July 14, 2024
Cannabis Extract Market

Global Cannabis Extract Market Is Estimated To Witness High Growth Owing To Increasing Legalization And Growing Awareness

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 a range of products derived from cannabis plants, including oils, tinctures, and concentrates. These products are known for their medicinal and therapeutic properties and are increasingly being used for the treatment of various medical conditions. They are also gaining popularity among recreational users due to their relaxation and mood-enhancing effects.

Market Dynamics

The market for cannabis extracts is being driven by two main factors. Firstly, the legalization of cannabis for medical and recreational use in several countries and states has significantly increased the availability and accessibility of cannabis products. This has led to a growing consumer base and increased demand for cannabis extracts.

Secondly, there is a growing awareness among consumers about the potential health benefits of cannabis extracts. These extracts are known to have anti-inflammatory, analgesic, and anti-anxiety properties, among others. As consumers become more health-conscious and seek natural alternatives to traditional medications, the demand for cannabis extracts is expected to rise.

For example, in the United States, several states have legalized the use of medical cannabis, leading to a surge in demand for cannabis extracts. According to the National Conference of State Legislatures, as of October 2021, 37 states, along with the District of Columbia, have legalized medical cannabis. This increasing acceptance and legalization is expected to drive the growth of the market.

Segment Analysis

In terms of segmentation, the cannabis extracts market can be divided into different types of extracts, such as oils, tinctures, and concentrates. Among these, the oils segment is dominating the market, as they are versatile and can be used in various ways, such as in vaporizers, edibles, and topicals. Oils are also preferred by medical users for its ease of use and precise dosing.

PEST Analysis

Political:

The political landscape is rapidly changing, with an increasing number of countries and states legalizing the use of cannabis for medical and recreational purposes. This is creating a favorable environment for the growth of the cannabis extracts market.

Economic:

The economic impact of the cannabis industry is significant, with the potential to generate billions of dollars in tax revenue and job creation. This has led to increased support for the legalization and regulation of the industry in many countries.

Social:

There is a growing acceptance and normalization of cannabis use in society. As more research emerges about the medical benefits of cannabis, social attitudes towards the plant are shifting, leading to increased demand for cannabis extracts.

Technological:

The advancement in extraction technologies has significantly improved the efficiency and quality of cannabis extracts. Innovations such as supercritical CO2 extraction and solventless extraction methods have contributed to the growth of the market.

Key Takeaways

– The global cannabis extracts market is expected to witness high growth, exhibiting a CAGR of 17.3% over the forecast period, due to increasing legalization and growing awareness.

– North America is expected to be the fastest-growing and dominating region in the market, with the United States leading the way in terms of market share and revenue.

– Key players operating in the global cannabis extracts 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.

In conclusion, the global cannabis extracts market is poised for significant growth, driven by the increasing legalization and growing awareness of the potential health benefits of cannabis extracts. As more countries and states legalize cannabis, the market is expected to expand further, creating opportunities for both existing and new players in the industry.