Synthetic Cannabinoids Market

Synthetic Cannabinoids Market Outlook (2022-2032)

The global market for synthetic cannabinoids reached a valuation of around US$ 1.82 Billion in 2021 and is slated to accelerate at a CAGR of 21% to top US$ 14.8 Billion by 2032. Demand for dronabinol type of synthetic cannabinoids is high and is set to increase at a CAGR of 20% across the assessment period of 2022 to 2032.

In terms of market contribution, North America is anticipated to catch governing share in the global revenue collection. Tier-1 manufacturers like Noramco, Inc. CannBioRx Life Sciences, and Hyasynth Biologicals, Inc. capture nearly 65% share in the global market.

Report Attributes	Details
Synthetic Cannabinoids Market Size (2022)	US$ 1.82 Billion
Projected Market Value (2032F)	US$ 14.8 Billion
Global Market Growth Rate (2022-2032)	21% CAGR
North America Market Share (2022)	55%
Europe Market Share (2022)	32%
Market Share of Dronabinol type	90%
Key Companies Profiled	Noramco, Inc., CannBioRx Life Sciences, Hyasynth Biologicals, Inc. TheraPix Biosciences, Tetra Bio-Pharma Zynerba Pharmaceuticals GW Pharmaceuticals, Kannalife FSD Pharma

Synthetic Cannabinoids Demand Analysis (2017-2021) in Comparison to Market Estimations (2022-2032)

As per Fact.MR, market research and competitive intelligence provider, the global market for synthetic cannabinoids progressed at a CAGR of over 18% from 2017 to 2021 to reach US$ 1.82 Billion.

Synthetic cannabinoids have emerged as novel therapeutic drugs for epilepsy, spasticity, inflammation, etc. Synthetic cannabinoids for medical purposes have been commercialized since 2017 and are showing rapid adoption for different medical ailments. The synthetic cannabinoid market is projected to grow at an astounding CAGR of more than 21% during the forecast period 2022 – 2032 showcasing a dexterous growth as per Fact.MR’s latest report.

Synthetic cannabinoids to treat nausea and anxiety caused by cancer chemotherapy are projected to open new growth avenues for synthetic cannabinoid manufacturers. Moreover, synthetic cannabinoid therapies for diseases such as arthritis, and acute and chronic pain will bolster the demand for synthetic cannabinoids during the forecast period.

Which Factors are Stimulating Demand for Synthetic Cannabinoids across Geographies?

The growth of the global synthetic cannabinoids market is likely to pin its hope on the regulatory framework about the intake of synthetic cannabinoid products. The rising popularity of e-cigarettes linked with the growing affinity toward the usage of synthetic cannabinoids as a substitute for non-synthetic cannabis in several regions of the world is likely to offer a significant boost to the consumption of synthetic cannabinoids. Besides, synthetic cannabinoids are sold as a legal and safe alternative to marijuana in several parts of the world owing to which, the sales of synthetic cannabinoids have observed growth, particularly among the millennial population.

Novel Techniques Such as Biosynthesis to Increase Foothold of Market Leaders

Earlier manufacturers of synthetic cannabinoids were using naïve techniques of production with help of specialized strains of yeast. Companies such as Librede, Inc. and Hyasynth Biologicals Inc. are actively producing synthetic cannabinoids by using bioengineered yeast strains.

Other manufacturers such as Renew Biopharma have been innovating the production process of synthetic cannabinoids with help of bioengineered microorganisms. The use of bioengineered microorganisms for the synthesis of synthetic cannabinoids instead of conventional processes helps enhance the purity of the compound.

How Crucial is Development in the Synthetic Cannabinoids Market for Start-ups?

New Pipeline of Synthetic Cannabinoid Drugs Projected to Proliferate Market Growth

Synthetic Cannabinoids are anticipated to enter the growth stage by the mid-term forecast. Several biotech startups such as Emerald Health Pharmaceuticals, RespireRx, etc. are pioneering initiatives for the development of synthetic cannabinoid compounds which will augment the growth of the synthetic cannabinoid market. Against this backdrop, synthetic cannabinoids are projected to create an absolute dollar opportunity of US$ 89 Mn during the forecast period.

Manufacturers of synthetic cannabinoid drugs are running clinical trials and phase studies for different drugs which are likely to hit the market in the next two to three years. This will significantly escalate the demand for synthetic cannabinoids. Some the companies such as CV Sciences, Inc. are focused on carrying out all phase clinical trials of the initial drug candidate (CVSI-007) in the foreseeable future.

Moreover, Insys Therapeutics, Inc. has synthetic cannabinoid compounds under the development phase. The company is developing Dronabinol inhalation for agitation in Alzheimer’s disease and cancer-induced anorexia. Manufacturers are thus escalating demand for synthetic cannabinoids shortly.

Which Regional Market is catching the Attention of Synthetic Cannabinoids Suppliers?

