The cannabis use disorder market is estimated to be valued at USD 1.64 Bn in 2024 and is expected to reach USD 3.06 Bn by 2031, growing at a compound annual growth rate (CAGR) of 9.33% from 2024 to 2031. With increasing legalization of cannabis for medical and recreational purposes, more people are gaining access and risk developing cannabis use disorder. This growing acceptance and access to cannabis is expected to significantly drive the growth of the cannabis use disorder market over the forecast period.

Market Driver - Increasing Awareness and Diagnosis of Cannabis Addiction

With growing social acceptance of cannabis usage, what has also increased remarkably is public awareness about potential harms of substance abuse and addiction. Only in recent years, extensive scientific studies and their reporting in mainstream media has educated general population about diagnosable cannabis use disorder and how it can negatively impact one's personal and professional life if not addressed properly.

Now people are more informed that using cannabis every day or almost daily to cope with stress, sleeplessness or for entertainment carries risk of psychological as well as physical reliance on the substance. Concepts like cannabis withdrawal syndrome and cannabis addiction are no more foreign terms.

Additionally, mental health professionals are more trained today to identify underlying cannabis use issues during routine assessment of patients reporting mood, anxiety or other psychiatric disorders. All this growing recognition has encouraged many individuals with problematic cannabis consumption patterns to openly seek clinical help rather than considering it a casual habit.

Some are even referred to treatment programs by their colleges, family or friends who notice adverse impacts.

This lifting of the veil of ignorance around risks of cannabis is driving up identification of people affected by cannabis use disorder.

Market Driver - Ongoing Advancements in Cannabinoid Receptor-targeting Therapies

Neuroscientists have deepened their understanding of endocannabinoid system in humans and how activation of cannabinoid receptors CB1 and CB2 influences myriad physiological and cognitive functions. Despite complex interactions, it is clear now that sustained cannabis exposure induces neuroplastic changes in these endogenous cannabinoid pathways leading to tolerance and withdrawal symptoms.

Meanwhile natural and synthetic cannabinoids are also being experimented as replacement therapy during treatment induction phase. The substitution approach aims to gradually wean patient off heavy cannabis use by providing regulated alternative until their endocannabinoid tone stabilizes. Aside, medication assisted options such as nabiximols, a balanced mixture of THC and CBD is showing effectiveness as an adjuvant for therapy in cases of relapse prevention and as an add-on to behavioural counseling modules.

Such innovative approaches bring hope that just like for other substance dependence disorders, cannabis addiction management will transition from wholly psychosocial to combined pharmacological solutions supported by continuously expanding repository of clinical trials and research data.

All these encouraging advances at the frontier of cannabinoid pharmacology lift spirits of individuals seeking long-lasting recovery and thereby fuel the momentum in cannabis use disorder therapeutics sector.

Market Challenge - Regulatory Hurdles in Approving Cannabis-based Treatments

There are significant regulatory hurdles facing the development and approval of cannabis-based treatments for cannabis use disorder. Cannabis remains a Schedule I substance according to the United States Drug Enforcement Administration, meaning it is considered to have no accepted medical use. This classification creates immense difficulty for researchers seeking to study potential medical applications of cannabis.

Extensive clinical trials are required to demonstrate a treatment's safety and efficacy to a rigorous standard before it can be approved, but strict regulations and the Schedule I status of cannabis make research extraordinarily challenging.

Researchers must contend with onerous registration processes, security and monitoring requirements, import and export restrictions, and limited funding options due to cannabis's legal status. These factors collectively slow the pace of research and increase its costs considerably.

If and when medical cannabis treatments are brought forward for regulatory approval, agencies may view them with more skepticism compared to other substances due to the ongoing conflict between scientific evidence and legal classification of cannabis. Resolving this conflict is critical to helping the cannabis use disorder market reach its full potential.

Market Opportunity - Emerging Research on Non-Psychoactive Cannabinoids for Addiction Treatment

There is a significant opportunity for the cannabis use disorder market from emerging research on non-psychoactive cannabinoids and their applications. In particular, cannabidiol (CBD) is being extensively studied for its therapeutic potential without psychoactive side effects. CBD does not directly activate the cannabinoid receptors that are responsible for marijuana's psychoactivity.

Several studies have found CBD may help reduce cravings and relapse rates in individuals with cannabis use disorder by its calming and anti-anxiety effects. CBD is also being studied for its ability to mitigate some of the adverse cognitive and psychiatric effects of THC, the primary psychoactive compound in marijuana. If CBD or other non-psychoactive cannabinoids are proven effective and approved to treat cannabis addiction, it could open up a substantial market. These treatments may be more widely acceptable than therapies utilizing psychoactive cannabis extracts.

The low abuse potential further increases accessibility and commercial viability. Continued preclinical and clinical research focused on isolating therapeutic compounds in cannabis holds great promise to expand options for those struggling with cannabis use disorder.

