Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Medicinal Cannabis Compounding Market size was over USD 7.5 billion in 2024 and is estimated to reach USD 31.8 billion by the end of 2037, expanding at a CAGR of 12.8% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of medical cannabis compounding is assessed at USD 8.4 billion.
Medicinal cannabis has gained significant importance owing to its usefulness in aiding numerous medical symptoms and conditions. It is effectively implemented to overcome loss of appetite, nausea, and pain, especially among patients undergoing chemotherapy. In addition, it assists with anxiety, sleep disorders, and other neurological conditions. According to the July 2023 NLM article, a clinical study was conducted on 51 adult patients, out of which 62.7% reported it to be mostly effective. Besides, chronic pain is becoming a rising concern and especially affecting 20.5% of the 50.2 million population in the U.S. Therefore, its use is increasing after medical approval, thus positively impacting the market globally.
Furthermore, the market is further attributed to the presence and availability of cannabinoids that are considered expensive therapies in comparison to the supply and illegitimate evolution. Regarding the cost-effectiveness, a clinical study was conducted by Value in Health in October 2021, wherein 12 pricing strategy analyses were demonstrated for different diseases, including recurring pain, pediatric drug-based epilepsy, and multiple sclerosis. The gradual cost-effectiveness ratio widely varied from cost saving to over USD 451,800 per quality-adjusted life-year, depending on perspective, setting, medicinal cannabis categories, and indications, thereby driving the overall market expansion.
Medicinal Cannabis Compounding Sector: Growth Drivers and Challenges
Growth Drivers
- Rise in mental health conditions: Mental disorder have become a rising concern that is affecting people across nations, which readily drives the medicinal cannabis compounding market internationally. According to the June 2022 WHO report, 1 in every 8 people, that is 970 million in the world, is residing with this condition. In addition, there has been a 26% increase in anxiety, followed by a 28% increase in depressive disorders, both of which severely affect the mental health, thus driving the market demand.
- Presence of patient-centric health solutions: These are essential since they cater to each and every patient's requirement, which eventually results in care engagement, health satisfaction, and suitable health outcomes. These solutions center around patients and empower them to effectively manage their overall health. In April 2025, DHL Group made a strategic investment of €2 billion (USD 2.3 billion) for the upcoming five years by providing patient care and deliberately serving the healthcare and life science industry, thus suitable for market development.
Challenges
- Strict regulatory policies: The presence of federal agencies to approve medical products and services is generally slow, inefficient, and bureaucratic, which negatively impacts the medicinal cannabis compounding market. The regulatory procedure is also time-consuming, due to which manufacturers are unable to produce products as a result of which health professionals are unable to access patients. This usually delays the commercialization of products in the existing market, leading to delayed health evaluation.
- Poor standardized compounding practice: This results in severe patient harm, which includes limited drug interactions, inappropriate dosage, and contamination. This particular situation arises from restricted standardization in the overall compounding procedure owing to inadequate training and the absence of quality. Besides, compounded drugs do not undergo strict approval processes and rigorous testing, which potentially makes them increasingly susceptible to errors, thus hindering the medicinal cannabis compounding market growth.
Medicinal Cannabis Compounding Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
12.8% |
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Base Year Market Size (2024) |
USD 7.5 billion |
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Forecast Year Market Size (2037) |
USD 31.8 billion |
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Regional Scope |
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Medicinal Cannabis Compounding Segmentation
Ingredient (Metal Cannabidiol (CBD), Delta-9-Tetrahydrocannabinol (THC), Cannabinol (CBN), Cannabigerol (CBG))
Based on the ingredient, the metal cannabidiol (CBD) segment is expected to hold the largest share of 65.8% in the medicinal cannabis compounding market by the end of 2037. This growth is subjected to the potential therapeutic utilization, especially for managing conditions such as anxiety and epilepsy. As per an article published by NLM in April 2020, 29 products were evaluated in a clinical study that comprised low-THC Cannabis sativa extracts. The study denoted that all products had a federal limit of less than 0.3% of tetrahydrocannabinol (THC), along with adjustable amounts of CBD ranging from 0 to 88 mg/mL. Besides, 10 products were within 10% of the total cannabinoid concentrations, addressing 93% of claims, and heavy metal contamination was found in 4 products, with lead being the most prevalent contaminant.
Application (Chronic Pain Management, Neurological Disorders, Oncology, Mental Health Disorders)
Based on application, the chronic pain management segment is projected to hold a considerable rate in the medicinal cannabis compounding market during the forecast timeline. According to the May 2023 NLM article, a clinical study was conducted on 10,415 adult population to evaluate the impact of chronic pain. The study demonstrated the incident rate to be 52.4 cases per 1000 person-years, and the persistence rate of adults suffering from baseline chronic pain was 462 cases per 1000 person-years. However, to overcome the pain, cannabinoids are useful since peripheral nerves comprise receptors for cannabis to block nerve pain, thereby driving the overall market demand.
