May 24, 2024
Cannabidiol Market

Cannabis Extract Market is expected to be Flourished by Growing Medicinal Applications

Cannabis or marijuana refers to the dried flowers, leaves, stems and seeds from the Cannabis sativa or Cannabis indica plant. Cannabis extracts contain concentrated cannabinoids obtained from the cannabis plant. Cannabis extracts contain high concentrations of cannabinoids like tetrahydrocannabinol (THC) and cannabidiol (CBD) which are obtained from selective extraction methods like ethanol and CO2 extraction. These extracts are utilized for various medical and recreational purposes. For medical use, cannabis extracts are prescribed to treat chronic pain, epilepsy, multiple sclerosis, insomnia and other health issues. They are available in various forms like tinctures, capsules, edible products, topical applications and vaping solutions.

The global Cannabis Extract Market is estimated to be valued at US$ 12331.66 Bn in 2024 and is expected to exhibit a CAGR of 23% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Growing Medicinal Applications: One of the major drivers fueling the cannabis extract market growth is the increasing legalization of cannabis for medicinal use across countries. According to the National Conference of State Legislatures (NCSL), 36 U.S. states, Washington D.C., Guam, and Puerto Rico have legalized cannabis for medical purposes. This has led to increasing demand for cannabis extracts in various pharmaceutical preparations for treatment of chronic conditions. Cannabis extracts are scientifically proven to alleviate symptoms of medical conditions like chronic pain, epilepsy, depression, anxiety and others.

Segment Analysis:

The global cannabis extract market can be segmented on the basis of product, application and distribution channel. Based on product, it is dominated by the oil sub-segment due to its wide applications in medical and recreational purposes. Oil extract contains various cannabinoids like THC and CBD which are majorly used for easing pain and reducing inflammation.

PEST Analysis:

Political: Some nations have decriminalized or legalized cannabis usage which has boosted the market growth. However, stringent regulations in many countries still restrict the market.

Economic: Rising disposable income and growing healthcare spending have positively impacted the demand. The medical cannabis market is further expected to grow owing to its cost-effectiveness over other pharmaceutical drugs.

Social: Changing perception towards the medical benefits of cannabis is a key factor driving the social acceptance. The legalization for recreational use in various states will also impact the social factors.

Technological: New extraction technologies allow efficient manufacturing of targeted cannabinoids. Technologies advancing precision agriculture are helping increase yield and maintain quality standards.

Key Takeaways:

The Global Cannabis Extract Market Share is expected to witness high growth.

North America currently dominates the market owing to the legalization of medical as well as recreational cannabis in major countries of the region. Canada is the fastest growing regional market due to the country fully legalizing cannabis for medical and recreational use in 2018.

Key players operating in the cannabis extract market are Zeta Global Corp, Oracle Corporation, mParticle Inc., Salesforce.com Inc., BlueConic, Adobe Inc., Tealium, SAP SE, Acquia Inc., and Segment.Io Inc. (Twilio). The market players are focused on strategic collaborations and new product launches to gain maximum share. For instance, in 2022, Oracle launched a cannabis technology solution to help businesses overcome challenges related to fluctuating regulations.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it