Cannabis Extract Global Market Report 2024

The global cannabis extract market has grown exponentially in recent years. It will grow from $8.57 billion in 2023 to $10.49 billion in 2024 at a compound annual growth rate (CAGR) of 22.5%. The expansion observed in the historical period can be attributed to the emergence of the CBD market, evolving consumer preferences favoring natural products, the legalization of cannabis for recreational use, a diverse range of product offerings, and increased research and development activities. These factors collectively contributed to significant growth during the specified historical timeframe.

The global cannabis extract market is expected to see exponential growth in the next few years. It will grow to $22.26 billion in 2028 at a compound annual growth rate (CAGR) of 20.7%. The anticipated growth in the forecast period can be attributed to the prevalence of health and wellness trends, initiatives aimed at consumer education, the customization of extract products, and the integration of cannabis extracts in beauty and personal care products. Key trends expected in the forecast period include innovations in extraction technologies, the popularity of full-spectrum and broad-spectrum extracts a focus on terpenes (aromatic compounds in cannabis), product standardization, quality assurance measures, and an increase in collaborations and partnerships within the industry. These trends collectively contribute to the projected growth in the specified forecast timeframe.

The cannabinoid market is on an upward trajectory, propelled by the rising prevalence of chronic diseases. Chronic diseases, requiring prolonged medical attention, have prompted the examination of cannabinoids' effectiveness in treating chronic noncancer pain through systematic reviews of randomized controlled trials. According to a McKinsey report, the anticipated 20% rise in the US illness burden through 2040 and the revelation by the Center for Disease Control and Prevention that six in ten Americans live with at least one chronic disease underscore the growing prevalence of chronic diseases. This, in turn, is a significant driver for the growth of the cannabinoid market.

The increase in prevalence of chronic diseases is expected to propel the cannabis extract market. Chronic diseases are illnesses that last a year or longer and require ongoing medical attention. The cannabis extract is effective in the treatment of chronic noncancer pain. For instance, according to the McKinsey report, it is anticipated that the US illness burden will rise by almost 20% through 2040. Furthermore, according to the Center for Disease Control and Prevention, six in ten Americans live with at least one chronic disease. As a result, the increasing prevalence of chronic diseases is driving the cannabis extract market.

The increasing prevalence of cancer is expected to propel the growth of the cannabis extract market going forward. Cancer refers to the condition when a few of the body's cells grow out of control and spread to other bodily regions. Cannabis extract helps treat cancer patients with neuropathy, nausea, pain, vomiting, appetite, and weight loss. Cannabis extract affects cancer progression by stimulating autophagy and affecting the signaling pathways leading to apoptosis. For instance, in April 2022, according to a report on cancer facts and figures by the American Cancer Society, a US-based nonprofit health organization devoted to the eradication of cancer, there were 1.92 million new cases of cancer in the US, compared to 1.89 cases in 2021. Therefore, the increasing prevalence of cancer is driving the growth of the cannabis extract market.

Collaboration is the key trend gaining popularity in the cannabis extract market. Major companies operating in the market are collaborating with each other to sustain in the market. For instance, in January 2023, Freedom Cannabis Inc., a Canada-based cannabis company, and its joint venture partner, Cannabis Tolling Solutions (CTS), a Canada-based provider of cannabis extraction services, announced the completion and full operation of their new cannabis extract processing lab. This lab will provide the joint venture partners with a new revenue stream for creating cannabis extracts. The newly built space uses state-of-the-art hydrocarbon extraction equipment. Initially, the companies will provide zero-additives cannabis extract vape pen-ready goods and full-spectrum cannabis extracts, also referred to as ‘diamonds and sauce’. The CTS team's access to the legal concentrates market is made possible by Freedom Cannabis, and the announcement of the extracts lab's opening expands on their already-existing partnership.

Major companies operating in the cannabis extract market are focused on introducing advanced, innovative products and medicinal extracts to gain a competitive edge in the market. These innovative medicinal cannabis extract formulas refer to new and advanced methods of extracting and formulating cannabis extracts for medical purposes. For instance, in July 2021, Kanabo Group PLC, a UK-based medical cannabis research and development company, launched VapePod, the vaporizer, and its new cannabis extract formula for metered dosing. With each inhalation, the medical-grade handheld vaporizer VapePod delivers a precise and accurate microdose of cannabis extract. Patients will benefit from this because extracts may be inhaled more quickly and have a higher bioavailability than tinctures and oils. Additionally, it will provide more accurate patient data and give clinicians the confidence to prescribe and monitor a patient's dosage. The medicinal extract formula contains 70% THC and 15% minor cannabinoids and terpenes. It is based on the Israeli medical cannabis pharmacopoeia and is recommended for the treatment of pain management.

