Cannabis extract is obtained through complex extraction and purification processes applied on cannabis plants using a solvent such as carbon dioxide, ethanol or olive oil. Cannabis extracts contain high concentrations of cannabinoids like tetrahydrocannabinol (THC) and cannabidiol (CBD) which offer numerous therapeutic benefits for the treatment of chronic pain, arthritis, epilepsy and neurological disorders. The rising legalization of medical cannabis across various countries and the increasing awareness regarding its medicinal properties is propelling the demand for cannabis extracts globally.
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).
The key opportunities in the Cannabis Extract Market include growing acceptance of cannabis-based pharmaceutical products, rising adoption of innovative extraction technologies like supercritical fluid extraction and increasing R&D activities for the development of new medicinal cannabis products.
Technological advancements such as CO2 extraction allows separation of cannabinoids from cannabis plants while maintaining their stability, potency and consistency. New extraction techniques facilitate the production of precise cannabis extracts containing accurate doses of desired cannabinoids.
Market drivers
The rising demand for effective therapies for chronic conditions like cancer pain, arthritis, epilepsy and neurological disorders is a major market driver. Favorable regulatory changes legalizing the medicinal use of cannabis in numerous countries is also propelling the growth of the cannabis extract market. Additionally, the increasing acceptance of cannabis extracts owing to rising awareness regarding their nutritional and therapeutic benefits is bolstering market expansion.
Current Challenges in Cannabis Extract Market:
The Cannabis extract market is experiencing several challenges such as lack of standardization, complex regulations across countries and states, negative social attitudes etc. Due to lack of standardization related to cultivation, manufacturing and quality testing processes, product reliability and safety remains a concern. Regulations also vary significantly across countries and within states of a country. For example, while Canada has legalized cannabis nationwide, its sale and use is still illegal in most parts of the US under federal law. Negative social attitudes and stigma towards use of cannabis also poses challenges. However, with increasing legalization and research, many of these challenges are expected to be addressed over the coming years.
SWOT Analysis
Strength: Increasing legalization and acceptance of medical use; Emerging as an alternative to opioid medications.
Weakness: Complex regulatory environment; Negative social perception in some regions.
Opportunity: Untapped medical market potential; Expanding recreational markets in North America.
Threats: Uncertain long term health effects of extracts; Intense competition in cannabis space
Geographical Regions
In terms of value, the cannabis extract market is currently concentrated in North America which accounts for over 60% share. Within the region, the U.S. and Canada contribute majorly driven by legalization and commercialization of cannabis for medical and recreational use across several states and nationwide in Canada respectively.
The Asia Pacific region is poised to be the fastest growing market for cannabis extracts over the forecast period. Countries like Australia, South Korea, Thailand etc. have legalized cannabis for medical or research purposes in recent years. In addition, changing social attitudes coupled with initiatives to utilize hemp for various industrial applications are aiding the market growth in the region. However, regulations remain complex with cannabis legalization yet to occur in large economies of India and China.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it