July 13, 2024
Cannabis Extract Market

The Rapid Legalization Of Cannabis Is Anticipated To Open Up The New Avenue For Cannabis Extract Market

The Cannabis Extract Market is estimated to be valued at US$ 10704.56 Mn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Cannabis extracts are refined products extracted from the cannabis plant through various processes such as distillation and solvent extraction. Cannabis extracts contain more concentrated levels of cannabinoids like THC and CBD, as compared to raw cannabis, and are used for various medical and recreational purposes. Cannabis extracts come in different forms like oils, waxes, shatter, budder, distillates and isolates which can be consumed through various methods such as oral ingestion, topical application, and inhalation. Rising legalization of cannabis across various countries is augmenting the demand and growth of cannabis extracts market.

Market Dynamics:

Rising prevalence of medical conditions and health issues like chronic pain, anxiety, epilepsy and cancer is one of the major drivers of the cannabis extract market. As per recent studies, cannabis extracts containing THC and CBD have shown promising therapeutic benefits in treating several medical conditions. For example, studies have found that cannabis extracts have anti-inflammatory and pain relieving effects which help in managing chronic pain. Similarly, cannabis extracts have shown benefits in reducing epileptic seizures and treating cancer symptoms like nausea and lack of appetite. This is increasing the demand for cannabis extracts in the medical sector.

Another driver for the market is growing adoption of cannabis extracts in food & beverages and cosmetic products. Cannabis infused gummies, chocolates and beverages containing THC and CBD are gaining popularity due to their stress and pain relieving properties. Similarly, cannabis seed oil and cannabis sativa seed oil which are rich in antioxidants, vitamins and essential fatty acids are being used in various cosmetic products like lotions, balms and face masks. As customers increasingly demand natural, plant-based products, this trend is expected to boost the sales of cannabis extract over the forecast period.

Segment Analysis

The global cannabis extract market can be segmented based on product type into oil, edibles, tinctures and others. Among these, the oil segment holds the dominant market share owing to high demand for cannabis oil extracts which are used in medical purpose as well as recreational activities like massage therapy, topical creams, etc. The oil extracts provide various health benefits such as relief from chronic pain, inflammation, anxiety and others.

PEST Analysis

Political: Some countries and states have legalized the use of cannabis for both medical and recreational purposes which is promoting the growth of the extract market. However, regulations vary significantly across various regions.

Economic: Rising disposable income, growing awareness about health benefits of cannabis extracts are fueling the market growth. In addition, job opportunities are being created in cannabis cultivation, processing, manufacturing and distribution.

Social: Acceptance of cannabis for medical use is increasing due to potential therapeutic benefits. Moreover, legalization of cannabis for recreational purpose in some regions is positively impacting the market.

Technological: New technologies for precision agriculture, optimized lighting solutions and automated processing are helping increase cannabis yields while reducing production costs. Furthermore, advancement in extraction methods is enhancing product quality and standardization.

Key Takeaways

The Global Cannabis Extract Market Size is expected to witness high growth, exhibiting CAGR of 17% over the forecast period, due to increasing legalization of cannabis across regions. The market size for 2023 is estimated to be US$ 10704.56 Mn.

Regional analysis: North America holds the largest share in the global cannabis extract market owing to legalization of cannabis in major countries of the region. Canada and certain U.S. states have legalized cannabis for both medical and recreational purposes which has boosted the market growth. Another fast growing regional market is Europe due to increasing disease prevalence and rising acceptance of medical cannabis.

Key players operating in the cannabis extract market are 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. Key players are adopting new product launch, partnership, and expansion strategies to strengthen their business position in the market. For instance, in 2023, Canopy Growth Corporation launched a new range of cannabis extracts in vaporizable and oral formats for medical patients in Canada.

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