by The cannabis extract market has seen significant growth in recent years due to increasing legalization of medicinal cannabis in various countries. Cannabis extracts contain high concentrations of cannabinoids like THC and CBD, and are used to produce medications, supplements and other consumer products. Cannabis extracts provide consistent cannabinoid content and allow for precision dosing. The growing acceptance of cannabis-based therapies for conditions like chronic pain, epilepsy, and mental health issues has fueled the demand for cannabis extracts.
The global Cannabis Extract Market is estimated to be valued at US$ 10704.56 Mn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the cannabis extract market is the increasing demand for CBD extracts. CBD is a non-psychoactive compound found in cannabis and it is known for its therapeutic benefits without intoxication. CBD extracts are used in pain relief creams, supplements, beverages and other consumer products. There is growing research about the anti-inflammatory and neuroprotective properties of CBD which is driving the interest in CBD extracts. Innovations in extraction technologies are also a key trend with new techniques like supercritical CO2 extraction providing cleaner, safer extracts and allowing for production at large scale.
Porter’s Analysis
Threat of new entrants: Low barriers to entry allows new players to enter the market easily. However, established players have recognized brands and distribution channels.
Bargaining power of buyers: Large buyers can negotiate lower prices due to bulk purchases. However, limited product availability increases their dependence on few suppliers.
Bargaining power of suppliers: A small number of suppliers control the supply of cannabis and extraction equipment. This gives them a stronger position in price negotiations.
Threat of new substitutes: Other alternative medicine and wellness products pose a threat. However, cannabis extracts have fewer side effects increasing their demand.
Competitive rivalry: The market is growing rapidly attracting many new entrants. Companies compete based on product quality, consistency, convenience and pricing.
Key Takeaways
The Global Cannabis Extract Market Size is expected to witness high growth. Rising product adoption for medical as well as recreational purposes is driving the market. The global Cannabis Extract Market is estimated to be valued at US$ 10704.56 Mn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030.
North America holds the largest share due to legal cannabis cultivation in Canada and growing acceptance in the US. Colorado, Washington and California are major markets in the US. Europe isalso expected to offer lucrative opportunities with favorable regulations in countries like Germany, Italy, UK and Spain.
Key players operating in the Cannabis Extract Market are Canopy Growth Corporation, Aurora Cannabis Inc., Tikun Olam, Cannabis Science Inc., Aphria Inc., Maricann Group Inc., Tilray Inc., VIVO Cannabis Inc., Medical Marijuana, Inc., and Cronos Group Inc. Players compete on the basis of product quality, consistency, purity, price and brand awareness.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
