Global Cannabis Pharmaceutical Market Size, Share and Trends Analysis Report – Industry Overview and Forecast to 2032

Global Cannabis Pharmaceutical Market Segmentation, By Product Type (Capsules, Concentrates, Edibles, and Other), Drugs (Epidiolex, Marinol, Cesamet, Sativex, and Others), Compound Type (Tetrahydrocannabinol (THC), Cannabidiol (CBD), and Balanced THC & CBD), Application (Inflammation, Chronic Pain, Epilepsy, Sleep Disorders, Anorexia, Schizophrenia, and Others), End-Users (Clinic, Hospital, and Others), Distribution Channel (Hospital Pharmacy, Retail Pharmacy, and Online Pharmacy)- Industry Trends and Forecast to 2032

Cannabis Pharmaceutical Market Size

• The global cannabis pharmaceutical market size was valued at USD 129.51 million in 2024 and is expected to reach USD 4,660.45 million by 2032, at a CAGR of 56.5% during the forecast period
• The market growth is largely fueled by increasing regulatory acceptance and legalization of cannabis‑based therapies, expanding clinical research in chronic pain, epilepsy and neurological disorders, and rising patient/physician awareness of cannabinoid‑derived treatments
• Furthermore, rising demand for pharmaceutical‑grade cannabis formulations, improved drug delivery systems and integration of cannabis therapeutics into mainstream healthcare settings are establishing cannabis pharmaceuticals as the modern access channel of choice. These converging factors are accelerating the uptake of cannabis‑pharma solutions, thereby significantly boosting the industry’s growth

Cannabis Pharmaceutical Market Analysis

• Cannabis-based pharmaceuticals, offering medical therapies derived from cannabinoids such as Epidiolex, Marinol, Cesamet, and Sativex, are increasingly vital components of modern healthcare systems in both developed and emerging markets due to their therapeutic potential in chronic pain, neurological disorders, epilepsy, and other medical conditions, along with growing regulatory acceptance
• The escalating demand for cannabis pharmaceuticals is primarily fueled by increasing legalization and regulatory approvals for medicinal cannabis, rising prevalence of chronic and neurological disorders, growing awareness among patients and healthcare providers, and expanding investment in R&D for novel cannabis-based therapeutics
• North America dominated the cannabis pharmaceutical market with the largest revenue share of 42.5% in 2024, driven by favorable regulatory frameworks, strong healthcare infrastructure, high adoption of prescription cannabis drugs, and robust R&D investment, with the U.S. leading growth through approvals of Epidiolex and other key cannabinoid-based therapies for epilepsy and chronic pain
• Asia-Pacific is expected to be the fastest-growing region in the cannabis pharmaceutical market during the forecast period due to increasing healthcare investment, growing awareness of medical cannabis benefits, expansion of clinical trials, and favorable policy changes in countries such as Australia, Thailand, and Japan
• Capsules segment dominated the cannabis pharmaceutical market with a market share of 38.9% in 2024, driven by ease of standardization, regulatory approval, and acceptance in clinical settings for oral administration of cannabinoid-based therapies

Report Scope and Cannabis Pharmaceutical Market Segmentation  

Cannabis Pharmaceutical Market Trends

Growing Focus on Non‑Psychoactive and Targeted Cannabinoid Therapies

• A significant and accelerating trend in the global cannabis pharmaceutical market is the development of non‑psychoactive cannabinoid therapies and targeted formulations for specific medical conditions, enhancing safety and regulatory acceptance

  • For instance, Epidiolex (a CBD-based therapy) has gained approval for refractory epilepsy, prompting pharmaceutical companies to focus on orphan and niche indications using cannabinoids

• Targeted cannabinoid therapies are also being developed in capsule, spray, and inhalation formats, improving patient compliance and therapeutic outcomes for chronic pain and neurological disorders
• Precision medicine approaches, including biomarker-guided dosing and tailored cannabinoid combinations, are shaping R&D pipelines and creating differentiated product opportunities
• The trend toward broader clinical adoption is driven by growing clinical evidence, improved standardization of cannabinoid compounds, and acceptance of medical cannabis within healthcare systems
• Increasing integration of digital health technologies, such as telemedicine and AI-enabled patient monitoring, is supporting personalized cannabis therapy and improving treatment adherence
• Expansion of research into rare and complex diseases is encouraging pharmaceutical companies to develop new cannabinoid-based therapies beyond conventional indications

