February 25, 2024
Cannabis Extract Market

Cannabis Extract Market: Growing Preference for Cannabis-Based Medicines Drives Market Growth

The global cannabis extract market, estimated to be valued at US$9,125.8 million in 2022, is expected to exhibit a compound annual growth rate (CAGR) of 17.3% over the forecast period of 2022-2030, according to a new report published by Coherent Market Insights.

Market Overview:

Cannabis extracts are concentrated forms of cannabis that are derived from the plant’s flowers and leaves. These extracts are used in various industries, including pharmaceuticals, cosmetics, and food and beverages, due to their therapeutic benefits. The demand for cannabis extracts is driven by the increasing preference for cannabis-based medicines, which are believed to have potential health benefits such as pain relief, anti-inflammatory properties, and management of chronic conditions.

Market Key Trends:

One key trend in the cannabis extract market is the legalization of cannabis for medical and recreational use in several countries. The legalization has created opportunities for market players to expand their product offerings and enter new markets. Moreover, the increasing research and development activities in the field of cannabis extracts have led to the introduction of innovative products with enhanced efficacy and bioavailability. These advancements are expected to further fuel the market growth.

Porter’s Analysis:

Threat of new entrants: The threat of new entrants in the cannabis extract market is moderate. While the market presents lucrative opportunities, there are significant barriers to entry, including strict regulations and licensing requirements. Additionally, established players already have a strong foothold in the market, making it difficult for new entrants to gain market share.

Bargaining power of buyers: The bargaining power of buyers in the cannabis extract market is high. As more suppliers enter the market, buyers have a wide range of options to choose from. This gives them the power to negotiate for lower prices and better terms. Additionally, buyers can easily switch suppliers if they are not satisfied with the product or service.

Bargaining power of suppliers: The bargaining power of suppliers in the cannabis extract market is moderate. While there are numerous suppliers available, the quality and reliability of the supply can impact their bargaining power. Suppliers that are able to consistently provide high-quality products and meet the demand of buyers will have more leverage in negotiations.

Threat of new substitutes: The threat of new substitutes in the cannabis extract market is low. Cannabis extract is a unique product with a wide range of applications, including medical and recreational use. While there may be alternative products available, such as synthetic cannabinoids, they do not offer the same benefits and effects as cannabis extract.

Competitive rivalry: The competitive rivalry in the cannabis extract market is high. The industry is highly fragmented, with numerous players competing for market share. Key players in the market are constantly striving to innovate and develop new products to gain a competitive edge. This leads to intense competition and price pressures within the industry.

Key Takeaways:

The global cannabis extract market is expected to witness high growth, exhibiting a CAGR of 17.3% over the forecast period (2022-2030). This growth can be attributed to the increasing legalization of cannabis for medical and recreational use in various countries. The growing acceptance of cannabis extract for its therapeutic properties, such as pain management and treatment of chronic diseases, is also driving market growth.

In terms of regional analysis, North America is expected to be the fastest growing and dominating region in the cannabis extract market. This can be attributed to the legalization of cannabis for both medical and recreational use in several states in the United States and Canada. The increasing number of dispensaries and online platforms for cannabis sales in the region is further fueling market growth.

Key players operating in the cannabis extract market include Canopy Growth Corporation, Aurora Cannabis Inc., Tikun Olam, Cannabis Science Inc., Aphria Inc., Maricann Group Inc., Tilray Inc., VIVO Cannabis Inc., Medical Marijuana, Inc., STENOCARE, Cronos Group Inc., Terra Tech Corp., MedMen, Teva Pharmaceutical Industries Ltd., and Organigram Holdings Inc. These players are focused on product development, partnerships, and mergers and acquisitions to expand their market presence and gain a competitive advantage in the industry.

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