The global synthetic cannabinoids market was valued at US$ 1.5 Bn in 2020 and is expected to hit US$ 11.4 billion by 2030 with a CAGR of 21.1% from 2021 to 2030.
Synthetic cannabinoids are substances designed to mimic the effects of 9-tetrahydrocannabinol (THC), the primary psychoactive ingredient in cannabis. Over 84 different synthetic cannabinoids have been identified globally. Health benefits of synthetic cannabinoids, increase in incidence of joint and muscle pain, and rise in focus of companies on capitalizing CBD products are the major factors anticipated to drive the global synthetic cannabinoids market during the forecast period. North America held major share of the global synthetic cannabinoids market in 2019 as the rise in prevalence of chronic diseases, such as cancer, Alzheimer's and multiple sclerosis have led to the increase in demand for synthetic cannabinoids in surgeries and chemotherapies to mitigate the side effects of chemotherapy or radiation therapy. Furthermore, rise in adoption of new and advanced design technology for synthetic cannabinoids is expected to contribute to the U.S. prominent share of the market in North America from 2020 to 2030.
Rising focus on research and development, encouraging outcome of several research projects, growing consumer demand for non-regulated psychoactive substances, and potential health benefits associated with synthetic cannabinoids are some of the factors projected to propel the global synthetic cannabinoids market during the assessment period. Market players should focus on streamlining the supply chain and focus on the packaging of their products to gain a competitive edge.
Increase in Demand for Non-regulated Psychoactive Substances to Drive Market
Rising consumer interest and demand for non-regulated psychoactive substance over the past few years is expected to propel the global synthetic cannabinoids market during the assessment period. The demand for synthetic cannabinoids to assess the potential impact to treat a range of diseases and symptoms, including neurodegenerative diseases, pain disorders, drug dependence, and cancer is another major factor likely to fuel the growth of the global synthetic cannabinoids market. China is one of the key exporters of synthetic cannabinoids products and the trend is projected to continue over the upcoming years. The surge in the number of ‘legal high’ retailers across North America and Europe is also expected to positively impact the sales of synthetic cannabinoid products in the upcoming years.
Research and Development Activities to Pave Way for New Growth Opportunities
Synthetic cannabinoid was primarily conceptualized as a critical pharmacological tool to evaluate the endocannabinoid system. Gradually, synthetic cannabinoids gained immense popularity across the pharmacotherapies space, particularly in developed regions of the world, including North America and Europe. The demand for synthetic cannabinoids as an atypical drug for pain management, neurological disorder management, etc. has witnessed a considerable spike over the past few years and the trend is likely to continue in the upcoming decade. Although the demand for synthetic cannabinoids is on the rise, negative effects of synthetic cannabinoids, including mood disorders and impairment in executive functions could potentially hinder the growth of the global synthetic cannabinoids market during the forecast period.
The regulatory landscape pertaining to the procurement and consumption of synthetic cannabinoids in various regions is another major factor anticipated to influence the growth trajectory of the global synthetic cannabinoids market during the assessment period. Research and development activities are likely to play a key role in promoting and creating awareness regarding the potential health benefits of synthetic cannabinoids– a factor that could propel the market for synthetic cannabinoids in the forthcoming decade.
Regulatory Landscape to Influence Market Growth Worldwide
The expansion of the global synthetic cannabinoids market is expected to pin its hope on the regulatory framework pertaining to the consumption of synthetic cannabinoid products. The growing popularity of e-cigarettes coupled with the increasing affinity toward the usage of synthetic cannabinoids as an alternative for non-synthetic cannabis in several regions of the world is projected to provide a considerable boost to the consumption of synthetic cannabinoids. Furthermore, synthetic cannabinoids are marketed as a legal and safe alternative to marijuana in several parts of the world due to which, the sales of synthetic cannabinoids have witnessed growth particularly among the millennial population. However, the increasing uncertainty over the effects of synthetic cannabinoids consumption and increasing evidence indicating the negative impact of synthetic cannabinoids on the human brain are some of the key factors estimated to hinder the growth of the global synthetic cannabinoids market in the upcoming years.
A number of players have gradually entered the synthetic cannabinoids market in the past few years, and are attracting new consumers by focusing on their packaging and marketing strategies. Over the past few years, synthetic cannabinoids were primarily available in novelty stores, gas stations, and drug paraphernalia shops in several parts of North America. However, due to the evolving regulatory landscape, synthetic cannabinoids products are now available at retail pharmacies, online pharmacies, and hospital pharmacies.
Overview
High-pure Synthetic Cannabinoids Dominated Global Market
In terms of product type, the global synthetic cannabinoids market has been segmented into high-pure synthetic cannabinoids and ultra-pure synthetic cannabinoids. The high-pure synthetic cannabinoids segment dominated the global synthetic cannabinoids market in 2019 and the trend is projected to continue during the forecast period. High-pure synthetic cannabinoids were introduced earlier in the market and highly adopted to treat serious diseases such as epilepsy, insomnia, and multiple sclerosis.
Pain Management Held Major Market Share
Based on indication, the global synthetic cannabinoids market has been classified into pain management, nausea/vomiting, neurological disorder management, and others. The pain management segment dominated the global market in 2019 due to the rate of incidence of neurological pain has increased globally due to rise in infections, accidents, or surgeries.
Hospitals to be Most Promising Distribution Channel
In terms of distribution channel, the global synthetic cannabinoids market has been categorized into hospital pharmacies, retail pharmacies, and online pharmacies. The retail pharmacies segment accounted for major market share in 2019. The segment is expected to gain market share during the forecast period due to moderate pricing of products. Moreover, added benefits provided by the products drive sales. These factors are likely to propel the segment during the forecast period.
North America to Dominate Global Market
In terms of region, the global synthetic cannabinoids market has been segmented into North America, Europe, Latin America, and Rest of the World. North America is projected to account for leading share of the global synthetic cannabinoids market during the forecast period. Increase in incidence of neurological pain disorder, multiple sclerosis, and cancer is the major factor expected to drive the market in the region from 2019 to 2030. However, considerable production of synthetic cannabinoids in Canada is likely to augment the market in the country during the forecast period. Rise in export and import of synthetic cannabinoids due to approval of legalization on sale of CBD products in several countries in Europe is a key factor projected to propel the market in the region during the forecast period.
Growth Strategies of Key Players
Key players operating in the global synthetic cannabinoids market are Mylan N.V., Alkem Labs, Noramco, Lygos, Inc., Hyasynth Biologicals, Inc., Renew Biopharma, CannBioRx Life Sciences, and Ginkgo Bioworks. These companies engage in research & development to develop novel products in order to expand product offerings and customer base. In January 2020, Lygos, Inc. announced the acquisition of Librede, Inc., an emerging synthetic biology company focused on cannabinoid products for the consumer market. The combined proprietary technology platforms enable Lygos to accelerate the development of high-quality, sustainable, and rare cannabinoids and rapidly commercialize new innovative cannabinoid-based consumer, and nutraceutical and pharmaceutical products. Alkem Labs acquired anti-nausea drug Marinol from AbbVie for US$ 10 Mn in December 2019.
Market Segmentation
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