Synthetic Cannabinoids Market

The global Synthetic Cannabinoids Market is valued at USD 1.7 Billion in 2022 and is projected to reach a value of USD 6.7 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 21.9% between 2023 and 2030.

Premium Insights

The Synthetic Cannabinoids mark has grown significantly in recent years due to several factors, including rising R&D efforts, expanding cannabis legalization across the globe, and growing consumer demand for alternative recreational products. For instance, scientists at the University of California, San Diego, created a study to examine how anxiety and depression are affected by Synthetic Cannabinoids in animal models. The results of these studies may aid in creating new drugs to treat mental health issues. Creating novel compounds with improved properties is one of the major developments in the Synthetic Cannabinoids market. For instance, the creation of JWH-018, a synthetic cannabinoid that was first made for research uses before becoming well-known as a recreational drug. JWH-018, also known as AM-678 or 1-pentyl-3-(1-naphthyl) indole, was created for the first time by Dr. John W. Huffman at Clemson University in South Carolina in the middle of the 1990s. The substance was created as a tool for research into the brain's endocannabinoid system and how it interacts with different cannabinoid receptors.

However, JWH-018 started to be used as a recreational drug due to its structural resemblance and interaction with the same cannabinoid receptors as the psychoactive substance Tetrahydrocannabinol (THC) from cannabis. Due to its ability to mimic the effects of THC while still being legally available at the time, it was marketed as "Spice" or "K2" and sold as a substitute for cannabis. Synthetic Cannabinoids have been linked to treating various conditions, including chronic pain, nausea, and multiple sclerosis. These developments hold enormous potential for medical applications. For example, Nabilone is a synthetic cannabinoid that functions as a cannabinoid receptor agonist and is an analog of tetrahydrocannabinol (or 9-THC). Patients who experience chronic pain that other painkillers cannot adequately manage are frequently prescribed it. By interacting with cannabinoid receptors in the central nervous system and peripheral tissues, nabilone can reduce pain perception by altering pain signaling pathways. Such developments help improve patient outcomes and support the market's expansion.

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Key Takeaways

• The High-Pure Synthetic Cannabinoids category dominated the synthetic cannabinoid product type segment in 2022.
• The medical industry currently holds the largest market share in the synthetic cannabinoid market's application segment.
• North America is the largest region and is expected to be the largest in the forecast period 2023-2030 for Synthetic Cannabinoids market with the current market share of 54.92%.

Economic Insights

Production costs are crucial as the synthesizing process necessitates specialized chemicals and knowledge. Any changes in the cost of generating Synthetic Cannabinoids directly impact the market's supply and pricing because they directly affect the price of these raw materials. Changes in the regulatory environment can also have a significant impact on the market. Governments might impose more stringent rules on the manufacture, sale, or consumption of Synthetic Cannabinoids, increasing compliance costs and possibly lowering overall market demand. Last, consumer spending power and disposable income levels can impact the demand for Synthetic Cannabinoids. In times of economic uncertainty or recession, people might choose to forgo recreational drugs in favor of necessities, leading to a decline in the market.

Top Market Trends

1. Increasing Use in Healthcare: Synthetic Cannabinoids are being increasingly used in healthcare due to their ability to reduce chronic pain, inflammation, and overall quality of life. As more research is conducted on the benefits of cannabinoids in healthcare, their use is expected to rise further.
2. Growing Number of Product Launches: Pharmaceutical companies are launching new products containing Synthetic Cannabinoids, used to treat various disorders. Innovative drug delivery systems, including transdermal patches and inhalers, are being used to improve drug efficacy and user convenience.
3. Legalization of Medical Marijuana: Legalizing medical marijuana in several countries is driving the growth of the Synthetic Cannabinoids market. Medical marijuana is increasingly being prescribed as a viable treatment plan for various medical conditions, leading to increased demand for Synthetic Cannabinoids.

