by 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 (2023-2030), 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, such as oils, tinctures, and concentrates. These extracts find application in various industries, including pharmaceuticals, cosmetics, and food and beverage. With the increasing legalization of cannabis across various countries and the rising acceptance of medical cannabis, the demand for cannabis extracts is expected to witness significant growth.
Market Dynamics:
There are two key drivers fueling the growth of the cannabis extract market. Firstly, the rising demand for medical cannabis products is driving the market growth. The therapeutic properties of cannabis extracts, such as pain relief, reduction of nausea, and treatment of chronic conditions like epilepsy and multiple sclerosis, have contributed to their increasing adoption in medical treatments.
Secondly, the growing acceptance of cannabis for recreational use is also propelling market growth. The legalization of cannabis in several countries and states has led to a surge in demand for various cannabis-infused products. Consumers are increasingly looking for alternative ways to consume cannabis, such as edibles and concentrates, which has further boosted the demand for cannabis extracts.
Market Key Trends:
One key trend observed in the cannabis extract market is the increasing popularity of CBD (cannabidiol) extracts. CBD is a non-psychoactive compound found in cannabis plants that offers various health benefits without the intoxicating effects of THC (tetrahydrocannabinol). The growing awareness about the potential therapeutic uses of CBD, such as pain management and anxiety relief, has led to a surge in demand for CBD-based products.
An example of this trend can be seen in the increasing availability of CBD-infused skincare products. CBD is known for its anti-inflammatory and antioxidant properties, making it a popular ingredient in skincare products. Several cosmetic companies have launched CBD-infused creams, serums, and lotions, catering to the growing consumer demand for natural and organic skincare solutions.
SWOT Analysis:
– Strength:
The increasing acceptance and legalization of cannabis in several countries are creating a favorable environment for market growth.
– Weakness:
Regulatory restrictions on cannabis use and potential side effects associated with cannabis consumption may hinder market growth.
– Opportunity:
The expanding applications of cannabis extracts in the pharmaceutical and cosmetics industries offer significant growth opportunities.
– Threats:
The saturation of the market due to increased competition and the possibility of stricter regulations on cannabis products pose threats to market growth.
Key Takeaways:
In terms of market size, the global cannabis extract market is expected to witness high growth, exhibiting a CAGR of 17.3% over the forecast period. This growth can be attributed to the increasing demand for medical cannabis products and the rising acceptance of cannabis for recreational use.
From a regional perspective, North America is expected to dominate the market due to the legalization of cannabis for both medical and recreational purposes in several states. Europe is also witnessing significant growth in the cannabis extract market, driven by the growing acceptance of medical cannabis in countries like Germany and the Netherlands.
Key players operating in the global 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 are focusing on product innovation, partnerships, and expansions to strengthen their market presence and meet the growing demand for cannabis extracts.
In conclusion, the global cannabis extract market is poised for significant growth due to the rising demand for medical cannabis and the increasing acceptance of cannabis for recreational use. With favorable regulatory changes and expanding applications in various industries, the market is expected to witness continued expansion in the coming years.
Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals.