Legalization in Potential Markets to Generate New Revenue Streams for Synthetic Cannabinoids

The synthetic cannabinoids market in North America is projected to expand at a significant pace throughout the forecast period. This can be attributed to the extensive availability of products and the existence of prominent companies constantly encouraging their brand among health care professionals in the region. Besides, recent approvals of cannabidiol drugs by the FDA in the U.S. for the treatment of two severe forms of epilepsy: Lennox-Gastaut syndrome and Dravet syndrome. This is anticipated to drive the market in the region.

Cannabinoids have been legalized in many countries and this number is expected to increase in the forecast period. Synthetic cannabinoids will benefit from authorization for medical usage. Countries such as China and India are prominent drug and pharmaceutical markets where synthetic cannabinoid legalization for pharmaceutical applications may play a vital role in boosting sales of synthetic cannabinoids in countries.

By region Latin America is projected to grow 6.8X during the forecast period as countries in Latin America are embracing the legalization of synthetic cannabinoids in a big way.

Country-wise Analysis

What is the Synthetic Cannabinoids Demand Outlook for the U.S.?

Recent FDA Approvals of Cannabis for Treatment Purposes Will Boost the Market Growth

As the United States accelerates the state-approved production and supply of cannabis-derived pharmaceutical products, there are signs that synthetic cannabinoids will benefit the pharma industry over cannabinoids obtained from marijuana plants, providing an opportunity for CMOs.

Noramco (Athens, GA, US), a manufacturer of controlled substances, will add commercial-scale capacity at its Athens, Georgia, US facility for dronabinol (tetrahydrocannabinol), a synthetic cannabinoid approved by the FDA as an anti-emetic in chemotherapy patients, it announced this quarter. Following implementation, Noramco will supply both dronabinol and cannabidiol from its facilities in the US and Europe. The industrial expansion in the U.S will scale up current clinical production capability to also include commercial production.

Will China Offer Increasing Opportunities for Suppliers of Synthetic Cannabinoids?

Increasing Clinical Trials of Lab-made Drugs to Proliferate Demand for Synthetic Cannabinoids

In terms of market revenue, China is estimated to capture a significant share in, accounting for nearly 22% in 2022. The encouraging government approvals of synthetic cannabinoid products will boost market growth over the forecast period.

In May 2021, China will become the world's first country to regulate all synthetic cannabinoid substances, in a bid to get ahead of new variations whose chemical properties are not yet subject to regulation, the country's drugs control office said on Tuesday.

Synthetic cannabinoids are lab-made drugs originally designed to produce similar effects to cannabis, but which are often far stronger and carry a greater health risk, states the Fact.MR report.

Category-wise Insights

Which Type of Synthetic Cannabinoids is Gaining the Highest Traction?

Synthetic Cannabinoids Sales to Soar as Dronabinol Maintains its Lead

Dronabinol as a type of synthetic cannabinoid has maintained its lead in the market and is expected to experience a higher growth rate vis-a-vis Nabilone. Dronabinol for medical use is being manufactured by almost all prominent market players. Moreover, Dronabinol is an emerging suitable therapeutic compound that binds to cannabinoid (CBR) receptors giving desired results during disease treatment.

Dronabinol has superior investment backing which is boosting its uptake in the market. A vast majority of the companies in the synthetic cannabinoids market have been focusing on products that are in their clinical trial phase. For instance, TheraPix Biosciences, Tetra Bio-Pharma, and Zynerba Pharmaceuticals are some of the companies that are conducting clinical trials for their compounds. Other companies like GW Pharmaceuticals, Kannalife, and FSD Pharma are developing synthetic cannabinoids. Such novel initiatives will enable manufacturers to expand their profit pools in the synthetic cannabinoids market.

Nabilone showcases a marginal contribution to the global synthetic cannabinoids market and is projected to grow 4.5X over a period of forecast 2022 – 2032, due to increased legal and pharmaceutical usage in the United States, Canada, and Europe.

Competitive Landscape

Synthetic cannabinoid market players are partnering with research associations and organizations to carry out potential research on synthetic cannabinoids. Few pharma giants are investing in startup companies to push research on synesthetic cannabinoids and expand the production capacities of synthetic cannabinoids.

• In September 2021, Noramco announced that its cannabinoids business division will become a separate company named Purisys, LLC and is expanding its production capacity of Dronabinol and cannabidiol (CBD) in its production facility based in Athens, United States.
• In July 2021, KBL Merger Corp. IV, a Special Purpose Acquisition Company (SPAC), announced that it has executed a definitive business combination agreement for the merger of a wholly owned subsidiary of KBLM with CannBioRx Life Sciences Corp., a drug development company focused on treating inflammatory diseases.
• In September 2021, Hyasynth, a sustainable biotechnology company, received a $2.5M milestone payment for its commercialization achievements in being first-to-market with cannabidiol (CBD) produced and extracted from yeast. The additional investment came from previous investors including Organigram Holdings Inc., a leading licensed producer of cannabis.

Key Segments in Synthetic Cannabinoids Industry Research

• By Type :

  • Dronabinol
  • Nabilone

• By Region :

  • North America 
  • Europe 
  • Asia Pacific 
  • Middle East & Africa 
  • Latin America