Market Segmentation

The global Synthetic Cannabinoids market can be segmented based on the following: Product Type, Application, Distribution Channel, End-User, and Region. By Product Type, this market is categorized into High-Pure Synthetic Cannabinoids, Ultra-Pure Synthetic Cannabinoids, and other product types. Furthermore, based on the Application segment, the market can be classified further into Medical, Recreational, and Other Applications. In addition, based on the Distribution Channels, the market is segregated into Online Stores, Physical Stores, Drugstores, Pharmacies, and Other Distribution Channels. Moreover, based on the End-User, the market can be divided into Research & Development Institutions, Pharmaceutical & Biotechnology Companies, Forensic Laboratories, and Other End-Users. Lastly, based on Region, the market is further separated into North America, Europe, Latin America, Asia Pacific, and Middle East & Africa.

Based on Product Type

High-Purity Synthetic Cannabinoids are Renowned for Producing Potent Psychoactive Effects

The High-Pure Synthetic Cannabinoids category dominates the synthetic cannabinoid product type segment. Due to their effectiveness and affordability, they are widely accessible and well-liked in the market, which accounts for their dominance. High-purity Synthetic Cannabinoids are renowned for producing potent psychoactive effects comparable to those of cannabis' natural cannabinoids. They are frequently used by people looking for a fun or therapeutic experience. Popular brands like Spice and K2, for instance, fit into this category and have a sizable consumer base thanks to their accessibility and range of flavors. In contrast, Ultra-Pure Synthetic Cannabinoids are less common on the market because they are more potent and may be riskier for your health.

Based on Application

Medical-Grade Synthetic Cannabinoids have Demonstrated Promise in the Treatment of Multiple Sclerosis Symptoms, Nausea, and Chronic Pain

The medical industry currently holds an excessive percentage of market share in the synthetic cannabinoid market's application segment. This hegemony results from medical marijuana becoming more and more accepted and legalized in various places. Because they are controlled and standardized, Synthetic Cannabinoids are desirable for medical applications. Medical-grade Synthetic Cannabinoids have demonstrated promise in treating multiple sclerosis symptoms, nausea, and chronic pain. Dronabinol (Marinol) and nabilone (Cesamet) are two examples of frequently used Synthetic Cannabinoids in the medical field. However, the balance between medical and recreational dominance may change in the upcoming years due to the growing momentum of cannabis legalization for recreational use.

Based on Distribution Channel

Compared to Physical Stores or Pharmacies, Online Retailers Frequently have a Wider Selection of Products

Online retailers rule the market for Synthetic Cannabinoids' distribution channel segment for various reasons. Customers can purchase Synthetic Cannabinoids from the comfort of their homes through online retailers, which makes their services convenient and accessible to a wider consumer base. Additionally, online retailers frequently have a wider selection of products than physical stores or pharmacies. Online retail giants in this market include platforms like Amazon, eBay, and niche portals like BuyLegalMeds. These platforms draw a sizable number of customers looking for variety and dependability because they offer a wide range of Synthetic Cannabinoids and in-depth product descriptions, customer reviews, and secure payment options.

Based on End-User

Research and Development Organizations are a Significant End-User Group that Dominates the Market

Research and development organizations are a significant end-user group that dominates the synthetic cannabinoid market. These academic institutions are actively researching the various chemical make-ups and outcomes of Synthetic Cannabinoids, adding to our understanding of their potential uses. Companies in the pharmaceutical and biotechnology industries also play a significant role by utilizing this research to create cutting-edge therapeutic procedures. For instance, global pharmaceutical leaders Pfizer and Merck invest heavily in the study of Synthetic Cannabinoids to develop new medications for the treatment of pain or neurological disorders. Another significant group of end users of Synthetic Cannabinoids are forensic laboratories, which use their knowledge to examine and distinguish illegal substances. Their assistance becomes indispensable in maintaining public safety and upholding the law.

