Cannabis extracts are used for various medicinal and recreational purposes. Cannabis extracts contain concentrated cannabinoids and terpenes derived from the cannabis plant. Cannabis extracts exist in various forms including concentrates, isolates, and distillates that provide high potency and consistency for consumers. Common uses include treatment of chronic pain, epilepsy, depression, anxiety, and other ailments.

The global cannabis extract market is estimated to be valued at US$ 10,704.56 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 Dynamics:

Increasing legalization of cannabis for medical and recreational use across various countries is a major factor driving growth of the cannabis extract market. According to the United Nations Office on Drugs and Crime, around 47 countries and territories have legalized the use of cannabis for medical purposes. Countries such as Canada and Uruguay have legalized cannabis for adult use as well. This has increased availability and demand for cannabis extracts globally. Additionally, advancements in extraction technologies have yielded Cannabis extracts of higher quality and consistency. Supercritical CO2 extraction allows for solvent-less extraction and produces high potency concentrates without residual solvents. Innovation in newer extraction processes are expected to provide new opportunities for extract manufacturers over the forecast period.

SWOT Analysis

Strength: The cannabis extract market is witnessing strong growth owing to increasing legalization of cannabis for medical as well as adult-use in many countries. Cannabis extracts offer several health benefits such as relief from chronic pain, anxiety, epilepsy, and other medical conditions. Extraction methods allow concentration of cannabinoids like THC and CBD in standardized, consistent formulations. This is improving the efficacy and credibility of cannabis-based medicines.
Weakness: Research on applications and side effects of cannabis extracts is still limited. Long term effects of cannabis consumption are yet to be fully understood. Social stigma around cannabis continues to impact its uptake to some extent. Regulatory policies around production, distribution and sales of extracts vary widely globally creating uncertainty.
Opportunity: Many countries are expected to legalize cannabis in the coming years expanding the potential market scope. New product forms incorporating cannabis extracts like edibles, topicals and vapes are being introduced. Technological advancements are improving yield and efficacy of extraction methods supporting industry growth. Cannabis extracts can replace opioid-based medications for pain management driving replacement opportunities.
Threats: Threat of oversupply leading to a price crash exists as more countries legalize cultivation. Stringent regulations and minimal research funding pose challenges to cannabis companies. Rising industrial hemp production may squeeze margins of extract producers. Public health advocacy groups can potentially curb legalization initiatives.

Key Takeaways

The global cannabis extract market is expected to witness high growth over the forecast period. The global Cannabis Extract Market is estimated to be valued at US$ 10,704.56 Mn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030.

North America currently dominates the market owing to large scale legalization in Canada and certain states of the US. However, Europe is anticipated to witness the fastest growth on account of liberal medical regulations in countries like Germany and Netherlands. The Cannabis extract market in Latin America and Asia Pacific regions is also projected to grow at a notable pace led by Argentina, Brazil, Australia, South Korea and Thailand.

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 companies have wide international presence and are investing in R&D to develop advanced extracts

Get More Insights On This Topic: https://www.trendingwebwire.com/cannabis-extract-market-analysis-growth-forecast-outlook-2023-2030/