The global market for Cannabis Extract was estimated at US$17.7 Billion in 2023 and is projected to reach US$48.7 Billion by 2030, growing at a CAGR of 15.5% from 2023 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.
The growing acceptance and legalization of cannabis for both medical and recreational use in various regions have significantly driven the demand for cannabis extracts. As more consumers seek natural alternatives to traditional pharmaceutical treatments, cannabis extracts provide a plant-based solution for health and wellness needs. Moreover, the ability to produce extracts with varying levels of THC and CBD allows manufacturers to cater to diverse consumer preferences - ranging from those seeking non-psychoactive therapeutic benefits to recreational users interested in THC-dominant products. This versatility has contributed to cannabis extracts becoming a major segment in the broader cannabis market, appealing to consumers with varying needs and lifestyles.
Innovations in nanotechnology are also influencing the market by improving the bioavailability of cannabis extracts. By reducing cannabinoids to nano-sized particles, manufacturers can create water-soluble extracts that are more easily absorbed by the body, leading to faster onset and more predictable effects. This technology is particularly important in the development of cannabis-infused beverages and edibles, where consistent dosing and rapid absorption are critical for consumer satisfaction. These advancements not only increase the efficacy of cannabis products but also enable manufacturers to diversify their product offerings, meeting the needs of both recreational and medical users more effectively.
Additionally, there is a growing trend toward premium and organic cannabis products, as consumers become more discerning about the quality and safety of the products they use. Many consumers are now looking for organic, non-GMO, and pesticide-free cannabis extracts, which has led to the emergence of niche markets catering to high-end and health-conscious consumers. In the recreational sector, consumer preferences for potent, high-THC extracts such as concentrates and vape oils are also driving market growth. As cannabis becomes more mainstream, consumers are exploring new product formats and delivery methods, further expanding the market for cannabis extracts.
Another major driver is the growing body of scientific research supporting the health benefits of cannabis extracts. Studies demonstrating the efficacy of CBD and THC in managing conditions such as epilepsy, chronic pain, and anxiety are encouraging healthcare providers and consumers to explore cannabis-based treatments. The rise of medical cannabis programs, where patients can access high-quality extracts tailored to their specific conditions, is expanding the medical use of cannabis extracts. In addition, advancements in extraction technologies, such as CO2 extraction and nanotechnology, are enhancing the quality, safety, and effectiveness of cannabis extracts, further driving consumer confidence in these products. The increasing variety of product formats - from tinctures and edibles to vape oils and topicals - allows manufacturers to meet diverse consumer needs, creating new opportunities for growth in both the recreational and medical sectors. As the cannabis industry continues to evolve, the cannabis extract market is set to experience robust expansion, driven by innovation, legalization, and changing consumer behaviors.
Global Cannabis Extract Market - Key Trends & Drivers Summarized
Why Are Cannabis Extracts Gaining Popularity Across Multiple Industries?
Cannabis extracts are becoming increasingly popular due to their wide range of therapeutic and recreational applications across multiple industries, including pharmaceuticals, wellness, food and beverage, and cosmetics. Extracts derived from cannabis plants, such as oils, tinctures, capsules, and concentrates, are valued for their potency and versatility. These extracts contain cannabinoids like cannabidiol (CBD) and tetrahydrocannabinol (THC), which can be used to address various health conditions such as chronic pain, anxiety, inflammation, and insomnia. Cannabis extracts offer a more concentrated and controlled form of cannabinoids, allowing consumers and healthcare professionals to administer precise doses and achieve targeted therapeutic effects.The growing acceptance and legalization of cannabis for both medical and recreational use in various regions have significantly driven the demand for cannabis extracts. As more consumers seek natural alternatives to traditional pharmaceutical treatments, cannabis extracts provide a plant-based solution for health and wellness needs. Moreover, the ability to produce extracts with varying levels of THC and CBD allows manufacturers to cater to diverse consumer preferences - ranging from those seeking non-psychoactive therapeutic benefits to recreational users interested in THC-dominant products. This versatility has contributed to cannabis extracts becoming a major segment in the broader cannabis market, appealing to consumers with varying needs and lifestyles.
How Are Technological Innovations Shaping the Cannabis Extract Market?
Technological advancements in extraction methods are transforming the cannabis extract market by improving the efficiency, quality, and safety of extract production. Traditional methods of extraction, such as solvent-based techniques using butane or ethanol, have evolved with the introduction of more advanced technologies like CO2 extraction. CO2 extraction is now considered the gold standard in the industry due to its ability to produce high-purity extracts without harmful solvents. This method preserves the full spectrum of cannabinoids, terpenes, and other beneficial compounds found in the cannabis plant, resulting in a more potent and therapeutic product. Additionally, CO2 extraction is environmentally friendly, further aligning with the growing consumer demand for sustainable products.Innovations in nanotechnology are also influencing the market by improving the bioavailability of cannabis extracts. By reducing cannabinoids to nano-sized particles, manufacturers can create water-soluble extracts that are more easily absorbed by the body, leading to faster onset and more predictable effects. This technology is particularly important in the development of cannabis-infused beverages and edibles, where consistent dosing and rapid absorption are critical for consumer satisfaction. These advancements not only increase the efficacy of cannabis products but also enable manufacturers to diversify their product offerings, meeting the needs of both recreational and medical users more effectively.
