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 extracts refer to concentrates obtained from cannabis plants through extraction processes such as distillation and solvent extraction. Cannabis extracts offer benefits such as customized dosage, taste masking effects and enhanced potency as compared to raw cannabis. The growing medical applications of cannabis extracts is fueling the demand in the market.

Market key trends:

One of the major trends in the cannabis extract market is increasing use of advanced extraction technologies. Previously, solvent extraction methods involving butane, ethanol and carbon dioxide were commonly used. However, companies are increasingly adopting supercritical fluid extraction technology which uses supercritical carbon dioxide. This extraction method yields higher potency extracts without residual solvents. It is a cleaner and more environment-friendly process. Furthermore, the legalization of cannabis for medical and recreational use in several countries has boosted the market growth. As per statistics, worldwide spending on legal cannabis is projected to reach $57 billion by 2027.

SWOT Analysis

Strength: The growing legalization of cannabis for medical and recreational use across various countries is expected to drive the growth of the cannabis extract market. There is an increasing acceptance and awareness among consumers regarding the medical benefits of cannabis.

Weakness: Stringent regulations regarding the production, distribution, and use of cannabis extracts can negatively impact the market’s growth. The psychoactive substance THC present in cannabis extracts is still considered illegal in many countries.

Opportunity: Rising research into the medical benefits of cannabis compounds like CBD provides opportunities for the development of new drugs and therapeutic applications. Cannabis extracts show promising results in reducing chronic pain, treating epilepsy, and other conditions.

Threats: The availability of substitutes like synthetic cannabinoids poses competition to natural cannabis extracts. Negative social attitude and stigma associated with marijuana consumption also hinders the demand.

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 marijuana for medical and recreational purposes in countries like Canada and some parts of the U.S. The market size for 2023 is estimated at US$ 10704.56 Mn.

Regional analysis: North America dominates the cannabis extract market currently due to the growing adoption of cannabis for both medical and recreational use in Canada and certain U.S. states. The Asia Pacific region is expected to grow at the fastest pace during the forecast period with countries like China, Australia, and South Korea gradually legalizing 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. These companies are investing heavily in R&D to develop innovative cannabis extract products as well as expanding their production facilities to cater to the growing demand.

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