Cannabis Use Disorder (CUD) encompasses a spectrum from mild to severe use, with progressive stages requiring different treatment approaches. For mild CUD, prescribers prefer non-pharmacological options like cognitive behavioral therapy to address underlying causes and develop coping strategies.

However, for more severe forms, medication-assisted treatment is often recommended. When pursuing abstinence, prescribers may initially prescribe FDA-approved medications like Naltrexone (Brand name: Vivitrol) or Acamprosate (Brand name: Campral). Naltrexone, administered via monthly injection, works to reduce cannabis cravings by blocking opioid receptors in the brain. Acamprosate helps prevent relapse by restoring chemical imbalances caused by chronic use.

If a patient experiences repeated relapses or fails to achieve abstinence, alternative medications are considered. certain Antidepressants like Fluoxetine (Brand name: Prozac) may be prescribed off-label to reduce cravings and co-occurring depression. Prescribers also consider use of anti-epileptics like Topiramate (Brand name: Topamax) that can blunt euphoric effects and discourage further use.

Important factors influencing medication choice include a patient's prior treatment history, psychiatric co-morbidities, drug preferences, and insurance coverage. A team-based approach combining medication with counseling/therapy offers the best outcomes for severe, long-term cannabis dependence. Regular monitoring is also key to maintaining sobriety.

Cannabis Use Disorder progresses through mild, moderate, and severe stages. Treatment is tailored based on the stage of the disorder.

For mild cases, behavioral therapies are first-line options. Cognitive behavioral therapy (CBT) helps patients identify triggers and learn coping skills to abstain from use. Contingency management provides incentives to encourage abstinence.

As the disorder advances to moderate severity, outpatient medication may be added to behavioral treatments. Naltrexone (brand name Revia) is an opioid antagonist that reduces cravings by blocking the dopamine-releasing effects of cannabis. Unlike other addictive substances, no FDA-approved medications exist specifically for cannabis use disorder. However, naltrexone off-label use has shown promise in clinical studies by decreasing relapse risk by half compared to placebo.

For severe cases, intensive outpatient programs or inpatient treatment may be necessary. These combine behavioral therapies with medication management and peer support. If relapse occurs with naltrexone, extended-release injectable naltrexone (Vivitrol) can be considered, as it avoids issues with poor oral compliance.

The multi-pronged biopsychosocial approach that matches treatment intensity to disease severity has proven most effective long-term for Cannabis Use Disorder.

Strategic Partnerships and Collaborations:

One of the most effective strategies adopted by leading companies has been forming strategic partnerships and collaborations. For example, in 2020, Indivior entered into a partnership with Algernon Pharmaceuticals to develop NP-120 (Dextromethorphan + Quinidine) for the treatment of Cannabis Use Disorder.

Acquisitions of Novel Drug Technology Platforms:

Another dominant strategy has been acquiring novel drug technology platforms with potential drug candidates in the pipeline. In 2018, Alkermes acquired Rodin Therapeutics to gain access to their portfolio of molecules focused on addictive disorders like Cannabis Use Disorder. This included a Phase 2 candidate (RT-601) targeting the dopamine D3 receptor.

Focus on Novel Mechanisms of Action:

Leading players are focusing R&D efforts on developing drugs with novel mechanisms of action. For example, Otsuka is developing brexanolone (SAGE-217), a first-in-class positive allosteric modulator of GABAA receptors for Cannabis Use Disorder.

Geographic Expansion into Emerging Markets:

As cannabis use and associated disorders rise globally, major companies are adopting geographic expansion strategies, especially in regions emerging cannabis markets like Latin America, Asia and Africa. For example, Indivior has expanded availability of SUBLOCADE (buprenorphine) from the US and Canada into Australian and New Zealand markets to tap growing patient demand.

Insights, By Treatment: Growing Preference for Drugs with Fewer Side Effects

In 2024, pharmacotherapy segment is expected to hold 53.7% share of the cannabis use disorder market owning to various pharmacological options with fewer side effects.

Pharmacotherapy segment holds the largest share primarily because of availability of diverse range of drugs that are more effective in treating cannabis use disorder and have relatively lesser side effects compared to behavioral therapies. Some of the major drugs available under pharmacotherapy include synthetic cannabinoids like dronabinol and nabilone, which mimic the active components in cannabis. These drugs help reduce withdrawal symptoms without producing psychoactive effects.

CB1 receptor antagonists such as rimonabant are also gaining prominence due to their ability to competitively bind to CB1 receptors in the brain to reduce the rewarding and reinforcing effects of cannabis. Additionally, antidepressants such as fluoxetine have shown promise in reducing craving and relapse. The availability of such pharmacological options with high efficacy and less risk of side effects has made pharmacotherapy the most preferred treatment modality. Further advances in formulations that optimize drug delivery through newer routes of administration can provide improved treatment adherence and clinical outcomes for patients.

Insights, By Route of Administration: Oral Administration Assures Adherence to Treatment Plan

Oral route of administration is expected to contributes 60.5% share of the cannabis use disorder market in 2024, owning to the advantage of oral self-administration that eases adherence to treatment plan.

