Medicinal Cannabis Compounding Market Size, Share, Industry, Forecast and outlook (2024-2031)

Medicinal Cannabis Compounding Market is segmented By Product Type (Extracts, Flowers, Leaves, Others), By Compound Type (Cannabidiol (CBD), Tetrahydrocannabinol (THC), Balanced THC & CBD), By End-User (Pharmaceutical Industry, Research and Development Centers, Others)By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Medicinal Cannabis Compounding Market Overview

The "Global Medicinal Cannabis Compounding Market" is predicted to reach at a high CAGR 20.5% during the forecast period (2024-2031) 

Cannabidiol (CBD) and tetrahydrocannabinol (THC) are the major constituents of the plant Cannabis Sativa. It has been found effective in many ailments such as alzheimer's disease, appetite loss, cancer, crohn's disease, diseases affecting the immune system like HIV/AIDS or multiple sclerosis (MS), eating disorders such as anorexia, epilepsy and many more. Cannabis is safer and has less severe side effects in comparison to other treatment options.

Medicinal Cannabis Compounding Market Scope

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Source: DataM Intelligence Analysis (2022)

Medicinal Cannabis Compounding Market Dynamics

The medicinal cannabis compounding market growth is driven by the proven medicinal properties of cannabis, legalization of cannabis, active research genetic development and modification of the plant, and advancements in intellectual property rights of cannabis.

Rising adoption of cannabis in pharmacotherapy, is expected to drive the growth in the forecast period

Cannabis is a safer and has less severe side effects in comparison to other treatment options. It also finds usage and other treatments either to enhance their efficacy or combat adverse side effects. According to the US Government Accountability Office (under State Medical Marijuana Laws), symptoms and conditions that can be treated by cannabis include Alzheimer's disease, anorexia, HIV-AIDS, glaucoma, cancer, arthritis, epilepsy, nausea, pain, cachexia, Crohn's disease, migraines, multiple sclerosis, spasticity, and wasting syndrome. For example, it is very effective in reducing nausea and increasing appetite among chemotherapy patients. In addition, it is also used in combination with traditional opioid painkillers, enabling patients to reduce the dosage and frequency of opioids significantly and impart greater pain relief.

Increasing legalization of cannabis, is expected to drive the growth in the forecast period

Many countries, such as Australia, Canada, Chile, Colombia, Germany, Greece, Israel, Italy, the Netherlands, Peru, Poland, Portugal, and Uruguay, have legalized cannabis for medicinal purposes. In the United States provinces, where cannabis has been legalized, consumers are mostly aged 50 years and above. Owing to the higher risk of chronic diseases post 50 years of age and the effectiveness of cannabis on such conditions, this demographic profile is expected to boost the demand for medicinal cannabis in the country.

Strict regulatory guidelines coupled with the chronic side effects is likely to hamper the market growth

However, the lack of data on the long-term safety of medical cannabis, chronic side effects such as fatigue, dizziness and hallucinations, and the implementation of strict regulatory guidelines for the cultivation and marketing of cannabis are some key factors that are expected to continue to hamper the market growth.

COVID-19 Impact Analysis On Medicinal Cannabis Compounding Market

Like every other market, COVID-19 harmed the medicinal cannabis compounding market as well. The imposition of lockdown limited consumers from visiting brick-and-mortar shops. However, many cannabis companies began relying heavily on social media and e-commerce platforms to market to consumers during the year. Cannabis retail outlets, producers, manufacturers, distributors, and warehouses were deemed essential services by the Alberta Government on March 30, 2022. As a result, cannabis businesses and services continued to serve Albertans throughout the COVID-19 pandemic.

Medicinal Cannabis Compounding Market Segment Analysis

The extracts segment is expected to hold largest share in this market segment

As cannabis extracts act as body’s own chemicals its effectiveness increases with lesser side effects. The full-spectrum extract includes the complete cannabinoids range that can be extracted from a marijuana plant. There are more than 100 other cannabinoids present in their original forms apart from CBD. Due to their availability, full-spectrum extracts produce an entourage effect, a collaborative relationship between terpenes and cannabinoids that intensifies the healing properties of cannabinoids.

The cannabidiol (CBD) segment is expected to hold largest share in this market segment

Cannabidiol (CBD) is a chemical in the Cannabis sativa plant, also known as cannabis or hemp. One specific form of CBD is approved as a drug in the U.S. for seizure. CBD is majorly used for medical purposes due to its non-psychotic effect and low levels of toxicity.

The pharmaceutical industry segment is expected to hold largest share in this market segment

Currently, the pharmaceutical industry represents the biggest end-user. For instance, in March 2021, STADA Arzneimittel AG, one of Germany’s largest pharmaceutical firms, entered the medical cannabis space with an agreement with Canadian firm MediPharm Labs to launch two flower products and six more products to follow. The existing players have increased their investments to develop a novel and advanced product portfolio.

Source: DataM Intelligence Analysis (2022)

Medicinal Cannabis Compounding Market Geographical Analysis

North America region holds the largest market share of global medicinal cannabis compounding market

North America held the majority of the revenue share of the global market. The increasing targeted population, prevalence of chronic disorders, such as cancer and seizures. In 2018, medical marijuana was legalized in 30 states of the U.S., including Guam, Puerto Rico, and Columbia. According to recent statistics, about 57.0% of adults in the U.S. favor the use of marijuana for medical purposes like the treatment of pain, inflammation, and cancer.

Following the legalization of cannabis in Canada, the North American cannabis market is set to become the major producer of cannabis. In October 2018, Canada legalized the use of marijuana for recreational purposes nationwide.

In December 2018, the US government approved the farm bill, making cannabis containing less than 0.3% THC legal. Similarly, some of its derivative compounds have been approved by the Food and Drug Administration for medicinal use. Marinol, Syndros, Cesamet, and Epidolex are cannabinoid drugs that received approval from the FDA. Furthermore, in the United States, ten states have legalized cannabis for recreational use, while 33 states and the District of Columbia have legalized cannabis for medical purposes. Among these states, California, Washington, and Colorado are the leading cannabis sellers. The production levels of cannabis in North America have increased rapidly over the past few years due to the major players' production capacities.

Source: DataM Intelligence Analysis (2022)

Medicinal Cannabis Compounding Market Competitive Landscape

The global medicinal cannabis compounding market is highly competitive with presence of global companies.  Some of the key players which are contributing to the growth of the market include Aphria Inc, Aurora Cannabis, Cannabis Science Inc, Canopy Growth Corporation, Medical Marijuana Inc, VIVO Cannabis Inc, TikunOlam Ltd, Terra Tech Corp, Tilray and Cronos Group and Harvest Health & Recreation. The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of the market globally. For instance, Tilray entered into an agreement with Sandoz AG for global pharmaceutical sales and distribution partnership. By partnering with Sandoz AG, the former will be able to scale the distribution of its products further and faster.

Medicinal Cannabis Compounding Market Key Companies to Watch

Aphria Inc

Company Overview: Aphria Inc., headquartered in Leamington, Ontario, is an international producer and distributor of medicinal and recreational cannabis. The company operates through retail and wholesale channels in Canada and internationally. Aphria is the main distributor of medical cannabis to Germany and has operations in over ten additional countries outside Canada. Aphria offers multiple products under a portfolio of recreational cannabis brands, including Good Supply, B! NGO, Solei, RIFF, and Broken Coast.

Key Developments: In April 2019, Aphira launched its first CBD-based nutraceutical, the first product in its CBD-based cosmetics line for the German market. The venturing of companies to new segments with innovative cannabis products is anticipated to enhance the shares of the respective companies.

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