Cannabinoids Market Size 2023, Forecast By 2032

Market Synopsis

The global cannabinoids market size was valued at USD 12.08 billion in 2022 and is expected to reach USD 39.28 billion by 2032, and register a revenue CAGR of 14% during the forecast period. The legalization of cannabis for medical and recreational use, increased public awareness of the health advantages of cannabinoids, and increase in research and development efforts to examine the therapeutic potential of cannabinoids are some of the major factors driving market revenue growth.

Tetrahydrocannabinol (THC) and Cannabidiol (CBD) are two examples of the naturally occurring chemical compounds called cannabinoids that are present in the cannabis plant (THC). THC is recognized for its psychoactive effects and recreational use, whereas CBD is used extensively in medical applications due to its non-psychoactive qualities and possible health advantages. Cannabinoids are in high demand as a successful treatment option for a variety of conditions, including chronic pain, epilepsy, and multiple sclerosis, as a result of rising recognition of cannabis for medical purposes.

Also, the rising popularity of using cannabinoids for sleep and stress alleviation is boosting market revenue. The COVID-19 pandemic’s rise in mental health problems has raised the market for cannabinoids, especially CBD, as natural alternatives to over-the-counter anxiety and depression drugs.

Also, the industry is expanding since hemp-derived cannabinoids are being used more and more in a variety of sectors, such as the pharmaceutical, food and beverage, and cosmetics industries. As hemp-derived cannabinoids contain less than 0.3% THC and are legal in most nations, they are a popular option for a variety of uses.

Also, the legalization of cannabis in numerous nations and states is spurring an increase in market revenue. The legalization of cannabis for both medical and recreational purposes in various states in the U.S. has raised consumer demand for cannabinoids, fueling the expansion of the market. Similar to the United States, Canada has seen new potential for market expansion as a result of the legalization of cannabis for recreational use.

The absence of industry regulation and standardization, the scarcity of high-quality cannabis plants for cannabinoid extraction, and the high price of cannabinoid products as a result of the labor-intensive extraction process all function as barriers to the market’s expansion.

Government Regulations:

  • In the U.S., hemp and CBD products are regulated at both the federal and state levels. The 2018 Farm Bill legalized hemp as an agricultural commodity, and the U.S. Food & Drug Administration (FDA) is responsible for regulating products containing hemp-derived CBD.
  • The European Union has adopted regulations that allow for the cultivation and sale of medical cannabis products within its member states. In addition, countries such as Germany, Italy and the Netherlands have passed laws allowing for the cultivation and sale of recreational cannabis products.
  • Canada has legalized the production, distribution, sale and possession of both medical and recreational cannabis products. The federal government is responsible for setting regulations governing the production and sale of these products, while provincial governments are responsible for controlling their distribution.
  • Mexico has passed legislation legalizing the cultivation, sale and possession of cannabis products for medical use. The Mexican government is in the process of developing regulations governing the production, distribution and sale of these products.
  • Several countries have decriminalized or legalized the use of cannabis for recreational or medical purposes, including Uruguay, Colombia, Peru and Belize.

Key Takeaways

Product Type Insights:

Based on product type, the global cannabinoids market for is segmented into CBD, THC, and others. The CBD segment is expected to account for largest revenue share during the forecast period. Cannabidiol, sometimes known as CBD, is a non-psychoactive substance present in the cannabis plant. It has grown in prominence in recent years due to its potential therapeutic benefits, including anti-inflammatory, analgesic, anxiolytic, and antipsychotic actions. CBD is widely employed in a number of sectors, including the pharmaceutical, cosmetic, and food and beverage industries. Revenue growth of the cannabinoids market is driven by rising consumer knowledge of CBD’s health advantages, rising acceptance of CBD products for medicinal use, and increased research and development efforts.

The THC segment is expected to register fastest revenue CAGR during the forecast period. The psychoactive substance THC, also known as delta-9-tetrahydrocannabinol, is present in the cannabis plant. It is what causes the “high” or euphoric sensation that comes with cannabis consumption. THC is commonly utilized both medically and recreationally for things like pain alleviation, appetite stimulation, and nauseousness reduction. In the upcoming years, it is anticipated that the THC market will rise due to the increasing acceptance of cannabis for recreational use, the increasing legalization of cannabis in numerous nations, and the development of novel delivery mechanisms for THC products.

Application Insights:

Based on application, the global cannabinoids market for is segmented into medicinal, recreational, pharmaceutical, food & beverage, and others. The medical segment is expected to account for largest revenue share during the forecast period due to increasing use of medicinal cannabis in the treatment of conditions such as chronic pain, cancer, epilepsy, and multiple sclerosis. More than 30 U.S. states as well as countries including Canada, Germany, and Australia have authorized medical marijuana, according to the National Institute on Drug Addiction (NIDA).

The recreational segment is expected to register significantly rapid revenue CAGR during the forecast period due to increasing legalization of cannabis for adult use in various countries, including Canada, Uruguay, and some U.S. states. In addition, it is expected that the movement in consumer preferences from alcohol to goods made from cannabis will drive revenue growth of this segment.

The pharmaceuticals segment is expected to register significantly rapid revenue CAGR during the forecast period due to pharmaceutical companies’ rising R&D efforts to create cannabis-based medications for the treatment of various disorders. In addition, revenue growth of this segment is expected to be driven by regulatory agencies such as the U.S. Food and Drug Administration (FDA) increasingly accepting cannabis-based medicines.

