Synthetic Cannabinoids Market Report 2025

The synthetic cannabinoids market size has grown rapidly in recent years. It will grow from $1.88 billion in 2024 to $2.2 billion in 2025 at a compound annual growth rate (CAGR) of 17.1%. The growth in the historic period can be attributed to increasing demand for alternative drugs, increasing number of cannabis users, growing pharmaceutical applications, growing demand for legal highs, and a growing shift toward self-medication.

The synthetic cannabinoids market size is expected to see rapid growth in the next few years. It will grow to $4.19 billion in 2029 at a compound annual growth rate (CAGR) of 17.5%. The growth in the forecast period can be attributed to the rising popularity of designer drugs, the growing legalization of cannabis, the increasing online accessibility of synthetic drugs, the increasing popularity of vaping, and the rising customization of cannabinoid products. Major trends in the forecast period include advanced forensic toxicology techniques, machine learning for chemical pattern recognition, cloud-based illicit drug tracking, innovations in synthetic cannabinoid formulations, and the development of novel cannabinoid analogs.

The forecast of 17.5% growth over the next five years reflects a modest reduction of 0.5% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariff escalations could disrupt U.S. pain management clinics by inflating prices of dronabinol formulations and cannabis-derived active pharmaceutical ingredients manufactured in Canada and Israel, resulting in limited neuropathic pain treatment options and higher palliative care expenses. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing demand for treatments of neurological disorders is expected to drive the expansion of the synthetic cannabinoids market. Neurological disorders, which affect the brain, spinal cord, and nerves, can disrupt movement, sensation, cognition, and overall bodily functions. The rise in neurological conditions is largely attributed to the aging global population, as diseases such as Alzheimer’s become more prevalent with age, due to the natural aging of the brain and accumulated cellular damage. Synthetic cannabinoids work by interacting with cannabinoid receptors in the brain, which helps regulate neurotransmitter activity and may assist in alleviating symptoms related to neurological disorders. For example, in September 2024, the European Brain Council, based in Belgium, reported that 7 million people in Europe are currently living with Alzheimer’s disease. This number is expected to double to 14 million by 2030, due to the aging population, posing a significant global public health issue. As a result, the increasing demand for treatments for neurological disorders is driving the growth of the synthetic cannabinoids market.

Leading companies in the synthetic cannabinoids market are focusing on developing advanced technologies, such as fungal expression systems, to improve production efficiency and reduce costs. Fungal expression systems involve genetically engineered fungi that biosynthesize synthetic cannabinoids, offering a sustainable and scalable alternative to traditional chemical synthesis or plant extraction methods. These systems enable the production of high-purity cannabinoids for pharmaceutical and research applications. For example, in January 2022, Dyadic International Inc., a biotechnology company based in the US, introduced its C1-cell protein production platform to manufacture synthetic cannabinoids. This innovative approach utilizes filamentous fungal cell factories to produce cannabinoids such as cannabidiol (CBD) and its precursors in a more cost-effective and sustainable manner. The process is environmentally friendly, energy-efficient, and capable of yielding purer cannabinoids that meet regulatory standards, with potential therapeutic uses in treating chronic pain, inflammation, and other medical conditions.

In January 2022, Dermapharm Holding SE, a Germany-based pharmaceutical manufacturer, acquired C³ Cannabinoid Compound Company GmbH for $87.35 million. With this acquisition, Dermapharm Holding SE aims to bolster its position as a leader in the medical cannabis market, expand into new European regions, and leverage synergies to improve patient access while driving growth in cannabinoid-based pharmaceuticals. C³ Cannabinoid Compound Company GmbH, based in Germany, specializes in the production of synthetic cannabinoids.

Major players in the synthetic cannabinoids market are Johnson Matthey, Harmony Biosciences, BioVectra, Restek Corporation, Noramco Inc., Cayman Chemical, Cerilliant Corporation, Skye Bioscience, Purisys LLC, Chiron AS, Lygos Inc., Botanix Pharmaceuticals, CB Therapeutics Inc., BayMedica, Zynerba Pharmaceuticals Inc., Kannalife Sciences Inc., SciSparc Ltd., 180 Life Science, Tetra Bio-Pharma Inc., and Canntab Therapeutics Ltd.

North America was the largest region in the synthetic cannabinoids market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in synthetic cannabinoids report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the synthetic cannabinoids market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The synthetic cannabinoids market consists of sales of research chemicals, prescription medications, and herbal incense products. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are having a significant impact on the pharmaceutical sector. Companies are grappling with higher costs on imported active pharmaceutical ingredients (APIs), glass vials, and laboratory equipment - many of which have limited alternative sources. Generic drug manufacturers, already operating with minimal profit margins, are particularly affected, with some scaling back production of low-margin medications. Biotech firms are also experiencing delays in clinical trials due to shortages of specialized reagents linked to tariffs. In response, the industry is shifting API production to regions like India and Europe, building up inventory reserves, and advocating for tariff exemptions on essential medicines.

The synthetic cannabinoids market research report is one of a series of new reports that provides synthetic cannabinoids market statistics, including synthetic cannabinoids industry global market size, regional shares, competitors with a synthetic cannabinoids market share, detailed synthetic cannabinoids market segments, market trends and opportunities, and any further data you may need to thrive in the synthetic cannabinoids industry. This synthetic cannabinoids market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Synthetic cannabinoids are laboratory-engineered compounds designed to replicate the effects of natural cannabinoids by binding to cannabinoid receptors in the body. These compounds are produced through advanced chemical synthesis and can be much more potent and unpredictable than their natural counterparts. Some synthetic cannabinoids are also used in regulated pharmaceutical applications for therapeutic purposes.

The main types of synthetic cannabinoids include high-pure synthetic cannabinoids and ultra-pure synthetic cannabinoids. High-pure synthetic cannabinoids are chemically engineered compounds that replicate the effects of natural cannabinoids, such as tetrahydrocannabinol (THC), found in the cannabis plant. These cannabinoids are available in various formulations, including oils, capsules, edibles, vapes, and topicals, and are used for several indications, such as pain management, nausea and vomiting relief, and the treatment of neurological disorders. They are distributed through different channels, including hospital pharmacies, retail pharmacies, and online pharmacies, and are used in applications such as pharmaceuticals, research, recreational use, agriculture, and nutraceuticals.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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