April 17, 2024
Cannabis Extract Market

Cannabis Extract Market Is Poised To Grow Rapidly By Increasing Legalization Trends

The cannabis extract market comprises cannabis resins, cannabidiol (CBD), and others that offer several medicinal and recreational benefits. Cannabis extracts find wide applications in cosmetics & personal care products, pharmaceuticals, food & beverages, and others due to their healing and therapeutic properties. 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.

Key Takeaways

Key players operating in the Cannabis Extract Market Demand are Zeta Global Corp, Oracle Corporation, mParticle Inc., Salesforce.com Inc., BlueConic, Adobe Inc., Tealium, SAP SE, Acquia Inc., and Segment.Io Inc. (Twilio). These players are focusing on expanding their product portfolio and global footprint to gain higher market shares. The growing legalization of cannabis for medical and recreational use across regions is fueling the demand for cannabis extracts. North America dominated the cannabis extract market owing to the increasing commercialization of cannabis-based products due to legalization in major countries like the U.S. and Canada.

The Global Cannabis Extract Market is driven by the growing acceptance of cannabis-based medical treatments backed by supportive government initiatives and an increasing number of cannabis dispensaries. Various studies validating the medicinal properties of cannabis extracts for conditions like chronic pain, arthritis, and cancer are driving the adoption of such products. Besides, the rising product penetration in the food & beverage industry with cannabis-infused beverages and edibles is creating lucrative opportunities for various cannabis extract manufacturers. However, the presence of substitutes like hemp seed oil and complex manufacturing processes may impede the market growth.

Market key trends

One of the key trends gaining traction in the cannabis extract market is the increasing popularity of personalized cannabis products. Manufacturers are focusing on understanding consumer needs and formulating customized cannabis extracts for specific therapeutic requirements. This involves varying the profiles of cannabinoids, terpenes, and flavonoids based on the condition and intended effects. Another notable trend is the consolidation of cannabis extract companies to expand globally. Major players are pursuing mergers and acquisitions to penetrate international markets and diversify their product offerings. Further, with the growing demand, companies are investing in advanced extraction technologies like supercritical CO2 extraction to produce high-quality, contaminant-free cannabis concentrates at scale.

Porter’s Analysis

Threat of new entrants: The market has high barriers for new entrants to enter due to legalization issues and high capital requirements.

Bargaining power of buyers: There is moderate bargaining power for buyers as they have high standards and requirements from products.

Bargaining power of suppliers: Suppliers have low bargaining power due to presence of many suppliers in the market and negligible switching cost for buyers.

Threat of new substitutes: Substitutes have low threat as products in this market are unique with high switching costs.

Competitive rivalry: The rivalry among existing competitors is high due to rising demand and digital disruption.

Geographical Regions

North America holds the major share in the cannabis extract market currently due to legalization and increasing acceptance of cannabis products. The United States, Canada and Mexico are considered as major revenue pockets in North America.

The Asia Pacific region is expected to witness the fastest growth rate during the forecast period due to growing awareness about benefits of cannabis extracts and increasing legal acceptance of cannabis in various countries. China, India, Japan, Australia and South Korea are likely to offer lucrative opportunities for market players in Asia Pacific.

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