Cannabis Drugs Market

Cannabis Drugs Market Size

Global Cannabis Drugs Market size was valued at USD 14.46 billion in 2023 and is projected to grow from USD 16.63 billion in 2024 to USD 51.02 billion by 2031, exhibiting a CAGR of 17.37% from 2024 to 2031. In the scope of work, the report includes products offered by companies such as Canopy Growth Corporation, Tilray Inc., Cronos Group Inc., Jazz Pharmaceuticals plc, The Cannabist Company, Curaleaf, Green Thumb Industries, IMC Holdings Ltd., AURORA CANNABIS INC., NIRAS A/S and others.

Increasing awareness regarding the therapeutic benefits of cannabis and rising consumer acceptance of cannabis-based therapies are driving the growth of the market. Advancements in research and development have been pivotal in fostering the growth of the cannabis drugs market. Over the past decade, significant progress has been made in understanding the therapeutic potential of cannabinoids, the active compounds in cannabis. This has led to the development of a wide range of cannabis-based pharmaceuticals designed to treat conditions such as chronic pain, epilepsy, multiple sclerosis, and chemotherapy-induced nausea.

Innovations in extraction and formulation technologies have enabled the production of high-purity, consistent, and safe cannabis-derived products. Moreover, clinical trials and studies are providing robust evidence that supports the efficacy and safety of these drugs, leading to increased acceptance among the medical community and regulatory bodies. Due to this, several new products have received approval from health authorities, thereby expanding the market significantly.

The continuous investment in research is further fostering the discovery of new therapeutic applications and delivery methods, such as transdermal patches, nasal sprays, and oral tablets, aiming to enhance patient convenience and treatment protocols. This ongoing R&D activity is expected to support market growth, thereby offering new opportunities for innovation and improved patient outcomes.

Cannabis drugs are pharmaceutical products derived from the Cannabis sativa plant, specifically formulated to utilize the therapeutic properties of cannabinoids such as THC (tetrahydrocannabinol) and CBD (cannabidiol). These drugs are designed to treat a variety of medical conditions, including chronic pain, epilepsy, multiple sclerosis, and nausea associated with chemotherapy. Products in this category include oral solutions, capsules, sprays, and topical formulations.

• For instance, Epidiolex, a CBD-based drug, has received approval for the treatment of certain types of epilepsy, while Sativex, a combination of THC and CBD, is used for alleviating spasticity in multiple sclerosis.

The primary end-users of cannabis drugs are patients suffering from chronic and debilitating conditions for whom conventional treatments have proven ineffective. Medical professionals, including doctors and specialists, prescribe these drugs as part of a comprehensive treatment plan. Additionally, medical dispensaries and pharmacies are crucial distribution points, ensuring that patients have access to these medications. The growing body of evidence supporting the efficacy of cannabis drugs is contributing to their broader acceptance and integration into mainstream medical practice.

Analyst’s Review

The cannabis drugs market is experiencing robust growth, mainly propelled by strategic initiatives undertaken by leading companies. These players are heavily investing in research and development to expand their product portfolios and improve the efficacy and safety of their offerings. Strategic partnerships, mergers, and acquisitions are prevalent, aimed at enhancing market presence and leveraging complementary strengths. Moreover, companies are focusing on navigating the complex regulatory landscape by engaging with regulatory bodies to ensure compliance and secure approvals for new products.

• For instance, in June 2024, Cronos announced a USD 51 million investment to expand GrowCo's facility, aiming to bolster market growth and create potential opportunities in new markets. This investment, funded through an additional credit facility provided by Cronos, is anticipated to support the expansion of GrowCo’s cannabis facility to meet rising global demand for high-quality cannabis flower.

This proactive approach is essential in maintaining a competitive edge in a rapidly evolving market. Market growth is further fueled by increasing patient acceptance and the expanding legalization of medical cannabis across various regions. Key players are emphasizing patient education and awareness programs to demystify cannabis-based treatments and reduce stigma.

Additionally, the expansion of distribution networks, including online platforms and dedicated medical dispensaries, is crucial for reaching a broader patient base. The imperative for companies is to continue innovating while maintaining high standards of quality and safety to build trust and sustain growth in this dynamic market landscape.

Cannabis Drugs Market Growth Factors

Increasing awareness regarding the therapeutic benefits of cannabis is boosting the expansion of the cannabis drugs market. Educational initiatives by healthcare providers, advocacy groups, and the cannabis industry itself have played a crucial role in disseminating knowledge about the medicinal properties of cannabinoids. These efforts have highlighted the efficacy of cannabis in managing a wide range of conditions, such as chronic pain, epilepsy, anxiety, and multiple sclerosis.

Public seminars, medical conferences, and online platforms are used extensively to educate both healthcare professionals and patients about the scientific evidence supporting cannabis therapies. In response to this, there is a growing recognition of cannabis as a viable medical treatment, leading to a higher demand for cannabis-based drugs.

