The global cannabis extract market is estimated to be valued at US$9,125.8 million in 2022 and is expected to exhibit a CAGR of 17.3% over the forecast period of 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The cannabis extract market refers to the market for various extracts derived from the cannabis plant, including oils, tinctures, concentrates, and isolates. These extracts are gaining popularity in the medical, pharmaceutical, and recreational sectors due to their therapeutic properties and potential health benefits. Cannabis extracts are used for treating various health conditions such as chronic pain, anxiety, epilepsy, and insomnia. These products offer advantages like accurate dosing, rapid absorption, and ease of consumption. The increasing legalization of cannabis in several countries, growing acceptance of medical marijuana, and the expanding range of cannabis-infused products are driving the demand for cannabis extracts in the global market.
Market Key Trends:
One key trend in the cannabis extract market is the growing demand for CBD (cannabidiol) extracts. CBD is a non-psychoactive compound found in cannabis, known for its potential therapeutic effects and health benefits. It is widely used for pain management, reducing anxiety and depression, alleviating cancer-related symptoms, and treating neurological disorders. The increasing awareness about the health benefits of CBD extracts, coupled with the expanding legalization of medical cannabis, is fueling the demand for CBD-based products. Manufacturers are focusing on developing innovative CBD extract formulations and expanding their product portfolios to cater to the growing consumer demand. The CBD extract segment is expected to witness significant growth in the global cannabis extract market during the forecast period.
Segment Analysis:
The cannabis extract market can be segmented based on product type, application, and distribution channel. In terms of product type, the dominating segment is the oil segment. This can be attributed to the increasing demand for cannabis oil for various medical and therapeutic purposes. Cannabis oil has gained popularity due to its potential benefits in alleviating symptoms of chronic pain, epilepsy, and other medical conditions. Moreover, cannabis oil can be easily consumed through different mediums such as tinctures, capsules, and vaporizers, making it a convenient choice for consumers. The oil segment is expected to witness steady growth over the forecast period due to the increasing acceptance of cannabis as a medicinal product.
Key Takeaways:
The global cannabis extract market is expected to witness high growth, exhibiting a CAGR of 17.3% over the forecast period of 2022-2030. This growth can be attributed to several factors. Firstly, the increasing legalization of cannabis for medical and recreational purposes in various countries is driving the demand for cannabis extracts. Moreover, the growing awareness about the potential health benefits of cannabis extracts and the increasing use of cannabis for pain management are further fueling market growth. Additionally, the expanding application of cannabis extracts in industries such as pharmaceuticals, food and beverages, and cosmetics is creating lucrative opportunities for market players.
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 increasing legalization of cannabis for medical and recreational purposes in countries like the United States and Canada. The presence of major market players and the growing acceptance of cannabis extracts among the population are also contributing to the growth of the market in this region.
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 focusing on product innovation, strategic partnerships, and mergers and acquisitions to strengthen their market position and expand their product portfolio. The market is highly competitive, with key players striving to gain a competitive edge in the growing cannabis extract market.
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