Our in-depth analysis of the global medicinal cannabis compounding market includes the following segments:
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Ingredient |
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Application |
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Product |
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Formulation |
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End User |
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Customize this ReportMedicinal Cannabis Compounding Industry - Regional Synopsis
North America Market Analysis
North America is projected to account for the largest share of 50.6% in the medicinal cannabis compounding market by the end of the forecast timeline. The growth is fueled by state-level policies based on medical utilization, ongoing research in healthcare, political pressure, and public opinion. Besides, regulatory bodies also play a crucial role in accepting drugs that contain cannabis, and the increased presence of scientific evidence is also a contributing factor to shifting policy modifications and public opinion in the country.
The medicinal cannabis compounding market is growing in the U.S. due to the operational presence of administrative organizations. For instance, in February 2023, the U.S. FDA approved the commercialization of Epidiolex, which is a cannabis-based drug product, and three other synthetic cannabis such as Cesamet (nabilone), Syndros (dronabinol), and Marinol (dronabinol). The organization has approved these products on the basis of a prescription from a certified healthcare provider. These are readily available in most states of the country, thus uplifting market growth.
The medicinal cannabis compounding market growth in Canada depends on the provision of regulatory policies to ensure medical information, purpose, and improvements. According to the May 2024 Government of Canada report, the prevalence of the Cannabis Act removed the personal storage limit of cannabis for patients, resulting in allowing 150 grams and an additional 30 grams of cannabis can be stored based on a 30-day supply routine. Hence, with this acceptance, the market is poised to experience evolution in the country.
APAC Market Statistics
Asia Pacific is anticipated to be the fastest-growing region in the medicinal cannabis compounding market during the forecast timeline. This growth is mainly attributed to medicinal benefits, especially in Australia, Thailand, China, and India. However, countries such as Japan and South Korea are still exploring their utilization for medical purposes. Besides, the region comprises stringent regulations to approve the inclusion of cannabis in medical and pharmaceutical applications with the appropriate range of dosage.
The medicinal cannabis compounding market in India has been significantly growing due to the presence of online stores to readily make ayurvedic drugs available for the population. For instance, CannaMeds India, in one of its 2025 reports, publicized the 100% availability of cannabis products, including 18 CBD oils, 16 medical cannabis pastes, 41 medicated cannabis oils, 15 CBD capsules, 4 canna gummies, and 11 ayurvedic medicines. Therefore, with such availability, the market is projected to expand in the country and cater to the well-being of the population.
The medicinal cannabis compounding market in China is gaining more exposure owing to the aspect of continuous research and developmental activities. According to an article published by NLM in April 2023, cannabis is readily utilized in the regional food sector, wherein cannabis oil comprises 13% to 20% of oleic acid, 40% to 60% omega-6 linoleic acid, and 15% to 30% omega-3 α-linolenic acid. Also, over 100 cannabinoids have been acknowledged and investigated in the country, out of which phenolic compounds are the main research objects, thus driving the market demand.
Companies Dominating the Medicinal Cannabis Compounding Landscape
- Aphria Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Aurora Cannabis
- Cannabis Science Inc.
- Canopy Growth Corporation
- Medical Marijuana Inc.
- VIVO Cannabis Inc.
- TikunOlam Ltd
- Terra Tech Corp.
- Tilray and Cronos Group
- Harvest Health & Recreation
- Green Thumb Industries
- Maricann Group Inc.
- TerrAscend
- Sunderstorm
- Medical Marijuana, Inc
- TikunOlam Europe
- Paindrainer AB
- Tilray Medical
Organizations in the medicinal cannabis compounding market are implementing development strategies through service expansion, product launch, mergers and acquisitions, financial investments, and collaborations. For instance, in April 2025, Tilray Medical proclaimed the accessibility of its medical cannabis edibles, Good Supply Pastilles, for patients in Australia. This launch marks Tilray Medical's first medical cannabis edible offering in the country, providing patients with a sugar-free and vegan-friendly treatment option. Hence, such a product launch tends to impact the overall market positively and drive its expansion globally.
Here's the list of some key players:
In the News
- In September 2024, Paindrainer AB declared its partnership with Care Partners LLC to accelerate the commercial role out in the U.S. and transform chronic pain management by allowing access to several thousand patients with chronic conditions managed by Complete Care Partner (CCP).
- In January 2023, TikunOlam Europe introduced the first and most innovative medical cannabis production unit in Europe in Examilia, Korinthos. The production unit is located in a privately owned area of 56,000 square meters in Korinthos, a total investment that exceeded € 40 million (USD 45.4 million).
Author Credits: Radhika Pawar
- Report ID: 7662
- Published Date: May 12, 2025
- Report Format: PDF, PPT