Cannabis Pharmaceutical Market Dynamics

Driver

Regulatory Liberalisation and Expanding Clinical Evidence Base

• The growing number of regulatory approvals and policy reforms for medical cannabis is a major driver, as healthcare providers gain confidence in prescribing cannabinoid therapies

  • For instance, multiple countries have revised regulations to permit cannabinoids for therapeutic use, enabling market entry and expanding patient access

• Increasing clinical evidence supporting cannabis pharmaceuticals for epilepsy, chronic pain, and neurological disorders is accelerating adoption and investment in this market
• Unmet medical needs in indications where conventional therapies are inadequate, such as treatment-resistant epilepsy, are fueling demand for novel cannabinoid therapies
• Advances in manufacturing practices and compound standardization are reducing barriers to entry and boosting confidence among stakeholders, supporting market growth
• Rising patient and physician awareness of cannabinoid efficacy and safety is increasing prescription rates and contributing to market expansion
• Investment in strategic partnerships and licensing agreements between pharmaceutical companies and cannabis cultivators is facilitating faster drug development and commercialization

Restraint/Challenge

Complex Regulatory Landscape and Clinical Validation Hurdles

• A key challenge is the fragmented regulatory landscape across regions, which hampers global scaling and delays product approvals despite therapeutic promise

  • For instance, many countries still impose strict controls on research, manufacturing, and distribution of cannabis-derived pharmaceuticals, limiting commercialization

• The need for robust long-term clinical trials to validate safety, efficacy, and dosing for newer indications beyond epilepsy remains a significant hurdle
• Pharmaceutical companies face challenges in scaling production under GMP standards while maintaining consistency of active compounds and meeting regulatory requirements
• Pricing, reimbursement, and physician acceptance of cannabinoid therapies remain uncertain in many markets, which may slow uptake despite favorable regulatory changes
• Intellectual property and patent-related issues around cannabinoid formulations can limit market entry for new players and restrict competition
• Variability in patient response and potential drug-drug interactions create additional challenges in clinical validation and regulatory approval processes

Cannabis Pharmaceutical Market Scope

The market is segmented on the basis of product type, drugs, compound type, application, end-users, and distribution channel.

• By Product Type

On the basis of product type, the cannabis pharmaceutical market is segmented into capsules, concentrates, edibles, and other. The capsules segment dominated the market with the largest revenue share of 38.9% in 2024, driven by the ease of standardized dosing and patient familiarity with capsule-based medications. Capsules provide stability for cannabinoids, which ensures consistent therapeutic effects over longer durations. This segment sees high adoption in chronic treatments such as epilepsy, pain management, and inflammation. Hospitals and clinics prefer capsules due to precise dosage administration and prescription compliance. Regulatory approvals across multiple regions further strengthen their market position. The segment also benefits from the availability of diverse formulations and integration into conventional pharmaceutical distribution channels.

The edibles segment is expected to witness the fastest growth from 2025 to 2032. Rising consumer preference for discreet, palatable consumption methods fuels this growth. Edibles offer an alternative for patients who avoid inhalation or capsules, making them suitable for pediatric and geriatric populations. Flavor innovations and precise cannabinoid dosing enhance their appeal and safety profile. Expansion of medical cannabis programs and increasing public awareness contribute to rapid adoption. The segment also benefits from regulatory relaxation in select markets and rising demand for lifestyle-oriented therapeutic options.

• By Drug

On the basis of drugs, the market is segmented into epidiolex, marinol, cesamet, sativex, and others. Epidiolex dominated the market due to FDA approval for severe pediatric epilepsy and its proven efficacy and safety. Its adoption is driven by structured prescription processes and insurance coverage in North America and Europe. Hospitals and specialty clinics favor Epidiolex for chronic seizure management because of predictable outcomes and minimal psychoactive effects. The strong clinical evidence and ongoing research for expanded indications reinforce its leadership. Physicians’ trust and patient adherence further support its dominance. The availability of oral formulations enhances convenience for long-term therapy.

