GVR Report cover Cannabis Pharmaceuticals Market Size, Share & Trends Report

Cannabis Pharmaceuticals Market Size, Share & Trends Analysis Report By Brand Type (Sativex, Epidiolex), By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa), And Segment Forecasts, 2022 - 2028

  • Published Date: Jan 2022
  • Report ID: GVR-4-68038-473-4
  • Number of Pages: 150
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2020

Report Overview

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.

U.S. cannabis pharmaceuticals market size, by brand type, 2018 - 2028 (USD Million)

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.

 

COVID19 global cannabis pharmaceuticals market impact: 69.8% growth in revenue 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

Brand Type Insights

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.

Regional Insights

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.

North America cannabis pharmaceuticals market share, by country, 2021 (%)

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 Companies & Market Share Insights

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.)

Cannabis Pharmaceuticals Market Report Scope

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.

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Avail customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

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

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