Cannabis Extract Market - Trend, Growth, Forecast 2024–2032

Cannabis Extract Market Synopsis:

Cannabis Extract Market Size Was Valued at USD 3.6 Billion in 2023, and is Projected to Reach USD 18.7 Billion by 2032, Growing at a CAGR of 20.1% From 2024-2032.

The Cannabis Extract Market refers to the industry where companies engage in the production or provision as well as the sale of concentrates gotten from cannabis plants. Marijuana extracts involve the process of pulling out cannabinoids and terpenes from the plant through extraction process that may be through solvents or without solvents. These extracts are in the form of oils, tinctures and capsules and are be used for medical and social purposes. The market has expanded because more jurisdictions are legalizing the use of cannabis extracts, more people are learning about the medical uses of cannabis, and consumers care about the ability to measure the quantity they are taking.

The Cannabis Extract Market has been growing significantly in the recent past and the primary driver of this has been the liberalization of the use of cannabis for medical and personals usage. When more regions, such as countries and some states of the USA, opt for legalizing the product, there arises a need to consume the best quality extracts. Cannabis is currently undergoing a continuum of expansion as a medicine owing to supportive results of chronic pain, anxiety, and epilepsy patients. Also, the recreational market is continuously growing, and people prefer using vape oils and edibles as a strong and easy way of consuming marijuana.

This market is in further affected by the increase in extraction technology leading to higher purity Marijuana products with preferred cannabinoid characteristics. The current proliferation of cannabis-infused health and nutritional supplements including the oils and balms has made the extracts more popular than marijuana as such. The market is expected to remain on an upward rise in the grounds of shifting regulations in different countries to allow the cannabis trade, increased funding in start-ups dealing with the cannabis trade and increased demand in high-quality cannabis extract for special purpose of curing diseases.

Cannabis Extract Market Trend Analysis:

Growing Popularity of CBD Products

• The trend presenting the Cannabis Extract Market today can be considered the increase of demand for cannabidiol (CBD) products in the market. Since cannabinoids derived from cannabis do not make the user high, CBD has attracted a lot of interest as research shows it has health benefits. Specifically, wellness has adopted cannabis in different products such as oil, tincture and lotion with prescription utilized for various ailments such as inflammation, anxiety, and sleeping disorders. CBD products are rapidly gaining popularity due to growing clinical evidence supporting cannabinoids’ effectiveness, and popular culture nods to its use. CBD products are gradually gaining popularity and the segment is projected to grow further in the coming years and make a big contribution to the cannabis extract market.

The medical cannabis sector presents a significant opportunity 

• This paper thus concludes that the medical cannabis segment offers a great opportunity for expansion in the Cannabis Extract Market. The legal acceptance of medical cannabis, as new research on the subject of the use of cannabis in therapeutic practices comes up including the treatment of chronic pain, multiple sclerosis, and epilepsy continues to rise globally. Many countries such as Germany, Canada today have adopted and legalised the use of medical cannabis and this has created a very big market for the manufacturers of cannabis extract. Also, there will be a growing demand for pharmaceutical grade extracts such as cannabis extracts particularly those with set ratios of cannabinoids since many health care providers are using cannabis-based medicines as part of the tool kit. In addition, clinical research into cannabis extracts as cancer treatment, neurological illnesses, and COVID-19 comorbidities continues, and the medical cannabis market is lucrative and continuously growth.

Cannabis Extract Market Segment Analysis:

Cannabis Extract Market is Segmented on the basis of Product Type, Extract Type, Sources, and Region

By Product Type, Oils segment is expected to dominate the market during the forecast period

• In terms of product type, the oils segment from the various segments of cannabis extract market share is likely to grow throughout the forecast period significantly. Users prefer cannabis oils because they are portable, easy to ingest or apply and because they offer different measure portions. It can be swallowed, inhaled or used as ointments and creams, thus appropriate for leisurely and health wise exploits. Cannabis oils are also gradually increasingly in demand as they can be stored for long periods than all other forms like the dried flowers. In the medical context, cannabis oils are used where there is need to regulate dosage such as in epilepsy, chronic pain and anxiety amongst others. The oils segment is expected to see continuing improvement as more consumers’ seek out these products for the health and practicality.

By Extract Type, Full Spectrum Extracts segment expected to held the largest share

• Full Spectrum Extracts will likely represent the biggest share the size of the Cannabis Extract Market by extract type. These extracts include all the cannabinoids, terpenes, and other valuable elements provided by the cannabis plant which can provide the ‘entourage effect’ which many users claim to maximize the healing properties of cannabis. Ableton’s full spectrum products are preferred by the medical marijuana patient and leisure consumer due to reasons that Whole plant extracts afford a total experience which may be provided by the selective cannabinoids such as CBD or THC. These extracts are frequently used in products associated with treating pains, anxiety, and insomnia. Because the trend of the cannabis consumption continues to move toward more natural and sane products, full spectrum extracts should remain the primary market force in the future.

Cannabis Extract Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• Hence, the regional segment with respect to the cannabis extract market is expected to be led by North America in the year 2023 owing to the rising legalization of cannabis in Canada along with several states in the United States of America. For this reason, the region provided the largest market share that at a premised estimate of approximately 45 percent for the legalization of cannabis for both medical and the recreational use. Canada has gone a step further to legalize the use of cannabis across the country making it amongst the world’s largest exporter and producers of the drug while the US market is constantly evolving as more states approve use of cannabis and new cannabis based products hit the market. The availability of key players and the growth of extraction technologies have provided a stronger and more favorable outlook for North America as the leading cannabis extract market worldwide. Also, an increasing number of customers who prefer buying quality potent cannabis products are a major driving factor for demand throughout the region.

Active Key Players in the Cannabis Extract Market:

• Aphria Inc. (Canada)
• Aurora Cannabis (Canada)
• Canopy Growth Corporation (Canada)
• Cronos Group (Canada)
• Curaleaf Holdings (U.S.)
• Green Thumb Industries (U.S.)
• GW Pharmaceuticals (UK)
• HEXO Corp. (Canada)
• MedReleaf (Canada)
• Organigram Holdings Inc. (Canada)
• Supreme Cannabis (Canada)
• Tilray (Canada)
• Trulieve Cannabis Corp. (U.S.)
• Village Farms International (Canada)
• VIVO Cannabis (Canada)
• Other Active Players