The global 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 extract refers to cannabis plant derivatives obtained through different solvent extraction processes including ethanol, CO2, solvent-free extraction etc. Cannabis extracts are consumed for medicinal and recreational purposes and are available in different forms and consistencies including liquid, wax, resin, oil or distillates. Cannabis oil and extracts are extracted to contain high levels of cannabinoids such as THC and CBD which provide therapeutic benefits. They are used for treatment of various medical conditions including chronic pain, cancer, epilepsy, anxiety among others. Increasing legalization of cannabis for medical use globally and growing demand for cannabis oil and extracts for medical and recreational purposes is expected to drive the market growth over the forecast period.
Market key trends:
One of the key trends in the cannabis extract market is increasing preference for edible cannabis extracts and infused products. Manufacturers are developing various edible products infused with cannabis extracts including chocolates, cookies, candies, beverages etc. For instance, cannabis infused beverages are gaining popularity as an alternative to smoking or vaping cannabis. Moreover, growing demand for CBD extracts for use in wellness and personal care products is also contributing to market growth. Rising consumer awareness about therapeutic benefits of cannabis extracts coupled with legalization of cannabis in various regions is expected to boost the demand for cannabis extracts over the coming years.
Porter’s Analysis
Threat of new entrants: The cannabis extract industry requires high initial capital investments and compliance with stringent government regulations which poses significant entry barriers for new players.
Bargaining power of buyers: Large buyers like pharmaceutical companies and food & beverage manufacturers have strong bargaining power over suppliers due to their large demand and purchase volumes.
Bargaining power of suppliers: The presence of numerous cannabis cultivators and extraction technology providers limits the bargaining power of individual suppliers in this market.
Threat of new substitutes: Alternative medical cannabinoids and synthetic cannabis have potential to substitute cannabis extracts. However, natural extracts are preferred for their wider range of therapeutic compounds.
Competitive rivalry: The market is highly competitive with major players investing in R&D and global expansion. Small players focus on niche segments to avoid direct competition.
Key Takeaways
The Global Cannabis Extract Market Size is expected to witness high growth, exhibiting a CAGR of 17% over the forecast period, due to increasing legalization of cannabis for medical use across various countries.
North America, dominated by the U.S. and Canada, represents the largest regional market for cannabis extracts, due to early legalization for medical use and growing recreational cannabis acceptance. The Asia Pacific market is predicted to exhibit the fastest growth rate during the forecast years owing to widening patient pool and rising healthcare expenditure in emerging countries.
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. Players are involved in new product launches, facility expansions, and strategic partnerships to strengthen their market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it