Cannabinoids Market Report 2025

The cannabinoids market size has grown exponentially in recent years. It will grow from $39.45 billion in 2024 to $47.43 billion in 2025 at a compound annual growth rate (CAGR) of 20.2%. The growth in the historic period can be attributed to medical cannabis legalization, increasing acceptance of cannabis, research and development, regulatory changes, growing awareness of cannabinoid benefits, investments in cannabis industry, consumer trends toward natural products.

The cannabinoids market size is expected to see exponential growth in the next few years. It will grow to $101.9 billion in 2029 at a compound annual growth rate (CAGR) of 21.1%. The growth in the forecast period can be attributed to wider legalization and decriminalization, research advancements, diverse product offerings, international market expansion, public health awareness initiatives. Major trends in the forecast period include increasing acceptance and destigmatization, diversification of product offerings, innovation in delivery methods, quality and safety standards, social equity and inclusivity initiatives.

The increasing prevalence of chronic diseases is expected to drive the growth of the cannabinoid market. Chronic diseases are long-lasting conditions that typically require ongoing medical care. A systematic review of randomized controlled trials examined the effectiveness of cannabinoids, including smoked marijuana, oromucosal extracts of cannabis-based medications, nabilone, dronabinol, and a new THC analogue, in managing chronic noncancer pain. For example, in September 2023, the World Health Organization (WHO), a Switzerland-based United Nations agency, reported that 41 million deaths, or 74% of global deaths, were caused by non-communicable diseases (NCDs) or chronic diseases annually. Consequently, the growing prevalence of chronic diseases is fueling the expansion of the cannabinoid market.

The rising prevalence of cancer is expected to drive the growth of the cannabinoid market. Cancer is a condition in which some of the body's cells grow uncontrollably and spread to other parts of the body. Cannabinoids are increasingly used to support cancer patients by managing symptoms such as neuropathy, nausea, pain, vomiting, appetite loss, and weight loss. Additionally, cannabinoids can influence cancer progression by stimulating autophagy and affecting signaling pathways that lead to apoptosis (cell death). For example, in January 2022, the American Cancer Society reported an estimated 1,918,030 new cancer cases and 609,360 cancer-related deaths in the United States. Among these, around 350 people are expected to die each day from lung cancer, which remains the leading cause of cancer-related deaths. As a result, the increasing prevalence of cancer is contributing to the growth of the cannabinoid market.

Major companies in the cannabinoids market are strategically focusing on introducing advanced cannabis-based cosmetic solutions to gain a competitive edge. Cannabis-based cosmetic solutions, like CBG and CBD rescue cream, are formulated with cannabis derivatives to offer skin moisturizing, anti-aging, and anti-inflammatory effects. For instance, in November 2022, British Cannabis, a UK-based producer, introduced the Synergy CBG and CBD Rescue Cream, the first cannabis cosmetic in the UK to undergo clinical trials. This innovative product reflects a commitment to creating comprehensive skincare solutions in the cannabinoid market.

Major companies in the cannabinoids market are focusing on developing innovative solutions like fast-acting cannabinoids to enhance the efficacy and speed of therapeutic effects. Fast-acting cannabinoids refer to formulations that deliver quicker relief compared to traditional methods. For example, in August 2024, Rare Cannabinoid, a US-based health and wellness company, launched Fast-Acting Nano THC + CBC Mood Mints. These mints provide rapid effects, allowing users to feel the benefits of delta-9-THC and cannabichromene (CBC) within 15 to 30 minutes, compared to the usual 30 to 90 minutes for traditional edibles. Using advanced nanotechnology, the mints offer customizable dosing options, ideal for microdosing and personalized use.

In January 2022, Dermapharm Holding SE, a Germany-based pharmaceutical company, acquired C³ Group for an undisclosed amount. The acquisition aimed to strengthen Dermapharm Holding's position in the growing cannabis market by enhancing its cannabinoid production capabilities, expanding its distribution channels across Europe, and deepening its expertise in therapeutic solutions for serious medical conditions. This move comes as regulatory changes increasingly favor the acceptance of medical cannabis. C³ Group, a Poland-based company, specializes in cannabinoid compounds, contributing to Dermapharm's strategic push into this emerging sector.

Major companies operating in the cannabinoids market are The Supreme Cannabis Company Inc., Elixinol Global Limited, GW Pharmaceuticals PLC., Tilray Inc., Aurora Cannabis Inc., Innovative Ind Props, Curaleaf Holdings Inc., Green Thumb Industries, Verano Holdings, Trulieve Cannabis Corp., Cresco Labs Inc., Cronos Group, TerrAscend Corp., Canopy Growth Corp., Sundial Growers Inc., Decibel Cannabis Company, Auxly Cannabis Group, Red White & Bloom Brands, BZAM Ltd, Delta 9 Cannabis Inc., Mylan N.V., Westleaf Cannabis Inc., GrowGeneration, The Scotts Miracle-Gro Company, Jazz Pharmaceuticals PLC, Aphria Inc., Organigram Inc., Alkem labs, MediPharm Labs Corp., The Valens GroWorks Inc.

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

Cannabinoids are specific chemical compounds found in marijuana that exert effects on the immune and central nervous systems similar to certain drugs. These compounds are utilized to alleviate side effects or symptoms associated with chronic diseases, particularly in the context of cancer treatment.

The primary types of cannabinoid products include cannabidiol (CBD), tetrahydrocannabinol (THC), cannabinol, and other variants. Cannabidiol is employed in the treatment of conditions such as seizures, anxiety, insomnia, chronic pain, and tobacco addiction. It is a chemical component derived from the cannabis sativa plant or hemp. The distribution channels for cannabinoids encompass hospital pharmacies, retail pharmacies, and online stores. Applications for cannabinoids span medical, recreational, and industrial hemp uses.

The cannabinoids protection market research report is one of a series of new reports that provides cannabinoids market statistics, including cannabinoids industry global market size, regional shares, competitors with a cannabinoids market share, detailed cannabinoids market segments, market trends and opportunities, and any further data you may need to thrive in the cannabinoids industry. This 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.

The cannabinoids market consists of sales of cannabidiolic acid, flowers/buds and concentrates. 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 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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