Cannabis Pharmaceuticals Market Report 2025

This Cannabis Pharmaceuticals market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The cannabis pharmaceuticals market size has grown exponentially in recent years. It will grow from $6.03 billion in 2024 to $9.45 billion in 2025 at a compound annual growth rate (CAGR) of 56.66%. The growth in the historic period of the cannabis pharmaceuticals market can be attributed to several key factors, the increase in the legalization of medical cannabis, rising awareness of the therapeutic benefits of cannabinoids, a growing prevalence of chronic and neurological disorders, supportive regulatory frameworks, expanding investments from pharmaceutical companies, and a shift in public perception toward cannabis as a viable healthcare solution.

The cannabis pharmaceuticals market size is expected to see exponential growth in the next few years. It will grow to $56.37 billion in 2029 at a compound annual growth rate (CAGR) of 56.29%. Looking forward, the growth in the forecast period is expected to be driven by increasing regulatory approvals for medical cannabis, growing awareness of its benefits, expanding applications in the management of pain and neurological disorders, and a rising prevalence of chronic illnesses. Innovations in drug delivery systems and the establishment of favorable reimbursement policies will also play a crucial role in market growth. Key trends in the forecast period include advancements in cannabinoid extraction technologies, the development of targeted drug delivery systems, the adoption of synthetic cannabinoid formulations, improvements in clinical trial methodologies, and the integration of artificial intelligence (AI) in drug discovery.

The growing prevalence of epilepsy is expected to drive the expansion of the cannabis pharmaceuticals market. Epilepsy, a neurological disorder marked by recurrent, unprovoked seizures due to abnormal brain activity, is becoming more common due to improved diagnoses, increased awareness, and better reporting. Environmental, genetic, and lifestyle factors may also contribute to the rise in cases. Cannabis-based treatments have shown promise in managing epilepsy by using cannabinoids such as CBD to reduce the frequency and severity of seizures in patients who do not respond to traditional anti-epileptic drugs. For example, in April 2022, the European Brain Council reported that over 600 neurological diseases and nearly 300 psychiatric conditions affect millions worldwide, including 65 million people with epilepsy. Furthermore, according to the Alzheimer Society of Canada in July 2024, it is estimated that 771,939 Canadians will have dementia by January 1, 2025, with that number expected to reach nearly one million by 2030. This increasing incidence of epilepsy is fueling the growth of the cannabis pharmaceuticals market.

Companies in the cannabis pharmaceuticals market are increasingly focusing on the development of innovative products, such as advanced medical cannabis formulations, to address a variety of medical conditions and improve patient outcomes. These formulations are specially designed cannabis-based products optimized for therapeutic use, incorporating precise doses of cannabinoids such as THC and CBD. For example, in April 2024, Canexis Pharma AG, a pharmaceutical company based in Switzerland, received manufacturing and narcotics licenses from Swissmedic for cannabis pharmaceuticals. These approvals allow the company to produce premium-grade medicinal active ingredients derived from CBD and THC, positioning Canexis to meet the growing demand for medical cannabis both in Switzerland and internationally. The licenses demonstrate the company’s adherence to strict regulatory standards, enhancing its credibility and ability to contribute to the rapidly expanding medical cannabis market.

In December 2022, Flora Growth Corp., a U.S.-based cannabis products manufacturer, acquired Franchise Global Health Inc. for $19.5 million. This acquisition strengthens Flora’s global presence by expanding its distribution network in the European Union, particularly in Germany's growing cannabis market. Additionally, it enhances Flora’s ability to meet the increasing demand for medical and pharmaceutical cannabis. Franchise Global Health Inc., a pharmaceutical company based in Canada, is primarily involved in the medical cannabis and pharmaceutical industries.

Major players in the cannabis pharmaceuticals market are Curaleaf Holdings Inc., Aphria Inc., Green Thumb Industries Inc., Trulieve Cannabis Corp., Tilray Inc., Cresco Labs Inc., Columbia Care Inc., Acreage Holdings Inc., Canopy Growth Corporation, Aurora Cannabis Inc., MedMen Enterprises Inc., OrganiGram Holdings Inc., Cronos Group, Enveric Biosciences Inc., Auxly Cannabis Group Inc., Valens Company Inc., Charlotte's Web Holdings Inc., Medical Marijuana Inc., Aleafia Health Inc., Supreme Cannabis Company Inc., Avicanna Inc., Emerald Health Therapeutics Inc.

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

Cannabis pharmaceuticals refer to prescription medications derived from cannabis, specifically using cannabinoids such as tetrahydrocannabinol (THC) and cannabidiol (CBD), produced under strict clinical and regulatory standards. These pharmaceuticals are designed to address specific health conditions, offering therapeutic benefits for chronic pain, epilepsy, multiple sclerosis, and other ailments.

The main types of cannabis pharmaceuticals include cannabinoid-based pharmaceuticals, cannabis extracts, and synthetic cannabinoids. Cannabinoid-based pharmaceuticals incorporate natural or synthetic cannabinoids such as THC and CBD to treat a variety of health conditions. These medications come in various formulations, including capsules and tablets, oils and tinctures, and topical solutions, which are used for therapeutic applications such as cancer treatment, managing neurological disorders, and pain relief. Distribution channels for these pharmaceuticals include hospital pharmacies, online pharmacies, and retail pharmacies. Key end users are hospitals and clinics, rehabilitation centers, and research organizations.

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

The cannabis pharmaceuticals market consists of sales of dronabinol (synthetic THC) and cannabidiol (CBD) oil used to treat various medical conditions. 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.

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 and 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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