What Role Is Consumer Behavior Playing in the Cannabis Extract Market?
Consumer behavior is significantly shaping the cannabis extract market as consumers increasingly seek natural, plant-based products for health, wellness, and recreational use. The growing interest in wellness and alternative treatments has led to a surge in demand for CBD-rich extracts, which are widely recognized for their non-psychoactive, therapeutic benefits. Consumers are turning to cannabis extracts for relief from conditions such as anxiety, chronic pain, and sleep disorders, often seeking products that are non-addictive and have fewer side effects than traditional medications. This shift in consumer preferences is driving manufacturers to develop a wide range of cannabis-based wellness products, including tinctures, topical creams, edibles, and even skincare products infused with cannabis extracts.Additionally, there is a growing trend toward premium and organic cannabis products, as consumers become more discerning about the quality and safety of the products they use. Many consumers are now looking for organic, non-GMO, and pesticide-free cannabis extracts, which has led to the emergence of niche markets catering to high-end and health-conscious consumers. In the recreational sector, consumer preferences for potent, high-THC extracts such as concentrates and vape oils are also driving market growth. As cannabis becomes more mainstream, consumers are exploring new product formats and delivery methods, further expanding the market for cannabis extracts.
Growth in the Cannabis Extract Market Is Driven by Several Factors
The growth in the cannabis extract market is driven by several factors, including the expanding legalization of cannabis, advancements in extraction technology, and increasing consumer awareness of the therapeutic benefits of cannabinoids. The ongoing legalization of cannabis for both medical and recreational use across regions such as North America, Europe, and parts of Asia has opened up new markets and significantly boosted demand for cannabis extracts. As more countries relax their cannabis regulations, the market for extracts is expected to continue its upward trajectory, fueled by increasing accessibility and acceptance of cannabis-based products.Another major driver is the growing body of scientific research supporting the health benefits of cannabis extracts. Studies demonstrating the efficacy of CBD and THC in managing conditions such as epilepsy, chronic pain, and anxiety are encouraging healthcare providers and consumers to explore cannabis-based treatments. The rise of medical cannabis programs, where patients can access high-quality extracts tailored to their specific conditions, is expanding the medical use of cannabis extracts. In addition, advancements in extraction technologies, such as CO2 extraction and nanotechnology, are enhancing the quality, safety, and effectiveness of cannabis extracts, further driving consumer confidence in these products. The increasing variety of product formats - from tinctures and edibles to vape oils and topicals - allows manufacturers to meet diverse consumer needs, creating new opportunities for growth in both the recreational and medical sectors. As the cannabis industry continues to evolve, the cannabis extract market is set to experience robust expansion, driven by innovation, legalization, and changing consumer behaviors.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Oils segment, which is expected to reach US$34.1 Billion by 2030 with a CAGR of a 16.2%. The Tinctures segment is also set to grow at 14.2% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, estimated at $4.5 Billion in 2023, and China, forecasted to grow at an impressive 20.3% CAGR to reach $12.7 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2023 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of major players such as ABcann Medicinals, Inc., Aphria, Inc., Aurora Cannabis, and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Key Questions Answered:
- How is the Global Cannabis Extract Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Cannabis Extract Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Cannabis Extract Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Select Competitors (Total 47 Featured):
- ABcann Medicinals, Inc.
- Aphria, Inc.
- Aurora Cannabis
- Canopy Growth Corporation
- Culorado Cannabis Company
- Dabble Extracts
- GW Pharmaceuticals, plc
- Kynd Cannabis Company
- Maricann Group, Inc.
- Organa Brands
- Organigram Holding, Inc.
- Peridot Labs
- The Chronos Group
- Tikun Olam, Ltd.
- Tilray
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIII. MARKET ANALYSISSOUTH KOREAREST OF ASIA-PACIFICARGENTINABRAZILMEXICOREST OF LATIN AMERICAIRANISRAELSAUDI ARABIAUNITED ARAB EMIRATESREST OF MIDDLE EASTIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
UNITED STATES
CANADA
JAPAN
CHINA
EUROPE
FRANCE
GERMANY
ITALY
UNITED KINGDOM
SPAIN
RUSSIA
REST OF EUROPE
ASIA-PACIFIC
AUSTRALIA
INDIA
LATIN AMERICA
MIDDLE EAST
AFRICA
Companies Mentioned
- ABcann Medicinals, Inc.
- Aphria, Inc.
- Aurora Cannabis
- Canopy Growth Corporation
- Culorado Cannabis Company
- Dabble Extracts
- GW Pharmaceuticals, plc
- Kynd Cannabis Company
- Maricann Group, Inc.
- Organa Brands
- Organigram Holding, Inc.
- Peridot Labs
- The Chronos Group
- Tikun Olam, Ltd.
- Tilray
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 96 |
| Published | November 2024 |
| Forecast Period | 2023 - 2030 |
| Estimated Market Value ( USD | $ 17.7 Billion |
| Forecasted Market Value ( USD | $ 48.7 Billion |
| Compound Annual Growth Rate | 15.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 15 |