In January 2022, BevCanna, a Canada-based comprehensive health and wellness beverage and natural products company acquired Embark Health Inc. for an undisclosed amount. With this acquisition, BevCanna will diversify its portfolio of distinctive brands, contribute important intellectual property, and expand its portfolio of adult-use cannabis products. Embark is a Canada-based company that manufactures a variety of topicals, edibles, liquid and powder beverage mixes, and cannabis concentrates.

The cannabis extract market is witnessing significant growth, primarily driven by the increasing prevalence of chronic diseases. Chronic diseases, requiring ongoing medical attention and lasting a year or longer, have prompted the exploration of cannabis extract's effectiveness, particularly in treating chronic noncancer pain. The anticipated 20% rise in the US illness burden through 2040, as highlighted by a McKinsey report, and the revelation by the Center for Disease Control and Prevention that six in ten Americans live with at least one chronic disease, underscore the growing demand for cannabis extract in managing chronic conditions. This increasing prevalence of chronic diseases stands as a major driver for the growth of the cannabis extract market. Moreover, the rising prevalence of cancer is further contributing to the expansion of the cannabis extract market. Cannabis extract, known for its therapeutic potential, is utilized in the treatment of cancer patients to alleviate symptoms such as neuropathy, nausea, pain, vomiting, appetite loss, and weight loss. The extract influences cancer progression by stimulating autophagy and impacting signaling pathways leading to apoptosis. As per a report on cancer facts and figures by the American Cancer Society, there were 1.92 million new cancer cases in the US in 2022, compared to 1.89 million in 2021. The increasing prevalence of cancer is a significant factor driving the growth of the cannabis extract market.

The primary types of cannabis extracts are oils and tinctures. In the cannabis extract market, oils refer to an oleoresin extracted from cannabis plants, including hemp and marijuana. The main extract types include full-spectrum extracts and cannabis isolates sourced from both hemp and marijuana. These cannabis extracts are distributed through hospital pharmacies, retail pharmacies, and online pharmacies for use in the textile, cosmetic, pharmaceutical, and paper industries.

This report provides cannabis extract market statistics, including cannabis extract industry global market size, regional shares, competitors with a cannabis extract market share, detailed cannabis extract market segments, market trends and opportunities, and any further data you may need to thrive in the cannabis extract industry. This cannabis extract market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Collaboration emerges as a key trend in the cannabis extract market, with major companies forming strategic partnerships to sustain and enhance their market presence. For instance, Freedom Cannabis Inc., a Canada-based cannabis company, and Cannabis Tolling Solutions (CTS), a provider of cannabis extraction services, completed and fully operationalized a new cannabis extract processing lab through their joint venture. This collaboration allows the companies to generate a new revenue stream by producing cannabis extracts, including vape pen-ready goods and full-spectrum cannabis extracts.

Innovation remains a focal point for major companies in the cannabis extract market, as they introduce advanced and medicinal extracts to gain a competitive edge. Kanabo Group PLC, a UK-based medical cannabis research and development company, launched VapePod, a handheld vaporizer, along with new cannabis extract formula for metered dosing. This innovative formula, containing 70% THC and 15% minor cannabinoids and terpenes, provides a precise and accurate microdose with each inhalation, offering patients a quicker and more bioavailable method of consumption for medical purposes.

Strategic acquisitions are also shaping the landscape of the cannabis extract market. In January 2022, BevCanna, a Canada-based health and wellness beverage company, acquired Embark Health Inc., adding diversity to its brand portfolio, incorporating valuable intellectual property, and expanding its range of adult-use cannabis products. Embark Health is known for manufacturing various cannabis products, including topicals, edibles, liquid and powder beverage mixes, and cannabis concentrates. This acquisition strengthens BevCanna's position in the cannabis extract market and broadens its product offerings.

Major companies operating in the cannabis extract market report are Canopy Growth Corporation, Tikun Olam, Aurora Cannabis Inc., Aphria Inc., Tilray Inc., Mylan N.V., Alkem Labs, GW Pharmaceuticals PLC, The Cronos Group, The Supreme Cannabis Company Inc., Elixinol Global Limited, Westleaf Cannabis Inc., Medipharm Labs Corp., The Valens Company Inc., Curaleaf Holdings Inc., Innovative Ind Props, Green Thumb Industries, Verano Holdings, Trulieve Cannabis Corp., Cresco Labs Inc., Delta 9 Cannabis Inc., BZAM Ltd., Sundial Growers Inc., Decibel Cannabis Company, Auxly Cannabis Group, Red White & Bloom Brands, Jazz Pharmaceuticals PLC, Organigram Inc., MedReleaf Corp., and Terrascend Corp.

North America was the largest region in the cannabis extract market in 2023. The regions covered in the cannabis extract market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the cannabis extract market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The cannabis extract market consists of sales shatter, wax and hash. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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