Cannabis Pharmaceuticals Market Size, Share & Trends Analysis Report By Brand Type (Sativex, Epidiolex), By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts, 2023 - 2030

Market Size & Trends

The global cannabis pharmaceuticals market size was valued at USD 1.1 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 62.5% from 2023 to 2030. Wide scale applications of cannabis in various medical applications are driving the market. For instance, cannabis is widely used in the for treating patients suffering from chronic conditions, such as Parkinson’s disease, cancer, arthritis, Alzheimer’s disease, as well as neurologic problems such as depression, anxiety, and epilepsy. Moreover, there is 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, UK, Croatia, Czech Republic, Cyprus, Columbia, Chile, Australia, Barbados, Denmark, Finland, Poland, and Portugal among others. Moreover, continuous political movement supporting cannabis legalization is driving market growth potential. For instance, in May 2021, the U.S. representative reintroduced 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.

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 market growth. 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.

COVID-19 global cannabis pharmaceuticals market impact: 69.8% growth in revenue growth

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.

Stakeholders in cannabis industry and research institutes are undertaking various research studies to prove various claims made on CBD products which in turn is driving market growth. Moreover, innovative products are introduced to cater growing consumer demand. For instance, in November 2021, Colorado State University opened new research center for CBD. In November 2021, AMP Alternative Medical Products GmbH—a fully owned subsidiary of Greenrise Global Brands, Inc.—introduced Dronabinol product into the German market. Additionally, companies are adopting various strategies to expand 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.

Brand Type Insights

By brand type, the Epidiolex segment accounts to be the largest segment in terms of revenue share of 97.5% in 2022. This 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 strong demand of 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. Rising number of approvals of Epidiolex is driving segment growth.

The other brands segment is anticipated to be the most lucrative market growing at a fastest growth rate of 76.1% during forecast period. The other brands' segment of the cannabis pharmaceuticals market includes the drugs that are in pipeline and are anticipated to launch in upcoming years. Players such as BOL Pharma, Knop Laboratories, Tilray, SciSparc, Vertanical GmBh, and Pure Green have an extensive pipeline of products in the pharmaceutical space, and once launched, it would change the dynamics of the market drastically. In January 2022, SciSparc announced that it had initiated the recruitment of the first patient for Phase-IIa clinical trial concerning cannabis-related compound SCI-110. The average timespan for completing Phase-II studies toward launch is around 2-5 years. Hence, it is anticipated that such launches will be beneficial in boosting market growth.

Regional Insights

In 2022, Europe accounted for the highest revenue share of 43.9% in global market. This is attributed to increasing cannabis consumption, as well as rising awareness and positive attitude towards cannabis and its products. Presence of major manufacturers and various initiatives by key cannabis players in the region are supporting the market growth. For instance, in August 2020, INFARMED I.P., regulatory authority in Portugal, granted license to Clever Leaves, a provider of legal cannabis, for cultivation, import and export of medical cannabis.

However, Middle East & Africa is anticipated to be the most lucrative market growing at a fastest growth rate during forecast period. Increasing legalization of cannabis, increase in awareness about its health benefits, and authorization for medical application of cannabis are expected to propel the growth of 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 pharmaceutical cannabis market in the region.

Key Companies & Market Share Insights

Key players operating in the market are GW Pharmaceuticals, plc, Insys Therapeutics, Abbvie, Valeant Pharmaceuticals (Bausch Health Companies, Inc.). Players operating in the market are adopting various strategies such as merger & acquisition 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. On 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 global cannabis pharmaceuticals market include:

• GW Pharmaceuticals, plc

• Insys Therapeutics

• Abbvie

• Valeant Pharmaceuticals (Bausch Health Companies, Inc.)

Cannabis Pharmaceuticals Market Report Scope

Global Cannabis Pharmaceuticals Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on industry trends in each of the sub-segments from 2018 to 2030. 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, 2018 - 2030)

  • Sativex

  • Epidiolex

  • Other Brands

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • 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