1 Global Synthetic Cannabinoid Market Insight Analysis
The global synthetic cannabinoid market size is expected to be USD 69.63 million in 2024, with a CAGR of 31.24% from 2024 to 2033.
Synthetic cannabinoids are chemical compounds that mimic the effects of natural cannabinoids found in the cannabis plant. They are designed to interact with the body’s endocannabinoid system, which plays a crucial role in regulating various physiological processes such as pain, mood, and appetite. These compounds are primarily used in pharmaceutical research to develop treatments for conditions like epilepsy, chronic pain, and neurodegenerative diseases. Additionally, synthetic cannabinoids are increasingly being incorporated into consumer goods, including food and cosmetics, due to their potential health benefits.
Figure Global Synthetic Cannabinoid Market Size (M USD) and CAGR (2024-2033)
2 Synthetic Cannabinoid Market Growth Drivers and Restraints
Driving factors: From the perspective of market demand, the growth in demand for drug therapy is one of the key factors driving the development of the synthetic cannabinoid market. As an important pharmacological tool for evaluating the endocannabinoid system, synthetic cannabinoids have shown potential in treating a variety of diseases and symptoms, such as neurodegenerative diseases, pain disorders, drug dependence and cancer, which makes them popular in the field of drug therapy around the world, especially in developed regions such as North America and Europe, and demand continues to rise.
At the same time, people’s increasing awareness of the advantages of synthetic cannabinoids in treating pain, skin diseases, vomiting and depression has also stimulated the growth of market demand. In addition, the legalization of medical marijuana in some parts of the world, the increase in the number of related testing laboratories, and the government’s support and approval of synthetic cannabinoid-based products have created favorable conditions for market development.
From a regional development perspective, the North American and European markets are growing rapidly. North America has a rich supply of products, and many major companies continue to promote their products to healthcare professionals, resulting in strong market demand; in Europe, the market size continues to expand due to the increased use of synthetic cannabinoid drugs in cancer patients and the improvement of people’s awareness of related therapies.
Restrictive factors: The use of synthetic cannabinoids has many health risks, which has formed a major obstacle to market development. As a new psychoactive substance (NPS), the product composition is complex and it is difficult to determine the specific effects of specific substances. Scientific reports and clinical observations show that the use of synthetic cannabinoids may cause cardiovascular problems, psychological disorders, and some metabolites may even have carcinogenic risks. The abuse of synthetic cannabinoids has become a global problem.
All 50 states in the United States have reported adverse health effects caused by the use of synthetic cannabinoids, which will undoubtedly cause consumers to worry about their safety, thereby suppressing market demand. In addition, there is limited knowledge about synthetic cannabinoids, and their global regulation is complex and inconsistent. Different countries and regions have different legal provisions on synthetic cannabinoids. Some regions strictly restrict or even completely prohibit them, which increases the compliance costs and market operation risks of enterprises and limits the further expansion of the market.
Moreover, the market competition is fierce and new entrants face high barriers. Existing companies in the industry have advantages in technology, brand and market share. New companies entering the market need to invest a lot of money in research and development, production and marketing, and also need to cope with changes in regulations and policies. This makes it difficult for new entrants to gain a foothold in the market, which to a certain extent affects the vitality and development speed of the market.
3 Technological Innovations in the Synthetic Cannabinoid Market
Technological innovation: In the field of synthetic cannabinoid production technology, a variety of innovative methods continue to emerge. Chemical synthesis is a common production method that can be used to make common and rare cannabinoids, but this method is more efficient in small-scale production, and large-scale production needs to consider cost-effectiveness. Biosynthesis uses bioengineering technology to transform microorganisms into “microbial cell factories” to produce cannabinoids, such as using microorganisms such as Escherichia coli and baker’s yeast.
This method has the advantages of high cost-effectiveness and environmental protection, and microorganisms can use sugar to produce cannabinoids, and can be fermented in existing large-scale infrastructure. For example, Genomatica uses bacteria and yeast to produce a variety of products, including cannabinoids. In addition, there are methods that combine fermentation and chemical synthesis. For example, BayMedica uses bioengineering to transform baker’s yeast to synthesize cannabinoids, and then performs chemical synthesis or a combination of the two according to demand to achieve more efficient and low-cost production.
The company is currently a global leader in large-scale production of CBC. InMed Pharmaceuticals focuses on the production of rare cannabinoids using biotransformation technology. The IntegraSyn modular process it developed first ferments to produce specific enzymes, and then uses enzymes for biotransformation. This process is faster, has higher yields, and is more flexible in production than yeast-based biosynthesis.
Corporate mergers and acquisitions: Mergers and acquisitions between companies are frequent, aiming to achieve resource integration, technology sharing, and market expansion. Cronos Group has reached a cooperation with Ginkgo Bioworks, and Cronos Group has acquired a fermentation and manufacturing facility to achieve industrial production of cannabinoids. InMed announced the acquisition of BayMedica in September 2021. The acquisition integrates the manufacturing capabilities of both parties.