Sativex is expected to grow at the fastest rate from 2025 to 2032, driven by its use in multiple sclerosis spasticity and chronic pain. Its balanced THC & CBD formulation provides symptom relief without strong psychoactive effects, appealing to a wider patient base. Regulatory approvals in emerging markets and increasing clinical adoption fuel growth. Outpatient clinics and hospitals are expanding access, further supporting rapid uptake. Innovations in formulation and delivery methods enhance patient convenience. The growing awareness of cannabinoid-based therapies contributes to Sativex’s accelerated adoption.

• By Compound Type

On the basis of compound type, the market is segmented into Tetrahydrocannabinol (THC), Cannabidiol (CBD), and Balanced THC & CBD. CBD dominated the market due to its non-psychoactive properties and broad therapeutic applicability. It is widely used for epilepsy, chronic pain, anxiety, and sleep disorders. Regulatory approvals and clinical evidence support its safe adoption across diverse patient populations. CBD is integrated into multiple dosage forms including oils, capsules, and topicals, expanding its reach. Hospitals and retail pharmacies drive consistent demand through prescription and OTC availability. The growing awareness of CBD’s therapeutic potential enhances adoption across global markets.

The balanced THC & CBD segment is projected to witness the fastest growth from 2025 to 2032, due to synergistic effects in managing chronic pain, inflammation, and spasticity. Patients prefer formulations that offer therapeutic benefits of THC while reducing psychoactive side effects via CBD moderation. Expansion in emerging markets and relaxed regulations accelerate adoption. Ongoing clinical trials and increasing physician recommendations support rapid uptake. Personalized cannabinoid therapies also drive the growth of this segment. Convenience of multiple dosage forms further enhances patient preference.

• By Application

On the basis of application, the market is segmented into inflammation, chronic pain, epilepsy, sleep disorders, anorexia, schizophrenia, and others. Epilepsy dominated the market due to strong adoption of CBD-based drugs such as Epidiolex. Its dominance is reinforced by regulatory approvals and structured prescription protocols in North America and Europe. Hospitals and clinics provide monitoring and precise dosing for effective seizure control. Patients benefit from predictable outcomes and minimal side effects compared to traditional antiepileptic drugs. Clinical evidence supports widespread use, especially in pediatric populations. The integration of epilepsy treatments into hospital and specialty pharmacy channels strengthens the segment’s leadership.

Chronic pain is expected to witness the fastest growth from 2025 to 2032 due to increasing prevalence of arthritis, neuropathic, and post-surgical pain. Patients seek alternatives to opioids, making cannabinoid-based therapies attractive. Clinical studies demonstrate efficacy in pain relief and improved quality of life. Expansion of medical cannabis programs globally drives accessibility. Clinics and outpatient centers increasingly provide pain management services using cannabinoids. Personalized treatment plans and combination therapies further boost market growth.

• By End-User

On the basis of end-users, the market is segmented into clinic, hospital, and others. Hospitals dominate the market due to structured prescription processes and professional oversight. Hospital pharmacies ensure controlled dispensing, adherence to dosing guidelines, and monitoring of patient outcomes. Specialized departments support adoption of clinically approved drugs. Hospitals also provide insurance-covered access to costly cannabinoid medications. The trusted institutional environment encourages physician-led treatment adoption. High patient volumes and repeat prescriptions reinforce hospital dominance.

Clinics are expected to witness the fastest growth from 2025 to 2032, due to rising outpatient services offering cannabinoid therapies. Clinics provide personalized care and rapid access for patients with chronic conditions. Telehealth and consultation services further enhance adoption. Clinics are increasingly integrated with online pharmacy platforms, improving convenience. Rising awareness and physician training programs support rapid expansion. Patient preference for outpatient care drives growth in this end-user segment.

• By Distribution Channel

On the basis of distribution channel, the market is segmented into hospital pharmacy, retail pharmacy, and online pharmacy. Hospital pharmacies lead the market due to integration with clinical workflows and prescription management. Controlled dispensing ensures adherence to dosage protocols. Hospitals also provide insurance coverage for expensive cannabinoid-based drugs. Pharmacy staff guide proper use and monitor adverse effects. Established distribution networks strengthen accessibility. Hospitals remain the primary channel for high-value prescription medications.

