Cannabis Extract Market Report 2025

The cannabis extract market size has grown exponentially in recent years. It will grow from $10.38 billion in 2024 to $12.7 billion in 2025 at a compound annual growth rate (CAGR) of 22.3%. The growth in the historic period can be attributed to emergence of CBD market, consumer trends toward natural products, cannabis legalization for recreational use, diverse product offerings, research and development.

The cannabis extract market size is expected to see exponential growth in the next few years. It will grow to $26.47 billion in 2029 at a compound annual growth rate (CAGR) of 20.1%. The growth in the forecast period can be attributed to health and wellness trends, consumer education initiatives, customization of extract products, integration in beauty and personal care. Major trends in the forecast period include innovation in extraction technologies, full-spectrum and broad-spectrum extracts, focus on terpenes, product standardization and quality assurance, collaborations and partnerships.

The rising prevalence of chronic diseases is expected to propel the growth of the cannabis extract market. Chronic diseases, which are long-term illnesses requiring continuous medical care, can be effectively managed with cannabis extracts, particularly for chronic non-cancer pain. For instance, in September 2023, the World Health Organization (WHO) reported that 41 million deaths, or 74% of all global deaths, were attributed to non-communicable diseases (NCDs) or chronic conditions annually. As the burden of chronic diseases continues to increase, the demand for cannabis extracts as a therapeutic option is also growing, driving market expansion.

The increasing prevalence of cancer is expected to drive the growth of the cannabis extract market in the coming years. Cancer occurs when some of the body's cells grow uncontrollably and spread to other regions. Cannabis extracts are used to alleviate symptoms in cancer patients, such as neuropathy, nausea, pain, vomiting, appetite loss, and weight loss. Additionally, cannabis extracts may influence cancer progression by stimulating autophagy and affecting the signaling pathways leading to apoptosis (programmed cell death). For instance, in May 2024, the National Institutes of Health (NIH) projected that 2,001,140 new cancer cases would be diagnosed in the U.S., with 611,720 deaths from the disease expected. As cancer cases continue to rise, the demand for cannabis extracts for therapeutic use is increasing, contributing to the market's growth.

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 in the cannabis extract market are focusing on developing innovative solutions, such as medical cannabis oil products, to meet growing demand in both therapeutic and wellness sectors. Medical cannabis oil products are derived from the cannabis plant and contain active cannabinoids like cannabidiol (CBD) and tetrahydrocannabinol (THC), which are used for therapeutic purposes. For instance, in May 2024, Stenocare A/S, a Denmark-based pharmaceutical company, launched *Astrum 10-10*, a next-generation medical cannabis oil product. This product, designed to set new pharmaceutical-grade standards for efficacy and potency, received regulatory approval for sales in Australia and Germany. The launch is part of Stenocare’s broader strategy to improve patient access to high-quality prescription-based medical cannabis. The first sales of *Astrum 10-10* are anticipated in Q4 2024, highlighting Stenocare's commitment to product innovation and market expansion in the evolving medical cannabis landscape.

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.

Major companies operating in the cannabis extract market are Canopy Growth Corporation, Tikun Olam, Aurora Cannabis Inc., Aphria Inc., Tilray Inc., 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., Terrascend Corp.

North America was the largest region in the cannabis extract market in 2024. 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.

Cannabis extract is a compound derived from the cannabis plant, specifically known as cannabidiol (CBD). Typically available in oil form, it is incorporated by manufacturers into various products like creams and lotions, with people using CBD extract as a treatment for a variety of ailments.

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.

The cannabis extract market research report is one of a series of new reports that 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.

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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