Additionally, personal testimonials and patient stories shared through media and social networks are fostering a favorable shift in public perception. This increased awareness is boosting patient inquiries and prescriptions while influencing policymakers to support the integration of cannabis into conventional medical practice. Ongoing educational initiatives and awareness campaigns are pivotal in breaking down misconceptions, promoting acceptance, and increasing demand for therapeutic cannabis products.

Stringent regulatory frameworks pose a significant challenge to the growth of the cannabis drugs market. Despite the increasing legalization of cannabis for medical use in various regions, the regulatory landscape remains complex and highly variable across different jurisdictions. These regulations typically entail rigorous approval processes, extensive clinical trials, and comprehensive documentation to ensure both safety and efficacy. Such processes are often time-consuming and financially burdensome for companies.

• For instance, gaining approval from health authorities such as the FDA or EMA requires adherence to stringent standards and substantial investment in research and compliance.

Moreover, the lack of uniformity in regulations across countries complicates the process for companies looking to enter multiple markets. This fragmented regulatory environment lead to delays in product launches and limit the availability of cannabis-based drugs to patients in need. Furthermore, stringent regulations on marketing and advertising cannabis products add another layer of complexity, restricting companies' ability to reach potential customers effectively.

Addressing these regulatory challenges requires ongoing dialogue between industry stakeholders and regulatory bodies to streamline processes, harmonize standards, and facilitate broader access to safe and effective cannabis therapies.

Cannabis Drugs Market Trends

Rising consumer acceptance of cannabis-based therapies is a significant trend shaping the cannabis drugs market landscape. In recent years, there has been a notable shift in public perception, propelled by growing evidence of the efficacy and safety of cannabis in treating various medical conditions. This acceptance is largely fueled by increased patient experiences and success stories, which are widely shared through social media and patient advocacy groups.

As more individuals witness the positive outcomes of cannabis therapies, the stigma traditionally associated with cannabis use is diminishing. Additionally, healthcare providers are increasingly willing to prescribing cannabis-based treatments as part of their therapeutic arsenal, further validating their legitimacy.

Consumer acceptance is further bolstered by the development of pharmaceutical-grade cannabis products that offer standardized dosages and formulations, ensuring consistent and reliable treatment outcomes. This trend is expanding the market base, as patients seek cannabis-based solutions for conditions such as chronic pain, anxiety, and epilepsy.

Segmentation Analysis

The global market is segmented based on product, application, end user, and geography.

By Product

Based on product, the market is categorized into capsules, concentrates, edibles, and others. The concentrates segment captured the largest cannabis drugs market share of 37.52% in 2023, largely attributed to the increasing demand for high-potency cannabis products and the rising popularity of various consumption methods such as vaping, dabbing, and edibles.

Concentrates offer higher THC levels compared to traditional cannabis flower, making them appealing to both medical and recreational users who seek more potent effects. The growth of the segment is further facilitated by advancements in extraction technologies that produce purer and more consistent products, thereby enhancing their appeal.

Moreover, the concentrates market is benefiting from consumer trends favoring discreet and convenient consumption options, such as vape cartridges and tinctures. The regulatory environment in key markets such as the U.S. and Canada has also improved, with more states and provinces legalizing cannabis concentrates for both medical and recreational use, thus expanding market access.

By Application

Based on application, the cannabis drugs market is classified into chronic pain, migraine, cancer, arthritis, Parkinson’s disease, muscle spasms, depression and anxiety, and others. The chronic pain segment is poised to record a staggering CAGR of 18.83% through the forecast period, mainly due to the growing prevalence of chronic pain conditions globally and the increasing recognition of cannabis as an effective pain management therapy.

Chronic pain affects millions of people worldwide, often leading to a reduced quality of life and significant healthcare costs. Traditional pain management methods, such as opioids, are associated with serious side effects and addiction risks, prompting patients and healthcare providers to seek alternative treatments. Cannabis-based therapies have shown promise in clinical studies for their ability to alleviate pain with a lower risk of addiction and fewer side effects. This has led to an increase in the number of patients opting for cannabis as part of their pain management regimen.

Moreover, regulatory changes and the legalization of medical cannabis in various regions have made it easier for patients to access these treatments. The growing body of scientific evidence supporting the efficacy of cannabis in pain management is expected to continue to spur demand, thereby supporting the growth of the segment.

By End User

Based on end user, the cannabis drugs market is divided pharmaceutical industries, hospitals, research and development centers, and homecare settings and rehab centers. The pharmaceutical industries garnered the highest revenue of USD 4.99 billion in 2023, propelled by the increasing integration of cannabis-based drugs into mainstream medical practice and the robust investment in research and development.

