Cannabis extract market is estimated to be valued at USD 12.38 Bn in 2024 and is expected to exhibit a CAGR of 17.4% over the forecast period (2024-2031). The global cannabis extract market is estimated to witness high growth owing to high therapeutic applications and increasing demand for legalized marijuana. Furthermore, rising adoption of cannabis extracts in pharmaceutical applications is also anticipated to boost market growth.
Market Dynamics:
The growth of the cannabis extract market is primarily driven by the increasing demand for legalized marijuana and a surge in therapeutic applications of cannabis extracts. According to recent studies, over 90% of Americans now support the legal use of marijuana for medical purposes. This has encouraged several states to allow the medical use of marijuana, thereby boosting the demand for cannabis extracts. Secondly, the pharmaceutical industry has shown immense interest in cannabis extracts due to their therapeutic benefits. Cannabis extracts have shown potential in treating several health issues such as chronic pain, neurological disorders, cancer, and mental illnesses. This is expected to significantly propel the pharmaceutical application of cannabis extracts over the forecast period.
Growing Medical Cannabis Acceptance is Driving the Market
The acceptance of medical cannabis is growing significantly around the world as more clinical research demonstrates its effectiveness in treating various medical conditions such as chronic pain, epilepsy, Parkinson's disease, and mental illnesses. Many countries like Canada, Germany, Italy, Australia, and several U.S. states have legalized medical cannabis which has increased the demand for cannabis extracts that can be easily incorporated into drugs, supplements, and topical products. This growing acceptance of cannabis for medical use is a major driver boosting the cannabis extract market.
Rising Interest in CBD Products is Fueling Market Growth
Cannabidiol or CBD, one of the main extracts of cannabis, is garnering huge interest from both pharmaceutical companies and consumers for its potential therapeutic benefits without the psychoactive effects of THC. CBD is showing promise for treating conditions like anxiety, depression, acne, and epilepsy. Many CBD products in the form of oils, edibles, pills, and creams are becoming available both online and in retail stores. The rising popularity of CBD-infused products is propelling significant growth in the cannabis extract market.
Strict Regulations on Cannabis Cultivation and Production
Though regulations are easing in some parts of the world, cannabis cultivation and production are still tightly regulated in many countries and states. Obtaining licenses, meeting safety and purity standards, and other compliance issues make it difficult for small businesses to enter the market. Strict regulations increase operational costs for companies and create supply hurdles, restraining broader market expansion.
Lingering Social Stigma Around Cannabis Usage
Despite increasing acceptance, cannabis usage still faces social stigma in conservative societies. The perception of cannabis as a gateway drug prevents some people from using cannabis extracts therapeutically. Establishing cannabis as a legitimate medical solution and changing public opinion remains challenging due to decades of anti-cannabis propaganda. The social stigma, to some extent, discourages demand growth in the cannabis extract industry.
Potential in Developing New Delivery Formats
Research is exploring different delivery formats for cannabis extracts to improve bioavailability, onset of action, and stability. Delivery methods under investigation include transdermal patches, sublingual strips, nano-particles, encapsulation in liposomes, and more. Successful innovation in delivery systems would unlock new opportunities in segments like pharmaceuticals, functional foods, and cosmetic products using cannabis extracts.
Scope for Export Growth in Expanding Markets
While domestic markets are growing, many Canadian licensed producers are eyeing international expansion into emerging medical cannabis markets in Europe, Latin America, Asia, and Africa. As more countries legalize medical cannabis, there will be huge export opportunities for Canadian companies to tap the global demand for high-quality cannabis extracts. Strategic partnerships and M&A could help Canadian businesses scale up their global footprint.
Link: https://www.coherentmarketinsights.com/market-insight/cannabis-extract-market-4927
Key Development
- On March 14, 2024, Tilray Brands Inc., a global leader in the cannabis industry, announced that they had launched Tilray Oral Solution THC 5 CBD 20 in Potugal
- In April, 2022, Manitoba Harvest, a wholly-owned subsidiary of Tilray, launched Hemp+ Matcha and Hemp+ Supergreens powders at 300 plus Whole Foods Market locations nationwide in U.S.
- In February 2022, Canopy Growth Corp, a cannabis company announced the extension of the Ace Valley brand portfolio, with the launch of two new beverages Daylight and Moonwave, which are occasion-based ready-to-drink THC and CBD-infused drinks.
Key Players: 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.