Based on Region

North America to Maintain Dominant Position

Due to many factors, North America dominates the Synthetic Cannabinoids market. First, there is a big market for recreational drugs in North America, and Synthetic Cannabinoids are becoming increasingly well-liked as marijuana substitutes. These substances have similar effects but are frequently more potent and have different chemical make-ups. Synthetic Cannabinoids thrive in black markets due to the region's lax laws and tolerant drug enforcement policies. Furthermore, the production and distribution of Synthetic Cannabinoids have undergone significant advancements in North America. Numerous research and development initiatives have centered on developing new and more potent strains to meet consumers' changing preferences. Technology developments have also made producing Synthetic Cannabinoids easier, increasing their availability and accessibility.

The identification of novel chemical compounds that mimic the effects of cannabis and the development of various forms for consumption, such as infused liquids or vape cartridges, are examples of developments in the North American synthetic cannabinoid market. Additionally, the development of online marketplaces and the dark web has made it easier for people to access Synthetic Cannabinoids by facilitating the trade of these drugs.

Overall, North America is now the largest region in the Synthetic Cannabinoids market due to high demand, lax regulations, and improvements in production and distribution methods.

Competitive Landscape

Major players in the Synthetic Cannabinoids market focus on product launches and partnerships to expand their market presence and remain competitive. In addition, companies are investing heavily in research and development to develop new and innovative products that offer better efficacy and safety. In May 2022, AbbVie Inc. and Sosei Group Corporation announced a collaboration agreement to develop and commercialize synthetic, non-opioid treatments for various pain conditions. Furthermore, GW Pharmaceuticals announced the launch of their new synthetic cannabinoid-based drug, Epidiolex, for treating seizures associated with certain forms of epilepsy.

The key players in the global Synthetic Cannabinoids market include - Mylan N.V. (U.S.), Noramco. (U.S.), HYASYNTH Biologicals Inc. (Canada), Renew Biopharma Inc. (U.S.), Ginkgo Bioworks (U.S.), CV Sciences Inc. (U.S.), Anandia Labs (Canada), The Cronos Group (Canada), Biotii Technologies Corp. (Canada), Bristol-Myers Squibb Company (U.S.), GW Pharmaceuticals PLC (UK), AbbVie Inc. (U.S.), Isodiol International Inc. (Canada), CURE Pharmaceutical (U.S.), Zynerba Pharmaceuticals Inc. (U.S.), Aphios Corp. (U.S.), Botanix Pharmaceuticals (U.S.), BioVectra (Canada), INMED Pharmaceuticals Inc. (Canada) among others.

Recent Market Developments

• May 29, 2023:Avicanna Inc., a biopharmaceutical company focused on the development, manufacturing, and commercialization of plant-derived cannabinoid-based products, is pleased to announce the execution of the definitive Asset Purchase Agreement between Shoppers Drug Mart and Avicenna for Avicanna’s acquisition of assets of the Medical Cannabis by Shoppers business.
• June 28, 2022: Jazz Pharmaceuticals PLC today announced top-line results from the Phase 3 RELEASE MSS1 trial evaluating nabiximols oromucosal spray (JZP378, or Sativex, ex-U.S.) on clinical measures of spasticity in individuals with multiple sclerosis (MS). The RELEASE MSS1 trial did not meet the primary endpoint of change in Lower Limb Muscle Tone-6 (LLMT-6) between baseline and Day 21, as measured by the Modified Ashworth Scale (MAS). Nabiximols oromucosal spray is a complex botanical mixture formulated from extracts of the cannabis sativa plant and contains the cannabinoids delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD), as well as other cannabinoid and non-cannabinoid components.
• May 2022: AbbVie Inc. and Sosei Group Corporation announced a collaboration agreement to develop and then commercialize synthetic, non-opioid treatments for various pain conditions.
• April 2022: GW Pharmaceuticals announced the launch of Epidiolex, a new synthetic cannabinoid-based drug for treating seizures associated with certain forms of epilepsy.

Segmentation of the Global Synthetic Cannabinoids Market