BayMedica’s expertise in yeast biosynthesis and chemical synthesis is combined with InMed’s IntegraSyn platform and bacterial biosynthesis technology, enabling the merged company to produce rare cannabinoids more flexibly. These merger and acquisition cases help companies expand their scale, enhance market competitiveness, achieve diversified development, and promote the improvement of industry concentration.
4 Global Synthetic Cannabinoid Market Size by Type
High-pure synthetic cannabinoids are characterized by their high purity and consistency, making them ideal for pharmaceutical applications. These compounds are widely used in the development of medications for treating various conditions, including epilepsy, chronic pain, and neurodegenerative diseases. In 2024, the market value for high-pure synthetic cannabinoids is projected to reach $55.48 million. This segment is expected to maintain its dominance in the market, driven by the increasing demand for high-quality, consistent, and reliable synthetic cannabinoids in the pharmaceutical sector.
The growth of the high-pure synthetic cannabinoid market is also supported by the ongoing research and development activities aimed at discovering new therapeutic applications for these compounds. The market share of high-pure synthetic cannabinoids in 2024 is estimated to be 79.71% of the total market revenue. This segment is expected to continue growing at a robust rate, with a Compound Annual Growth Rate (CAGR) of 35.05% from 2024 to 2029.
Ultra-pure synthetic cannabinoids represent a smaller but rapidly growing segment of the market. These compounds are characterized by their extremely high purity levels, making them suitable for applications where even higher standards of purity are required. In 2024, the market value for ultra-pure synthetic cannabinoids is projected to reach $14.16 million. This segment is expected to grow significantly over the next few years, driven by the increasing demand for ultra-pure compounds in both pharmaceutical and consumer goods applications.
Ultra-pure synthetic cannabinoids are particularly attractive for use in consumer goods, such as food and cosmetics, where high purity is essential for safety and efficacy. The market share of ultra-pure synthetic cannabinoids in 2024 is estimated to be 20.29% of the total market revenue. This segment is expected to grow at a CAGR of 51.12% from 2024 to 2029, indicating strong potential for future expansion.
Table Global Synthetic Cannabinoid Market Size by Type in 2024
Type | Market Size (M USD) 2024 |
|---|---|
High-Pure Synthetic Cannabinoid | 55.48 |
Ultra-Pure Synthetic Cannabinoid | 14.16 |
5 Global Synthetic Cannabinoid Market Size by Application
Research entities are a significant segment of the synthetic cannabinoid market, utilizing these compounds for various scientific and medical studies. In 2024, the market value for synthetic cannabinoids used by research entities is projected to reach $9.63 million. This segment is driven by the increasing demand for high-purity synthetic cannabinoids to study their effects on the endocannabinoid system and develop new therapeutic applications. The market share of research entities in 2024 is estimated to be 13.83% of the total market revenue. This segment is expected to grow at a Compound Annual Growth Rate (CAGR) of 9.78% from 2024 to 2029, reflecting the ongoing interest in cannabinoid research.
Pharma companies represent a major application area for synthetic cannabinoids, using these compounds to develop medications for various conditions, including pain management, epilepsy, and neurodegenerative diseases. In 2024, the market value for synthetic cannabinoids used by pharma companies is projected to reach $35.39 million. This segment is expected to maintain its dominance, driven by the increasing approval of synthetic cannabinoid-based drugs and the growing demand for effective pain management and neurological disorder treatments. The market share of pharma companies in 2024 is estimated to be 50.83% of the total market revenue. This segment is expected to grow at a CAGR of 45.52% from 2024 to 2029, indicating strong potential for future expansion.
Consumer goods, including food, cosmetics, and other products, are an emerging application area for synthetic cannabinoids. In 2024, the market value for synthetic cannabinoids used in consumer goods is projected to reach $24.61 million. This segment is driven by the growing consumer interest in the health benefits of cannabinoids and the increasing incorporation of these compounds into various consumer products. The market share of consumer goods in 2024 is estimated to be 35.34% of the total market revenue. This segment is expected to grow at a CAGR of 41.83% from 2024 to 2029, reflecting the strong demand for cannabinoid-infused products.
Table Global Synthetic Cannabinoid Market Size by Application in 2024
Application | Market Size (M USD) 2024 |
|---|---|
Research Entities | 9.63 |
Pharma Companies | 35.39 |
Consumer Goods | 24.61 |
6 Global Synthetic Cannabinoid Market Size by Region
North America is a dominant region in the synthetic cannabinoid market, driven by the presence of major players, favorable regulatory environments, and high demand for synthetic cannabinoids in pharmaceutical and consumer goods applications. In 2024, the market value for synthetic cannabinoids in North America is projected to reach $41.57 million. This region is expected to maintain its dominance, driven by ongoing research and development activities and the increasing legalization of medical cannabis. The market share of North America in 2024 is estimated to be 59.71% of the total market revenue. This region is expected to grow at a CAGR of 31.24% from 2024 to 2029, reflecting strong potential for future expansion.