Online pharmacies are projected to witness the fastest growth from 2025 to 2032. The convenience of home delivery, discreet access, and telehealth integration drive adoption. Patients in remote or underserved areas benefit from rapid access to medications. E-prescriptions facilitate seamless purchases. Growth is fueled by increased digital literacy and acceptance of e-commerce for pharmaceuticals. Online channels are expanding rapidly in both emerging and mature markets. Online channels appeal to patients in remote areas and those seeking privacy, particularly for chronic conditions such as pain management, anxiety, and sleep disorders.

Cannabis Pharmaceutical Market Regional Analysis

• North America dominated the cannabis pharmaceutical market with the largest revenue share of 42.5% in 2024, driven by favorable regulatory frameworks, strong healthcare infrastructure, high adoption of prescription cannabis drugs, and robust R&D investment, with the U.S. leading growth through approvals of Epidiolex and other key cannabinoid-based therapies for epilepsy and chronic pain
• Patients and healthcare providers in the region highly value clinically approved cannabinoid-based drugs for their efficacy, safety, and standardized dosing, especially in prescription-based settings such as hospitals and specialty clinics
• The widespread adoption is further supported by strong healthcare infrastructure, high patient awareness, increasing insurance coverage, and growing investment in R&D for cannabinoid pharmaceuticals. These factors collectively establish North America as the leading region for both established and emerging cannabis-based therapies

U.S. Cannabis Pharmaceutical Market Insight

The U.S. cannabis pharmaceutical market captured the largest revenue share of 79% in 2024 within North America, fueled by widespread adoption of FDA-approved cannabinoid-based drugs and expanding awareness of medical cannabis therapies. Patients and healthcare providers are increasingly prioritizing alternative treatments for chronic pain, epilepsy, multiple sclerosis, and sleep disorders. The growing availability of prescription-based CBD and balanced THC & CBD medications, coupled with increasing insurance coverage, further propels market growth. Integration of telehealth and online pharmacy platforms has made access to cannabinoid therapies more convenient. Furthermore, ongoing clinical trials and R&D investments in innovative formulations significantly contribute to the expansion of the U.S. cannabis pharmaceutical market.

Europe Cannabis Pharmaceutical Market Insight

The Europe cannabis pharmaceutical market is projected to expand at a substantial CAGR throughout the forecast period, driven by increasing legalization of medical cannabis programs and growing clinical adoption of cannabinoid therapies. Countries such as Germany, the U.K., and Italy are witnessing a rise in patient access to CBD and THC-based prescription medications. The growth is supported by increasing urbanization, patient awareness, and the integration of cannabis therapies into hospital and retail pharmacy channels. European healthcare providers value the standardized dosing and efficacy of cannabinoid drugs for chronic conditions. Furthermore, expansion of clinical trials and regulatory reforms across multiple countries is fostering the overall adoption of cannabis pharmaceuticals.

U.K. Cannabis Pharmaceutical Market Insight

The U.K. cannabis pharmaceutical market is anticipated to grow at a noteworthy CAGR during the forecast period, driven by rising awareness of medical cannabis and increasing physician acceptance of cannabinoid therapies. Concerns regarding chronic pain, sleep disorders, and neurological conditions are encouraging patients to explore cannabis-based medications. The U.K.’s established healthcare system and robust e-prescription and retail infrastructure enhance accessibility. In addition, government support for clinical research and medical cannabis programs is expected to continue stimulating market growth. Patients increasingly prefer prescription-based cannabis therapies over unregulated alternatives, supporting sustainable market expansion.

Germany Cannabis Pharmaceutical Market Insight

The Germany cannabis pharmaceutical market is expected to expand at a considerable CAGR during the forecast period, fueled by increasing awareness of therapeutic cannabis and strong government backing for medical cannabis programs. Germany’s well-developed healthcare infrastructure promotes adoption in hospitals, clinics, and specialty pharmacies. The country emphasizes safe, standardized, and evidence-based cannabinoid therapies, particularly for chronic pain, multiple sclerosis, and epilepsy. Integration of cannabis medications into existing treatment protocols ensures patient compliance and confidence. Innovations in balanced THC & CBD formulations and growing insurance coverage further support market growth.

