CAGR from 2022 to 2028 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Brand type, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; U.K.; Germany; Italy; France; Netherland; Poland; Croatia; Czech Republic; Switzerland; Japan; South Korea; Australia; New Zealand; Brazil; Mexico; Argentina; Columbia; Uruguay; Chile; Peru; Israel |
Key companies profiled |
GW Pharmaceuticals, plc, Insys Therapeutics, Abbvie, Valeant Pharmaceuticals (Bausch Health Companies, Inc.) |
Customization scope |
Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research, Inc. has segmented the global cannabis pharmaceuticals market report on the basis of brand type and region:
Brand Type Outlook (Revenue, USD Million, 2016 - 2028)
Sativex
Epidiolex
Regional Outlook (Revenue, USD Million, 2016 - 2028)
North America
U.S.
Canada
Europe
U.K.
Germany
Italy
France
Netherland
Poland
Croatia
Czech Republic
Switzerland
Asia Pacific
Japan
South Korea
Australia
New Zealand
Latin America
Brazil
Mexico
Argentina
Columbia
Uruguay
Chile
Peru
Middle East & Africa
Israel
b. The global cannabis pharmaceuticals market size was estimated at USD 67.0 million in 2019 and is expected to reach USD 107.3 million in 2020.
b. The global cannabis pharmaceuticals market is expected to grow at a compound annual growth rate of 76.8% from 2020 to 2027 to reach USD 5.8 billion by 2027.
b. Sativex dominated the cannabis pharmaceuticals market with a share of 83.0% in 2019. This is attributable to the growing approval of the drug for the treatment of spasticity caused due to multiple sclerosis in various countries.
b. Some key players operating in the cannabis pharmaceuticals market include GW Pharmaceuticals; AbbVie Inc.; Valeant Pharmaceuticals; and Insys Therapeutics, Inc.
b. Key factors that are driving the market growth include the rapidly progressing transformation of cannabis from herbal preparations to prescription drugs.
GET A FREE SAMPLE
This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
ESOMAR certified & member
Leading SME award by D&B
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.
"The quality of research they have done for us has been excellent."
We value your investment and offer free customization with every report to fulfil your exact research needs.