Regional Insights:

The market in North America accounted for largest revenue share in 2022 due to rising legalization of cannabis for both medical and recreational purposes in the U.S. and Canada. Revenue growth of the market in the region is driven by established healthcare system and high degree of awareness about the potential advantages of cannabis for treating a variety of medical ailments.

The market in Europe is expected to account for second-largest revenue share during the forecast period due to rising legalization of medical cannabis in various nations, including Germany, the U.K., and Italy. A number of top pharmaceutical companies are headquartered in the region, and these companies are working to develop medications based on cannabinoids to treat ailments including epilepsy and pain management.

The market in Asia Pacific is expected to register fastest revenue CAGR during the forecast period owing to rising legalization of medicinal cannabis in countries such as Australia and New Zealand. Also, the region has a sizable population and rising prevalence of chronic conditions, both of which are expected to create high demand for goods containing cannabis.

Major companies and competitive landscape:

The global cannabinoids market is highly competitive, with several large and medium-sized players accounting for a significant portion of the market revenue. The market players are constantly adopting various strategies such as mergers and acquisitions, partnerships, product launches, and collaborations to expand their presence in the market. Some of the major companies included in the global cannabinoids market report are:

  • Aurora Cannabis
  • Canopy Growth Corporation
  • Aphria Inc.
  • Tilray Inc.
  • Cronos Group Inc.
  • GW Pharmaceuticals plc
  • Medical Marijuana Inc.
  • Tikun Olam Cannbit Ltd.
  • CV Sciences Inc.
  • Ecofibre Limited

Strategic Development:

  • On 2 October 2019, Canopy Growth Corporation acquired leading cannabinoid-based beverage company BioSteel Sports Nutrition Inc. The acquisition was aimed at expanding Canopy Growth’s presence in the sports nutrition market.
  • On 28 February 2019, Tilray Inc. acquired Manitoba Harvest, which is a leading hemp foods manufacturer. The acquisition was aimed at expanding Tilray’s presence in the hemp foods market.
  • On 5 October 2020, Cronos Group Inc. announced the launch of its Peace Naturals brand, which is a line of CBD-infused skincare products. The brand is designed to provide consumers with a natural and effective way to care for their skin.
  • On 25 June 2018, GW Pharmaceuticals plc received approval from the U.S. Food and Drug Administration (FDA) for its cannabis-based drug, Epidiolex. The drug is used to treat seizures associated with two rare forms of epilepsy.
  • On 4 January 2016, CV Sciences Inc. acquired CanX Inc., a leading cannabinoid research and development company. The acquisition was aimed at expanding CV Sciences’ research capabilities in the cannabinoids market.

New product launches:

Canopy Growth Corporation: on 12 December 2019, Canopy Growth Corporation launched a new line of CBD products called First & Free. The product line includes CBD tinctures, softgels, and creams, and is available in several strengths.

Segments Covered in the Report:

This report offers historical data and forecasts revenue growth at a global, regional, and country level, and provides analysis of market trends in each of segments and sub-segments from 2019 to 2032. For the purpose of this report, Reports and Data has segmented the global cannabinoids market based on product type, application, source, distribution channel, and region:

Cannabinoids Market Report Scope

PARAMETERS DETAILS
The market size value in 2022 USD 2,614.8 Billion
CAGR (2022 – 2032) 10.3%
The Revenue forecast in 2032

USD 5,749.3 Billion

Base year for estimation 2022
Historical data 2020-2021
Forecast period 2022-2032
Quantitative units
  • Revenue in USD Million

  • CAGR from 2022 to 2032

Report coverage Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments covered By, Regional Outlook
By Resin Type Outlook  
By Fiber Type Outlook  
By Industry Vertical Outlook  
Regional scope North America; Europe; Asia Pacific; Latin America ; Middle East & Africa
Country scope U.S.; Canada; U.K.; Germany; France; BENELUX; China; India; Japan; South Korea; Brazil; Saudi Arabia; UAE; Turkey
Key companies profiled Lanxess AG, PlastiComp Inc., Solvay, BASF SE, Celanese Corporation, Mitsubishi Chemical Holdings, Daicel Polymer Ltd., Avient Corporation, Toray Industries Inc., and Asahi Kasei Corporation.
Customization scope 10 hrs of free customization and expert consultation

Product Type Outlook (Revenue, USD Billion; 2019-2032)

Application Outlook (Revenue, USD Billion; 2019-2032)

  • Medical
  • Recreational
  • Pharmaceuticals
  • Food & Beverages
  • Others

Source Outlook (Revenue, USD Billion; 2019-2032)

Natural

Synthetic

Distribution Channel Outlook (Revenue, USD Billion; 2019-2032)

Regional Outlook

(Revenue, USD Billion; 2019-2032)

o North America

  1. U.S.
  2. Canada
  3. Mexico

o Europe

  1. Germany
  2. France
  3. U.K.
  4. Italy
  5. Spain
  6. Benelux
  7. Rest of Europe

o Asia Pacific

  1. China
  2. India
  3. Japan
  4. South Korea
  5. Rest of APAC

o Latin America

  1. Brazil
  2. Rest of LATAM

o Middle East & Africa

  1. Saudi Arabia
  2. U.A.E.
  3. South Africa
  4. Turkey
  5. Rest of Middle East & Africa

Key questions answered by the report

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