Cannabis Extract Market Size, Industry Trends Report | 2030

Report Description

The global cannabis extract market size was valued USD 7.9 billion in 2020 and is projected to reach USD 31.5 billion by 2028, expanding at a CAGR of 16.6% during the forecast period, 2021–2028. The growth of the market is attributed to the growing use of medical marijuana to treat chronic diseases such as arthritis, Alzheimer's, and cancer, as well as mental disorders such as depression, anxiety, and epilepsy.

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Cannabis is typically derived from Indian hemp plants such as Cannabis sativa and Cannabis indica. THC (tetrahydrocannabinol) is the primary active chemical in cannabis. Cannabis extract refers to the extracts derived from cannabis concentrates. Cannabis concentrates can be found in a variety of forms, such as oils, phoenix tears, shatter, wax, hash, and even vaporizers. They have a high cannabinoid and terpene concentration. As an antidepressant agent, cannabis has a wide range of applications in the healthcare and pharmaceutical industries. As a solvent, grain or isopropyl alcohol is used to extract cannabis.

Cannabis oil and tinctures are commonly used to treat a variety of conditions such as psychological disorders, nausea, and cancer. In terms of legality, extract laws are quite lenient due to the non-psychoactive properties of cannabidiol (CBD) oils when compared to other products, such as buds and resins.

Rising prevalence of cancer is expected to drive the cannabis extract market during the forecast period. According to the World Health Organization (WHO), cancer was the second leading cause of death worldwide in 2015, accounting for approximately 8.8 million deaths.

Market Trends, Drivers, Restraints, and Opportunities

• The ease of use in the form of vapor or gummies, as well as the slowly fading social stigma associated with smoking cannabis buds are expected to help the market to gain in the coming years.
• Increasing marijuana use for medical and recreational purposes is expected to boost the market growth during the forecast period.
• Growing disease burden of chronic pain is expected to drive the medical marijuana market due to increasing demand for therapies related to pain management.
• Rising legalization of medical cannabis in various countries is anticipated to propel the market growth during the forecast period.
• Taxation levied by government state bodies to generate significant revenue is projected to create immense opportunities for the market players.

Scope of the Report

The report on the global cannabis extract market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Cannabis Extract Market Segment Insights

Tinctures segment is expected to grow at a significant pace

Based on products, the market is bifurcated into tinctures and oils. The oils segment is expected to account for a key market share during the forecast period. Increasing medical applications of the product is driving the segment growth. However, the tincture segment is anticipated to expand at a rapid pace owing to the changing healthcare practitioners' perspectives and availability of safer ingestion techniques such as oral intake or in the form of beverages or gummies. It is critical to track the accurate consumption of prescribed dosages containing THC and CBD. As a result, the preference for cannabis oils and extracts is relatively higher when compared to smoked cannabis.

Marijuana tinctures are prepared by dissolving the drug in alcohol and are consumed sublingually. Tinctures can begin working its function in 15 minutes, which is faster than oils, which can take up to 45 minutes to begin working. As a result, demand for tinctures is expected to rise significantly during the forecast period. Majority of producers have started expanding their portfolios in extracts, due to significant demand in end-use industries, such as pharmaceuticals, nutraceuticals, skincare, beverages, and edibles. These products are marketed with specific information on TCH and CBD content or sole CBD content for medical purposes.

Full spectrum segment is projected to account a key market share

On the basis of extract types, the cannabis extract market is bifurcated into full spectrum and isolates. The full spectrum segment is expected to account for a significant market share during the forecast period due to rising pressure of the medical community on the legal bodies to legalize the full spectrum products. In 2019, full spectrum cannabis concentrates dominated the market, in terms of revenue. This segment is expected to expand at a CAGR of 20% during the forecast period. Full spectrum extract contains the entire range of cannabinoids that can be extracted from a marijuana plant. Apart from CBD, over 100 cannabinoids are present in their natural forms., Full spectrum extracts produce an entourage effect, which is a collaborative relationship between terpenes and cannabinoids that enhances the healing properties of the cannabinoid.

Cannabis isolates, which are obtained through isolation and extraction, are the most reliable forms of their respective cannabinoids. They provide fewer health benefits than full spectrum cannabis extracts. Furthermore, these isolates retain a variety of advantages, which has resulted in their increasing adoption over the time. Isolates have little to negligible THC content. Their purest form tests negative for THC and has no psychoactive effect.

Asia Pacific is anticipated to dominate the market

On the basis of regions, the cannabis extract market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is anticipated to expand at a robust CAGR during the forecast period. The regional market growth is attributed to the increasing research activity, presence of well-developed ecosystem, and pro-business government policies.

In 2019, North America cannabis market was valued USD 6.4 billion. Increasing product adoption and marijuana legalization in the region are driving the market growth in the region. A decade ago, legalization was supported by only 32% of the general population. Medical marijuana was legalized in 30 states in the US in 2018, including Guam, Puerto Rico, and Columbia. According to recent data, approximately 57% of adults in the US support the use of marijuana for medical purposes, such as treatment of pain, inflammation, and cancer. As a result, factors such as cannabis legalization and rising product adoption for medicinal purposes are driving the regional market growth.

In 2019, Europe accounted for a major revenue share, followed by North America. Italy is one of the major consumer of cannabis oil and concentrates. However, stringent rules and regulations on sale and cultivation in most of the Europe-based countries may limit overall growth in Europe Australia, Germany, Poland, Colombia, Uruguay, and Israel are also promising marijuana markets. Increasing R&D investments is expected to boost the cannabis extract market during the forecast period.

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