News

Cannabis pharmaceuticals gain credibility in evolving market

Published on August 1, 2026 by Pat Bulmer

Photo: Contributed/Jazz Pharmaceuticals

Research and Markets projects the global market for cannabis pharmaceuticals will grow at an annual rate of 57% from US$4.7 billion in 2025 to reach US$111.1 billion by 2032.

“The growth in the cannabis pharmaceuticals market is driven by several factors, including expanding medical cannabis legalization, increased R&D investment, and growing patient demand for alternative treatments. Regulatory approvals for cannabis-based drugs in North America and Europe have legitimized the sector,” researchers say in a news release touting the Cannabis Pharmaceuticals – Global Strategic Business Report.

“The primary demand for cannabis-based pharmaceuticals comes from patients suffering from chronic pain, neurological disorders, and mental health conditions,” Research and Markets says, offering two examples in its release: Epidiolex, a CBD-based drug from Jazz Pharmaceuticals, has gained US FDA (and Health Canada) approval for treating rare forms of epilepsy, while Sativex, also developed by Jazz originally, is an oral spray containing THC and CBD, widely used to reduce multiple sclerosis-related stiffness and spasms.

Jazz Pharmaceuticals was founded in California, is now headquartered in Dublin, but has operations in many countries — including Canadian headquarters in Mississauga and manufacturing in Vancouver.

Cannabis technology a booming field

If growing cannabis doesn’t make you rich, maybe developing technology to help growers and retailers will.

The worldwide market for cannabis technology will be worth some $28 billion by 2032, a report says.

Research and Markets says the cannabis tech segment is already at $5.6 billion, but will grow 26% a year to hit $28.3 billion by 2032.

“The rapid expansion of the legal cannabis industry has created a surge in technological innovations aimed at optimizing cultivation, processing, and distribution, says a release touting the 204-page Cannabis Technology – Global Strategic Business Report.

“Advanced cultivation techniques, automation, and data analytics are enhancing efficiency and product quality across the supply chain,” the research firm says.

Technology is also needed for companies to comply with increasing regulations that come with the growing market, researchers said.

“Governments worldwide are imposing strict compliance regulations, making tracking and automation technologies essential for businesses.”

“Technology is transforming every aspect of the cannabis supply chain, from cultivation to retail,” the report said.

“The adoption of cannabis technology is most prevalent in large-scale cultivation operations, medical cannabis production, and dispensary management. Licensed producers are investing in automation and AI-driven analytics to maximize efficiency and ensure regulatory compliance.

“Automated greenhouse systems equipped with artificial intelligence (AI) are optimizing environmental conditions for higher yields and improved cannabinoid profiles.”

Meanwhile, “pharmaceutical cannabis companies are leveraging advanced extraction and formulation technologies to develop high-precision cannabinoid medications.

“The retail sector is also rapidly adopting cannabis-specific e-commerce solutions, digital payment systems, and AI-based inventory management.”