Cannabis Extract Market Poised To Register Strong Growth On Back Of Increasing Legalization Of Cannabis
The global cannabis extract market is a rapidly evolving space, gaining traction across North America and Europe. Cannabis extracts provide several therapeutic benefits and find wide applications in pharmaceuticals, food & beverages, personal care products, and others. Cannabis extracts contain high concentrations of cannabinoids like THC and CBD and offer advantages like consistency of dosage and ease of ingestion over naturally growing cannabis. With more countries legalizing medical and recreational use of cannabis, the demand for high-quality cannabis extracts is witnessing a solid rise.
Cannabis extracts are processed using advanced techniques like solvent extraction, supercritical fluid extraction, short path evaporators, and chromatography to derive concentrates high in targeted cannabinoids and other compounds. These premium quality extracts appeal to health-conscious consumers relying on cannabis therapy for conditions like chronic pain, mental health issues, cancer, epilepsy, and more. Growing prevalence of such ailments along with surging aging population susceptible to various illnesses is fueling the incorporation of extracts in wellness products.
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 leading brands are focusing on new product innovations, aggressive marketing strategies, and strategic collaborations to strengthen their market presence.
The legal cannabis industry offers massive opportunities for players across the value chain to serve the growing consumer demand. Cultivators, manufacturers, and retailers are investing heavily to set up Licensed Producer facilities, sophisticated extraction labs, and modern dispensaries. This is helping facilitate safe and regulated supply of extracts.
Major players are scouting attractive international markets and forging licensing agreements to augment sales from European, Asian, and Latin American countries gradually weed legalization. Companies are also undertaking mergers and acquisitions to broaden their geographic coverage and product portfolio to leverage lucrative expansion avenues on a global scale.
Market Drivers
- Increasing legalization of cannabis for medical use across regions like North America, Europe, and Asia Pacific is a key market driver as it encourages more funding in research and commercial production of extracts.
- Growing consumer awareness about various medical benefits of specific cannabinoids is propelling the popularity of extracts standardized for THC or CBD content.
Market Restraints
- Usage of extraction solvents like ethanol, butane, and propane poses safety hazards if not handled carefully which is a challenge for extract manufacturers.
- Legal restrictions in many countries hamper the proliferation of extracts containing high psychoactive THC levels. This limits business scopes for some market players.
Segment Analysis
The Cannabis Extract market can be segmented based on product into cannabis concentrates and cannabis infused products. Cannabis concentrates dominate the market as they provide concentrated forms of cannabinoids like THC and CBD. Cannabis concentrates include hashish, hash oil, kief, rosin and others. They offer a more potent effect as compared to traditional cannabis and are preferred by consumers and medical users who want a precise dosage.
Global Analysis
Regionally, North America dominates the Cannabis Extract market due to legalization of cannabis in major countries like United States and Canada. According to estimates, the North American market was valued at US$ 3,700 Mn in 2020. The region will continue to be the largest market during the forecast period due to growing product adoption for medical as well as recreational purposes in the region. Europe is the second largest market and is expected to witness strong growth during 2024-2031. Countries like Germany, Italy, Netherlands and Switzerland have legalized cannabis for medical use which is driving the market in the region. Asia Pacific is projected to be the fastest growing market due to increasing social acceptance of cannabis combined with initiatives by regional governments to legalize it for medical purposes in countries like Australia, Thailand and South Korea.
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