The pharmaceutical sector has been at the forefront of developing and commercializing cannabis-based medications for various medical conditions, including epilepsy, multiple sclerosis, and chemotherapy-induced nausea. Major pharmaceutical companies are investing heavily in clinical trials to validate the safety and efficacy of their cannabis-based products, leading to regulatory approvals and broader market acceptance.

Additionally, strategic partnerships and acquisitions have enabled pharmaceutical firms to enhance their product portfolios and expand their market reach. The growing patient acceptance of cannabis-based therapies, coupled with the expanding legalization of medical cannabis, has further contributed to the substantial revenue growth. The pharmaceutical industry's focus on producing high-quality, standardized cannabis medications ensures reliable treatment outcomes, thereby boosting consumer confidence and stimulating segmental expansion.

Cannabis Drugs Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The North America cannabis drugs market share stood around 34.32% in 2023 in the global market, with a valuation of USD 4.96 billion, reflecting its leading position in the global market. This dominance is largely attributed to the extensive legalization of medical cannabis across various states in the U.S. and Canada. The well-established regulatory frameworks in these countries have created a conducive environment for the growth of the cannabis industry, thereby encouraging significant investments in research and development.

• For instance, in June 2024, according to BDSA, a market intelligence firm in the cannabis sector, adult-use markets in the U.S. currently account for about 56% of total global cannabis sales. These markets are expected to expand their share further in the coming years, while U.S. medical markets may see a relative decline.

Moreover, the high prevalence of chronic conditions such as pain, epilepsy, and anxiety disorders has fueled the demand for effective cannabis-based therapies. The presence of major pharmaceutical companies and numerous cannabis startups in North America has further contributed to regional market growth, as these entities continuously innovate and expand their product offerings. Additionally, increasing public awareness and acceptance of the therapeutic benefits of cannabis have led to higher patient adoption rates.

Europe is poised to grow at a robust CAGR of 17.99% in the forthcoming years, primarily due to regulatory changes and increasing acceptance of medical cannabis. Several European countries, including Germany, the UK, and Italy, have implemented or are in the process of implementing legal frameworks for medical cannabis use. These regulatory advancements are making it easier for patients to access cannabis-based treatments, thereby boosting the cannabis drugs market growth.

• For instance, in May 2024, Cronos announced the expansion of its medical brand, PEACE NATURALS, into the UK with its first cannabis flower shipment to GROW Pharma. This partnership delivers premium cannabis products to UK patients by leveraging Cronos' investments in R&D, tissue culture, and cannabis genetics breeding.

Additionally, the European market is benefiting from significant investments in research and development, leading to the introduction of high-quality, innovative cannabis products. The growing body of clinical evidence supporting the efficacy and safety of cannabis for various medical conditions is further encouraging physician prescriptions and bolstering patient adoption.

Moreover, the increasing incidence of chronic diseases such as cancer, multiple sclerosis, and epilepsy is creating a substantial demand for alternative therapies, including cannabis-based drugs. The expanding distribution networks and collaborations between pharmaceutical companies and healthcare providers are further facilitating regional market expansion.

Competitive Landscape

The global cannabis drugs market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

List of Key Companies in Cannabis Drugs Market

• Canopy Growth Corporation
• Tilray Inc.
• Cronos Group Inc.
• Jazz Pharmaceuticals plc
• The Cannabist Company
• Curaleaf
• Green Thumb Industries
• IMC Holdings Ltd.
• AURORA CANNABIS INC.
• NIRAS A/S

Key Industry Developments

• June 2024 (Launch): The Cannabist Company, a leading cultivator, manufacturer, and retailer of cannabis products in the U.S., inaugurated its latest dispensary in Richmond, Virginia, catering to registered medical patients. This expansion aims to better serve the Richmond community by providing enhanced access to premium cannabis products and exceptional customer service.
• June 2024 (Launch): Cronos Spinach brand expanded its award-winning cannabis product line for summer, introducing new flavors and formats. This includes SOURZ by Spinach Fully Blasted gummies, each containing 10 mg THC, and the Tropical Party Pack, which features bold, tropical flavors. This expansion leverages Cronos' proprietary flavor-masking technology.
• June 2024 (Expansion): Tilray Medical, under Tilray Brands, announced the launch of Broken Coast EU-GMP certified medical cannabis products in Australia. This initiative aims to enhance patient-practitioner collaboration for informed healthcare decisions, fostering transformative impacts in the healthcare sector.
• May 2024 (Expansion): Aurora Cannabis launched its branded medical cannabis products in New Zealand, marking a significant milestone in enhancing medical cannabis accessibility in this emerging market.

The global cannabis drugs market is segmented as:

By Product

• Capsules
• Concentrates
• Edibles
• Others

By Application

• Chronic Pain
• Migraine
• Cancer
• Arthritis
• Parkinson's Disease
• Muscle spasms
• Depression and Anxiety
• Others

By End User

• Pharmaceutical Industries
• Hospitals
• Research and Development Centers
• Homecare Settings and Rehab Centers

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America