The oral route holds a lion's share because it allows patients to conveniently self-administer drugs as part of their daily treatment plan. It provides simplicity and discretion compared to alternative routes. Many pharmacotherapy drugs used for treating cannabis use disorder are available in oral formulations such as tablets, capsules, lozenges, etc., which patients can discreetly take at home without needing assistance. This eases adherence challenges and improves treatment compliance.

Oral drugs also permit flexible dosing schedules suited to individual patient needs. The non-invasive nature of oral administration puts users at ease, encouraging long-term adherence critical to management of a relapsing disorder like cannabis use. Novel drug delivery technologies further help overcome issues like reduced oral bioavailability and first-pass metabolism to optimize benefits of this convenient administration route.

Insights, By End User: Higher Insurance Coverage and Reimbursement

Hospitals are projected to hold the highest share in the cannabis use disorder market owing to higher insurance coverage and reimbursement for treatments.

The hospital segment accounts for the major market share as most insurance plans have better coverage for inpatient/outpatient treatments in hospitals compared to other settings.

Hospitals can provide comprehensive treatment approaches through multidisciplinary teams of doctors, psychologists, social workers etc. They also have necessary infrastructure and facilities to manage both medical and behavioral aspects along with any co-occurring conditions.

Many government-sponsored insurance plans often specify higher reimbursement limits for treatments in hospitals. This makes cannabis use disorder management more affordable for patients at hospitals. The availability of bulk funding and reimbursements have made hospitals a popular choice.

With growing awareness, more insurance providers are expanding their network to cover specialized addiction treatment hospitals, thereby driving their market dominance.

• Approximately 9% of all cannabis users develop dependence, and this percentage increases among those who begin using in adolescence. The growing use of cannabis globally underscores the need for dedicated treatments, especially as more countries move toward legalization.
• Global Impact: An estimated 22 million people worldwide suffer from CUD, emphasizing the need for effective treatments.
• Youth Vulnerability: Studies indicate that individuals who start using cannabis before age 18 are 4 to 7 times more likely to develop CUD than adults.
• Clinical Trials Expansion: There has been a surge in clinical trials focusing on pharmacological interventions for CUD, indicating growing scientific interest and investment in this area.
• Government Initiatives: Some governments are funding programs to address cannabis misuse, reflecting recognition of CUD as a public health concern.

The major players operating in the cannabis use disorder market include Aelis Farma, Indivior, Pfizer, Corbus Pharmaceuticals, Zynerba Pharmaceuticals, GW Pharmaceuticals, and Insys Therapeutics.

• In June 2024, Aelis Farma announced that its CB1 receptor modulator, AEF0117, entered Phase IIb trials for the treatment of Cannabis Use Disorder (CUD). This drug showed promise in early trials by significantly reducing the effects of cannabis without triggering withdrawal symptoms. AEF0117 specifically targets the CB1 receptor and blocks THC's behavioral effects, offering a novel approach to reducing cannabis dependence. The ongoing Phase IIb trial is expected to further evaluate the drug's efficacy in treating moderate to severe CUD​.
• In February 2024, Pfizer initiated research into synthetic cannabinoids targeting addiction mechanisms. Their preclinical results could pave the way for a novel oral drug for CUD. Pfizer is known for extensive research in therapeutic areas, including investigational compounds for various conditions.
• In August 2023, Aelis Farma announced positive Phase II clinical trial results for AEF0117, a compound aimed at reducing cannabis dependence. This trial showed promising results, indicating that AEF0117 has the potential to lower cannabis use in individuals with moderate to severe Cannabis Use Disorder (CUD). This development strengthens Aelis Farma’s position in the CUD treatment space, potentially impacting market dynamics by offering an innovative solution in a largely underserved therapeutic area.
• In May 2023, GW Pharmaceuticals began a new clinical study investigating the use of a CBD-based drug for treating CUD. As a company with a strong track record in cannabinoid therapies, this move could expand their portfolio and offer new hope for patients. GW Pharmaceuticals has a strong history of researching and developing CBD-based treatments, particularly for conditions like epilepsy and glioma.
• In February 2023, Indivior PLC completed the acquisition of Opiant Pharmaceuticals, enhancing its portfolio of addiction treatments. This acquisition, valued at approximately $145 million with potential additional payments, was strategically aimed at strengthening Indivior’s focus on substance use disorder therapies, including treatments for opioid overdose and other substance use disorders. Specifically, Opiant’s pipeline includes OPNT003, a nasal spray for opioid overdose, and early-stage programs targeting conditions such as alcohol use disorder and acute cannabinoid overdose (a relevant condition for Cannabis Use Disorder therapies).

• By Route of Administration
  • Oral
  • Transdermal
  • Inhalation
  • Sublingual
• By End User
  • Hospitals
  • Specialty Clinics
  • Rehabilitation Centers
  • Homecare Settings