Cannabis Pharmaceuticals Market by Brand Type (Sativex, Epidiolex, and Others) and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Cannabis Pharmaceuticals Overview

The pharmaceutical industry's division devoted to the creation, manufacturing, and distribution of drugs made from cannabis or its byproducts is referred to as the "Cannabis Pharmaceuticals Market." Tetrahydrocannabinol (THC) and cannabidiol (CBD), two active cannabinoids that have demonstrated potential medicinal effects, are found in cannabis, which is sometimes referred to as marijuana or hemp. Due to cannabis and its derivatives reputed usefulness in treating a range of medical ailments, there has been an increase in interest in researching their potential medical uses in recent years. Cannabinoids may be therapeutically useful for treating ailments like chronic pain, epilepsy, multiple sclerosis, chemotherapy-induced nausea and vomiting, and some mental health disorders, according to research.

Global Cannabis Pharmaceuticals Market Analysis

The global cannabis pharmaceuticals market size was $1.12 billion in 2022 and is predicted to grow with a CAGR of 62.9%, by generating a revenue of $138.58 billion by 2032.

COVID-19 Impact on Global Cannabis Pharmaceuticals Market

The cannabis pharmaceuticals market was significantly impacted by the COVID-19 pandemic. Due to its widespread acceptance as a necessary enterprise, the cannabis industry as a whole has shown considerable resilience. However, the pharmaceutical sector has encountered both opportunities and obstacles. On one hand, the pandemic caused worldwide supply chain disruptions that made it impossible to source the raw materials and chemicals needed to make cannabis-based medications. The distribution and retail sales of cannabis therapeutic items were further hampered by the rigorous lockdown regulations and social segregation norms. These elements, together with the state of the economy, had an impact on consumer purchasing patterns and might have caused a brief drop in sales for some businesses in the industry.

The cannabis medicinal industry will need to adjust to shifting customer attitudes and regulatory environments as the world continues to navigate the pandemic's aftermath if it is to reach its full potential.

Legalization of Cannabis to Drive the Market Growth

First and foremost, pharmaceutical businesses now have access to new markets and business prospects as a result of the growing legalization and decriminalization of cannabis for medical purposes in numerous nations and jurisdictions. The regulatory obstacles have started to dissolve as more countries become aware of the potential therapeutic advantages of cannabis-based medications, creating a more hospitable atmosphere for market expansion. Second, the general public's increased acceptance and knowledge of cannabis' therapeutic benefits have fueled an increase in demand for cannabis-based medications. Cannabis-based medications present a viable treatment option for patients seeking relief from chronic pain, neurological diseases, and other medical ailments. Pharmaceutical companies have been compelled by this spike in demand to spend on research and development to produce cutting-edge cannabis-derived medicines, further fueling market expansion.

The Complex Legal Environment to Restrain the Market Growth

Several restraints that are preventing the expansion and mainstream adoption of the cannabis pharmaceuticals business have arisen as it continues to gain traction and explore its potential. The complicated and changing legal environment around cannabis, with varied laws and prohibitions in many nations and areas, is one of the main difficulties. Businesses and investors are less likely to spend on research, development, and commercialization as a result of the lack of legal harmonization. The stigma attached to marijuana continues to be a major obstacle. Despite the growing acceptance of cannabis as a medicine, some social groups still have an unfavorable opinion of marijuana because of its historical connection to recreational usage. This stigma can impede medical endorsement, public image, and patient acceptance, limiting market expansion. Another significant barrier is the paucity of scientific studies on cannabis and its potential medical uses. Although there is a growing corpus of research demonstrating the effectiveness of cannabis-based treatments for several medical problems, more thorough clinical trials and long-term studies are required to completely comprehend their safety, effectiveness, and any drug interactions. Healthcare professionals and patients are further challenged by the absence of standardized dosing and product consistency.

Advancements in Technology to Drive Excellent Opportunities

The development, production, and use of medical cannabis products for a variety of therapeutic purposes have undergone a radical change as a result of substantial technological breakthroughs, according to the cannabis pharmaceuticals market. The medical benefits of cannabis components, particularly cannabinoids like THC (tetrahydrocannabinol) and CBD (cannabidiol), in treating a variety of medical problems have been the driving force behind these breakthroughs, according to a growing body of research. The creation of more exact and effective extraction techniques is one of the biggest technological developments in the cannabis pharmaceuticals sector. These techniques enable the extraction from the cannabis plant of particular cannabinoids and terpenes, allowing for the creation of standardized and targeted pharmaceuticals with predictable dosages. This accuracy has improved safety and has been essential in achieving consistent therapeutic results.

Global Cannabis Pharmaceuticals Market Share, by Brand Type, 2022

The epidote sub-segment accounted for the highest market share in 2022. A considerable position for Epidiolex in the cannabis pharmaceuticals market had already been created. The first FDA-approved prescription drug made from cannabis, Epidiolex is a pharmaceutical-grade CBD (cannabidiol) product created by GW Pharmaceuticals (now a division of Jazz Pharmaceuticals). Lennox-Gastaut syndrome and Dravet syndrome, two uncommon and severe forms of epilepsy, were both approved for treatment in the US in 2018 for patients two years of age and older. The launch of Epidiolex was a turning point for the cannabis pharmaceutical industry because it showed that chemicals derived from cannabis could be used to make powerful and secure medicines. It not only provided patients with these specific types of epilepsy with new treatment options but also provided validity and credibility to the medicinal usage of cannabis-derived products. The FDA's approval of Epidiolex and its commercialization has undoubtedly had an impact on the larger cannabis pharmaceuticals business.

Global Cannabis Pharmaceuticals Market Share, by Region, 2022

The Europe cannabis pharmaceuticals market generated the highest revenue in 2022. Several European nations have taken efforts to legalize or decriminalize medical marijuana in recognition of its potential therapeutic advantages for several diseases, including chronic pain, multiple sclerosis, epilepsy, and chemotherapy-related nausea. Opportunities for the development and commercialization of pharmaceuticals based on cannabis have been made possible by these legislative reforms. There are now businesses specializing in the development, growth, and manufacturing of cannabis-based medications in the European cannabis pharmaceutical market. These businesses are seeking to get the necessary regulatory clearances from key bodies like the national health agencies and the European Medicines Agency (EMA) for their products.

Competitive Scenario in the Global Cannabis Pharmaceuticals Market

Investment and agreement are common strategies followed by major market players. Some of the leading cannabis pharmaceuticals market players are GW Pharmaceuticals, AbbVie Inc., Valeant Pharmaceuticals, Insys Therapeutics, Inc., Corbus Pharmaceuticals, Teva Pharmaceutical, Johnson & Johnson, Avicanna, Solvay Pharmaceuticals, Cannabics Pharmaceuticals