Asia-Pacific Cannabis Pharmaceutical Market Insight

The Asia-Pacific cannabis pharmaceutical market is poised to grow at the fastest CAGR of 25% during the forecast period of 2025 to 2032, driven by increasing awareness of medical cannabis and supportive regulatory developments in countries such as Australia, Japan, China, and India. Rising prevalence of chronic conditions, increasing urbanization, and improving healthcare infrastructure are boosting demand for cannabinoid-based therapies. Expansion of clinics, hospitals, and online pharmacy platforms enhances accessibility for patients. In addition, government initiatives promoting digital health and clinical research in cannabinoid pharmaceuticals are contributing to the region’s rapid market growth.

Japan Cannabis Pharmaceutical Market Insight

The Japan cannabis pharmaceutical market is gaining momentum due to the country’s technologically advanced healthcare system and increasing patient awareness of cannabinoid therapies. The adoption of CBD and balanced THC & CBD formulations is driven by chronic pain management, neurological conditions, and sleep disorders. Integration of telehealth services and online pharmacies is improving accessibility for patients. Japan’s aging population is also expected to increase demand for safe and convenient therapeutic options. Government-backed clinical trials and research programs further encourage the adoption of standardized cannabis-based medications.

India Cannabis Pharmaceutical Market Insight

The India cannabis pharmaceutical market accounted for the largest revenue share in Asia-Pacific in 2024, attributed to the country’s growing awareness of medical cannabis, rising prevalence of chronic conditions, and expanding healthcare infrastructure. India’s increasing adoption of innovative therapies, including prescription-based CBD and THC formulations, is driving market growth. The rise of telemedicine and online pharmacy platforms enhances patient access, especially in urban areas. Government support for research and clinical studies, alongside expanding regulatory frameworks for medical cannabis, is expected to accelerate adoption. In addition, affordability and availability of localized formulations contribute to the rapid expansion of the Indian cannabis pharmaceutical market.

Cannabis Pharmaceutical Market Share

The Cannabis Pharmaceutical industry is primarily led by well-established companies, including:

• Ananda Pharma (U.K.)
• Bedrocan (Netherlands)
• SOMAÍ Pharmaceuticals LTD (Portugal)
• PANAXIA (Israel)
• Medical Marijuana, Inc. (U.S.)
• Tilray Brands, Inc. (U.S.)
• GW Pharmaceuticals plc (U.K.)
• Cronos Group Inc. (Canada)
• Aurora Cannabis Inc. (Canada)
• Canopy Growth (Canada)
• ODI Pharma AB (Sweden)
• Canndoc Ltd. (Israel)
• Celadon Pharmaceuticals (U.K.)
• Linneo Health (Spain)
• MediPharm Labs Corp. (Canada)
• MG Health. (Canada)
• Cannadis Europe B.V. (Netherlands)
• Linneo Health SLU (Spain)

What are the Recent Developments in Global Cannabis Pharmaceutical Market?

• In July 2025, HYTN Innovations Inc. (Canada) received a Cannabis Drug License (CDL) from Health Canada, enhancing its capability to manufacture cannabis‑derived pharmaceutical drugs. This positions HYTN among a select group of companies authorized to produce cannabis‑based prescription medications, supporting its aim to be a leading supplier of GMP‑grade cannabinoid APIs and finished dosage forms
• In June 2025, Tilray Medical (a division of Tilray Brands) secured the first authorization from the Ministero della Salute to import and distribute EU GMP certified medical cannabis flower for therapeutic use in Italy. The authorization covers three varieties of cannabis flowers produced in Tilray’s EU GMP facility in Portugal: THC 25%, THC 18% and a balanced THC 9%/CBD 9% formulation
• In November 2024, The U.S. Food & Drug Administration (FDA) cleared a Phase 2 clinical trial designed to study smoked high‑THC cannabis flower for treatment of veterans with moderate‑to‑severe post‑traumatic stress disorder (PTSD)
• In May 2024, The Drug Enforcement Administration (DEA) proposed a rule to reclassify cannabis from Schedule I to Schedule III under the U.S. Controlled Substances Act. This marks a major regulatory shift, since Schedule I substances are deemed to have “no currently accepted medical use” and a high potential for abuse
• In November 2021, A Phase II trial of Sativex (a balanced THC/CBD oromucosal spray) for recurrent glioblastoma (GBM) was announced in the UK, covering ~15 NHS hospital sites. This represents a notable oncology application of cannabinoid based therapy which traditionally has been more focused on neurologic/epilepsy/pain uses

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