According to the deep-dive market assessment study by Growth+Reports, the global cannabis drugs market peaked at ~US$ 31 billion in 2021. The market is expected to witness a CAGR of ~59% from 2022 to 2030.
There is an increasing disease burden of chronic pain and pain treatment techniques. Because cannabis products are effective at treating pain, more individuals are utilizing them. Legalization and decriminalization policies are being adopted in several countries as a result of cannabis' therapeutic benefits. A sustained political campaign in favor of cannabis legalization is also fueling the market for cannabis-based pharmaceuticals. It is anticipated that as cannabis becomes more widely accepted among consumers, more doctors will start prescribing cannabis-related products. In addition, the market for cannabis-based pharmaceuticals is growing as a result of growing public acceptance. Continuous trials carried on by key pharmaceuticals for therapeutic applications are also driving the market.
Due to the fact that it has only been authorized for medicinal use in a few countries, such as the United States, Australia, and South Korea, it is still illegal in many regions of the Asia Pacific and the Middle East. The legal climate in these areas restricts commercial expansion. Additionally, one of the main obstacles is the negative effects connected to cannabis use.
Around 50 million individuals globally suffer from epilepsy, a chronic noncommunicable brain condition. Recurrent seizures are one of its defining features. According to a WHO report from 2022, between 4 and 10 persons out of every 1000 are thought to have active epilepsy, which is defined as having ongoing seizures or needing treatment. Each year, epilepsy affects an estimated 5 million people worldwide. This occurrence is encouraging the practitioners to opt for cannabinoids for the management of epileptic conditions.
Furthermore, approval of cannabinoids for medical application is a major breakthrough and is responsible to boost the market. In the year 2018, The U.S. Food and Drug Administration approved Epidiolex (CBD) for the treatment of seizures associated with two rare and severe forms of epilepsy, Lennox-Gastaut syndrome, and Dravet syndrome, in patients two years of age and older. The refined drug substance derived from marijuana is present in this medication for the first time, according to the FDA. Additionally, it is the first medicine to be approved by the FDA for the treatment of Dravet syndrome patients. This first-ever approval of a drug specifically for Dravet patients will provide a significant and necessary improvement in the therapeutic approach to caring for people with this condition, according to the director of the Division of Neurology Products in the FDA's Center for Drug Evaluation and Research.
The majority of nations forbid the recreational use of cannabis, although several have implemented decriminalization policies to make simple possession of it a civil violation. Thus these instances of approvals and decriminalization events have led many pharmaceuticals to invest in R&D activities in cannabis drug applications. Jazz Pharmaceuticals plc announced the initiation of a new Phase 3 trial to investigate the efficacy and safety of Epidiolex, in children and adolescents with Epilepsy with Myoclonic-Atonic Seizures (EMAS). This randomized, double-blind, placebo-controlled study would investigate EMAS-associated seizure frequency over the 14-week treatment period.
Although US FDA has approved a few brands for medical usage, still many countries in North America haven’t received the green signal to commercialize this drug. There is a growing movement in the United States to legalize marijuana for medical and recreational purposes, and several states have already taken such steps. One of the motivations for legalization is the economic benefit derived from the commercial availability of regulated marijuana. Increased tax revenue, more jobs, and investment opportunities are all powerful incentives to push for legalization. All these factors are indicating the growth of this regional cannabis drug market in the forecast period.
The prominent players operating in the global cannabis drugs market are GW Pharmaceuticals, Valeant Pharmaceuticals International, Solvay S.A., Corbus Pharmaceuticals, Therapix Biosciences, and Canbex Therapeutics among others.