Cannabinoid Based Drug Discovery And Development

The cannabinoid based drug discovery and development market was valued at $1.3 billion in 2024 and is estimated to reach $1.8 billion by 2034, exhibiting a CAGR of 3.3% from 2025 to 2034. The major factors driving the growth of the cannabinoid based drug discovery and development market are increasing research on therapeutic applications, regulatory approvals and legalization, rising prevalence of chronic diseases. The increasing research on therapeutic applications of cannabinoids is a key driver for the growth of the cannabinoid based drug discovery and development market. The increasing research on therapeutic applications is a major factor driving the growth of the cannabinoid based drug discovery and development market. Over the past few years, there has been a significant rise in scientific studies exploring the potential of cannabinoids in treating a wide range of medical conditions.

Researchers are investigating their effects on neurological disorders, chronic pain, cancer-related symptoms, and mental health issues, among others. For instance, in 2022 Icahn School of Medicine at Mount Sinai started a randomized, double blind, study of dronabinol as a palliative agent in the treatment of pain, inflammation, and other complications of sickle cell disease (SCD). The objective of this study is to assess dronabinol's effect on markers of inflammation in patients with SCD compared to placebo and to determine the safety and tolerability of dronabinol use in adults with SCD compared to placebo. The growing evidence supporting the medicinal benefits of cannabinoids has led to more investment in clinical trials and drug development. 

As regulatory environments become more supportive, especially in regions where cannabis laws are evolving, there is an increase in both public and private sector involvement in this cannabinoid research. This surge in research not only accelerates the discovery of new therapeutic uses for cannabinoids but also improves their acceptance as legitimate medical treatments. Apurano Pharmaceuticals GmbH has drug candidate Adezunap which is currently under phase 3 clinical trials for treatment of chronic back pain, painful diabetic peripheral neuropathy, central neuropathic pain and chronic post traumatic/ post-surgical neuropathic pain. As healthcare providers and researchers continue to explore the pharmacological benefits of cannabinoids, the market is expected to witness significant growth.

The increasing prevalence of chronic diseases, including neurological disorders, cancer, and chronic pain conditions, is a major factor driving the growth of the cannabinoid based drug discovery and development market. As traditional treatment options often fail to provide adequate relief or come with significant side effects, there is a growing demand for alternative therapies, particularly those derived from cannabinoids. 

Cannabinoids such as cannabidiol (CBD) and tetrahydrocannabinol (THC) have demonstrated therapeutic potential in managing pain, inflammation, seizures, and chemotherapy-induced nausea, making them attractive candidates for drug development. According to article by World Health Organization, it is estimated that over 1.8 million (as of 2023) people have multiple sclerosis worldwide and around 50 million (as of 2024) people worldwide have epilepsy. The rising global burden of conditions such as multiple sclerosis, epilepsy, and arthritis has spurred research efforts aimed at formulating cannabinoid based pharmaceuticals with improved efficacy and safety profiles. 

Partnerships and funding for research play a crucial role in driving the growth of the cannabinoid based drug discovery and development market. Pharmaceutical companies, biotech firms, and academic institutions are increasingly collaborating to advance research on cannabinoids' therapeutic potential for conditions such as chronic pain, neurological disorders, and cancer. These partnerships facilitate resource sharing, access to specialized expertise, and streamlined drug development processes. In February 2023, Zelira Therapeutics received $8.6 million in funding from Cantheon Capital LLC for the study of its cannabinoid drug for use in patients with autism spectrum disorder. With the funds from Cantheon Capital LLC, Zelira will conduct FDA phases 2 and 3 clinical trials of HOPE 1 via a special purpose vehicle (SPV). This financial support allows for the exploration of innovative drug formulations and delivery systems, expanding the therapeutic indications for cannabinoid based drugs. Consequently, the combination of strategic collaborations and funding opportunities significantly fosters the growth and advancement of cannabinoid based drug discovery and development, positioning it as a promising segment within the broader pharmaceutical market.

The cannabinoid based drug discovery and development market is segmented on the basis of drug development stage, receptor target, end user, and region. On the basis of drug development stage, the market is divided into preclinical studies, and clinical trials. Depending on receptor target, the market is divided into CB1 (Agonist, Antagonist, and Inverse Agonist), CB2 (Agonist, Antagonist, and Inverse Agonist), FAAH Inhibitor, MAGL Inhibitor, FAAH-MAGL Dual Inhibitor, and TRPV1 (Agonist and Antagonist). On the basis of end user, the market is segmented into pharmaceutical companies, research institutes, and contract research organizations. Region wise, the market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and Rest of Europe), Asia-Pacific (India, South Korea, Australia, and Rest of Asia-Pacific), and LAMEA (Brazil, Saudi Arabia, South Africa, and Rest of LAMEA).

Key Benefits for Stakeholders

This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the cannabinoid based drug discovery and development market analysis from 2024 to 2034 to identify the prevailing cannabinoid based drug discovery and development market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the cannabinoid based drug discovery and development market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global cannabinoid based drug discovery and development market trends, key players, market segments, application areas, and market growth strategies.

Key Market Segments

By End User

Pharmaceutical Companies
Research Institutes
Contract Research Organizations

By Receptor Target

CB1 Receptor
CB2 Receptor

By Region

North America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Rest of Europe
Asia-Pacific
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa,
Saudi Arabia
Rest of LAMEA
Key Market Players
Jazz Pharmaceuticals, Inc (GW Pharmaceuticals)
Corbus Pharmaceuticals Holdings
Harmony Biosciences (Zynerba Pharmaceuticals)
Pfizer (Arena Pharmaceuticals)
InMed Pharmaceuticals
Therapix Biosciences Ltd.
Skye Bioscience, Inc (Emerald Health Pharmaceutical)
CNBX
Anebulo Pharmaceuticals
Botanix PharmaceuticalsThe research methodology of the global market involves extensive primary and secondary research. Primary research includes about over 12 hours of interviews and discussion with a wide range of stakeholders, including upstream and downstream participants. The primary research typically is the bulk of our research efforts; however, coherently supported by extensive secondary research. Researchers have reviewed over 6,765 product literatures, industry releases, annual reports, and other such documents of key industry participants to obtain better market understanding and gain competitive intelligence. In addition, authentic industry journals, trade associations' releases,and government websites have also been reviewed for generating high-value industry insights.