Cannabinoid Biosynthesis Market Analysis by Type (CBD, CBG, THC, and Others); and by Application (Anxiety and Pain Management, Nausea Treatment, and Appetite Stimulation) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4142 | Published Date: Feb 22, 2023
The global cannabinoid biosynthesis market is estimated to garner a revenue of ~USD 50 Billion by the end of 2035 by growing at a CAGR of ~16% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 17 Billion in the year 2022. The growth of the market can be attributed to the increasing utilization of cannabinoids for medical purposes. Cannabinoids are highly consumed to treat various medical conditions such as, pain management, autoimmune disorders, Alzheimer’s diseases, glaucoma, seizures, HIV/AIDS, and others. The report published by UNAIDS in 2020 demonstrated the fact that about 37.7 million people in the global population were suffering from HIV.
In addition to these, factors that are believed to fuel the market growth of cannabinoid biosynthesis include the higher legal acceptance of cannabinoids in the world. In 2021, Uruguay, Canada, and a few US states has fully legalized cannabis for adult consumption. Moreover, Cannabis cultivation and personal use are now legal in Malta, the first nation in the EU to do so. Adults will be permitted to possess up to seven grams of cannabis and to have a maximum of four plants in their homes. Additionally, the higher sales of cannabis in the world are expected to boost the market growth. US and Canada are the most important market for the sale of cannabis for adult use, moreover, the use of cannabis is expected to grow in the next 5 years, nig nations, including Israel, Germany, and Australia
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~16% |
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Base Year Market Size (2022) |
~ USD 17 Billion |
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Forecast Year Market Size (2035) |
~ USD 50 Billion |
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Regional Scope |
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Growth Drivers
Rising Demand for People to Legalize the Use of Cannabinoids – The public continues to generally support the legalization of marijuana for medical and recreational uses, with an increasing number of states now permitting its usage. Moreover, the majority of Americans of approximately 88% support both medical and recreational use by adults of marijuana. On other hand, around 30% want it to be legalized for solely medical purposes.
Growing Cases of Multiple Sclerosis – The use of cannabinoids might help many MS patients who experience both pain and spasticity. According to the National Library of Medicine, there will be 2.8 million persons with multiple sclerosis in 2020, with the frequency of the disease being 35.9 per 100,000 people.
Soaring Prevalence of HIV– HIV and AIDS have both been treated with medical cannabis for many years. People with HIV and AIDS can use cannabinoids to address their loss of appetite and weight loss. At the end of 2021, there were around 33.9-43.8 million HIV-positive individuals worldwide. According to estimates of the World Health Organization, 0.7% of adults in the globe between the ages of 15 and 49 have HIV.
Growing Consumption of Cannabis-Based Products – In 2021, sales of cannabis-based products, and cannabis for medical and adult use exceeded around USD 37 billion, and it is further expected to reach nearly USD 102 billion by 2026.
Rise in the Mergers & Acquisition Among Companies– The leading cannabis company Tilray and Aphria merged together to build the largest producer of cannabis in the world. Moreover, after the merger, one corporation will control a staggering 17% of the Canadian cannabis market.
Challenges
The global cannabinoid biosynthesis market is segmented and analyzed for demand and supply by type into CBD, CBG, THC, and others. Out of the four segments, the CBD segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the increasing uses of CBD (cannabis-based products) in various medical explanations. For instance, CBD oil is highly used in the relief from pain, breaking opioid addiction, treating nervous disease, and others. The misuse, abuse, and use of opioids beyond of prescribed medical purposes can result in opioid dependence and other health issues. According to the World Health Organization, about 0.5 million deaths worldwide are related to drug usage. Overdose is a factor in more than 30% of these fatalities, which are connected to opioids in more than 70% of cases. On the other hand, the legalization of CBD is expected to boost segment growth. Despite certain state laws still prohibiting them, hemp-derived CBD products are rich in vitamins A, C, E, and beta carotene, thus they are now permitted on the federal level.
The global cannabinoid biosynthesis market is also segmented and analyzed for demand and supply by application into anxiety and pain management, nausea treatment, and appetite stimulation. Amongst these three segments, the anxiety and pain management segment is expected to garner a significant share. The segment growth is expected on the account of higher uses of cannabinoids for treating anxiety and depression. THC seems to make people feel less anxious at smaller doses and more anxious at higher levels. In addition, CBD appears to reduce anxiety at all tested levels. Around 34% of medicinal marijuana users report using the drug for depression and nearly 50% report using it for anxiety. Furthermore, a higher count of people suffering from depression and anxiety is expected to boost segment growth. As per the statistics of the World Health Organization, 3.8% of the world's population suffers from depression, with 5.0% of adults and 5.7% of persons over 60 years of age affected by depression. Moreover, nearly 280 million individuals in the world suffer from depression.
Our in-depth analysis of the global cannabinoid biosynthesis market includes the following segments:
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By Type |
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By Application |
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The Asia Pacific cannabinoid biosynthesis market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the increasing cases of depression and anxiety that are rapidly expanding the use of medical marijuana. Based on a report released by the National Library of Medicine (NL) in 2021, the prevalence of depression was stated to be 59.2% in the region. Furthermore, the legalization of cannabis and initiatives by the government to boost its production are also expected to boost the market growth in the region. In India, Uttarakhand was the first state to legalize the commercial cultivation of cannabis. Moreover, the Uttarakhand government in association with the India Industrial Hemp Association introduced the project for its cultivation.
Trulieve Cannabis Corp. completed the acquisition of Harvest Health & Recreation, this merger is to create the largest chain of marijuana company in the United States by opening 149 dispensaries and operation in 11 states.
Jazz Pharmaceuticals announced the acquisition of GW Pharmaceuticals plc, a leading player of science and development of cannabis-based medicine. With the purchase of GW, the commercial portfolio of Jazz Pharmaceuticals is to introduced diversity in medicine
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Radhika Gupta, Shivam Bhutani
Ans: Increasing sales of cannabis-based products, rise in the partnership among the companies, higher legalization of cannabis use for adults, and rising use of cannabis for medical purposes are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~16% over the forecast period, i.e., 2023 – 2035.
Ans: Strict rules and regulations for the production of cannabis, and misuse of cannabis are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Amyris, Inc., Willow Bioscience Inc., Cronos Group, Zymergen Inc., Constellation Brands, Inc., Jazz Pharmaceuticals plc, Canopy Growth Corporation, InMed Pharmaceuticals Inc., Hyasynth Biologicals Inc., and Renew Biopharma, Inc.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue-generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, and by region.
Ans: The CBD segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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