Europe is another significant region in the synthetic cannabinoid market, driven by the increasing adoption of synthetic cannabinoids in pharmaceutical applications and the growing interest in cannabinoid research. In 2024, the market value for synthetic cannabinoids in Europe is projected to reach $24.26 million. This region is expected to experience robust growth, driven by favorable regulatory environments and the increasing demand for high-purity synthetic cannabinoids. The market share of Europe in 2024 is estimated to be 34.85% of the total market revenue. This region is expected to grow at a CAGR of 48.26% from 2024 to 2029, indicating strong potential for future expansion.
Other regions, including Asia-Pacific, South America, and the Middle East and Africa, represent emerging markets for synthetic cannabinoids. In 2024, the market value for synthetic cannabinoids in these regions is projected to reach $3.80 million. These regions are expected to experience significant growth, driven by increasing awareness of the therapeutic benefits of synthetic cannabinoids and the growing demand for these compounds in various applications. The market share of other regions in 2024 is estimated to be 5.44% of the total market revenue. These regions are expected to grow at a CAGR of 57.95% from 2024 to 2029, reflecting strong potential for future expansion.
Figure Global Synthetic Cannabinoid Market Size (M USD) by Region in 2024
7 Global Synthetic Cannabinoid Market Analysis by Major Players
Purisys
Company Profile: Purisys is a leading manufacturer of synthetic cannabinoids, established in 1979 and headquartered in Athens, Georgia, USA. The company specializes in the development, manufacture, and support of pharmaceutical APIs and other chemical synthesis projects. Purisys’ flagship innovation center and manufacturing facility in Athens offers decades of experience in complex high-barrier custom synthetic chemistry and the manufacture of pharmaceutical APIs.
Business Overview: Purisys offers a broad lineup of manufacturing and personnel assets for the development and support of pharmaceutical APIs and other chemical synthesis projects. The company’s flagship facility in Athens, GA, provides comprehensive controlled substance expertise and is known for its high standards of purity and consistency in synthetic cannabinoids. Purisys’ products are widely used in pharmaceutical applications, research entities, and consumer goods.
Product Offered: Purisys offers a comprehensive portfolio of synthetic cannabinoids, including cannabidiol (CBD), dronabinol (THC), nabilone, minor/rare cannabinoids, and cannabinoid reference standards. These products are known for their high purity, predictable manufacturing routes, secure supply chains, and compliance with international standards.
2023 Revenue and Gross Margin: In 2023, Purisys achieved a revenue of $20.26 million with a gross margin of 65.71%. This strong performance is attributed to the company’s extensive product portfolio and its ability to meet the high demand for synthetic cannabinoids in the pharmaceutical and research sectors.
Creo
Company Profile: Creo is an innovative ingredient company that produces rare and novel cannabinoids using fermentation technology. Established in 2016 and headquartered in California, USA, Creo’s mission is to create cannabinoid products that are both effective and environmentally friendly. The company’s technology partner and major shareholder is Genomatica, a leading biotech firm.
Business Overview: Creo specializes in producing high-purity cannabinoids through a fermentation process, which ensures consistent quality and scalability. The company’s products are used in various applications, including pharmaceuticals, consumer goods, and research entities. Creo’s commitment to sustainability and innovation has positioned it as a key player in the synthetic cannabinoid market.
Product Offered: Creo offers a range of synthetic cannabinoids, including cannabigerol (CBG), which is known for its potential health benefits such as antibacterial properties, dental hygiene, skincare, and pain management. The company’s fermentation process ensures that these cannabinoids are produced in commercial quantities with high purity and free from contaminants.
2023 Revenue and Gross Margin: In 2023, Creo achieved a revenue of $6.54 million with a gross margin of 53.60%. This growth is driven by the increasing demand for high-purity cannabinoids in the consumer goods and pharmaceutical sectors, as well as the company’s innovative production methods.
LAVVAN
Company Profile: LAVVAN is a leading producer of natural and synthetic cannabinoids using advanced cellular agriculture platforms. Established in 2019 and headquartered in the USA, LAVVAN is known for its commitment to sustainability and high-quality products. The company’s advanced technology allows it to produce cannabinoids with unparalleled purity and consistency.
Business Overview: LAVVAN specializes in producing a range of natural and synthetic cannabinoids for various industries, including health, beauty, food and beverage, and pharmaceuticals. The company’s advanced cellular agriculture platform ensures that its products are both sustainable and scalable, meeting the growing demand for high-quality cannabinoids.
Product Offered: LAVVAN offers a portfolio of cannabinoids, including cannabidiol (CBD) and cannabigerol (CBG), which are used in various applications such as skincare, dental hygiene, and pain management. The company’s products are known for their high purity, consistency, and sustainability, making them ideal for both pharmaceutical and consumer goods applications.
2023 Revenue and Gross Margin: In 2023, LAVVAN achieved a revenue of $5.19 million with a gross margin of 61.56%. This strong performance is attributed to the company’s advanced production methods and its ability to meet the increasing demand for high-purity cannabinoids in the market.