by Market Overview:
The 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 (2022-2030). Cannabis extracts are derived from the cannabis plant and are used for various purposes such as medical treatment, recreational use, and industrial applications. The market is driven by the increasing legalization of cannabis for medical and recreational purposes in various countries. The growing acceptance of cannabis extracts for treating chronic pain, epilepsy, multiple sclerosis, and other ailments is also contributing to market growth. Additionally, the expanding research and development activities in the pharmaceutical industry to explore the potential therapeutic uses of cannabis extracts are further fueling market expansion.
Market Dynamics:
The cannabis extract market is driven by several factors. Firstly, the increasing legalization of cannabis in North America and Europe is creating a favorable environment for market growth. The growing acceptance of cannabis for medical and recreational purposes is boosting the demand for cannabis extracts. Additionally, the expanding use of cannabis extracts in various industries such as pharmaceuticals, food and beverages, cosmetics, and personal care products is driving market expansion. Furthermore, the rising awareness regarding the potential health benefits of cannabis extracts, coupled with the growing investment in research and development activities, is anticipated to propel market growth in the coming years.
Market key trends:
The cannabis extract market is experiencing a significant growth trend due to the increasing acceptance and legalization of cannabis for medical and recreational purposes in various countries. This trend is driven by the growing awareness about the potential health benefits of cannabis extracts, such as pain relief, anxiety management, and treatment of chronic conditions. In addition, the expanding applications of cannabis extracts in various industries, including pharmaceuticals, food and beverages, and personal care, are further fueling the market growth. Moreover, the advancements in extraction technologies and the development of innovative cannabis-based products are expected to drive the demand for cannabis extracts in the coming years.
SWOT Analysis:
Strength: The cannabis extract market is backed by the increasing legalization of cannabis for medical and recreational use, creating a favorable regulatory environment for the market players. This allows them to enter new markets and expand their product offerings.
Weakness: The cannabis industry still faces certain legal and regulatory challenges in many countries, limiting the market potential. Additionally, the lack of standardized dosing and quality control measures for cannabis extracts poses a challenge for market growth.
Opportunity: The growing acceptance of cannabis extracts for medical purposes presents a significant opportunity for market expansion. Additionally, the potential legalization of cannabis in new countries and the development of novel extraction methods can further drive market growth.
Threats: The presence of a black market for cannabis products and the persistent negative perception of cannabis in some regions can pose a threat to the legal cannabis extract market. Additionally, the competition from substitute products and the risk of overproduction leading to price volatility are potential threats to the market.
Key Takeaways:
The global cannabis extract market is expected to witness high growth, exhibiting a CAGR of 17.3% over the forecast period of 2022-2030. This growth is primarily driven by the increasing acceptance and legalization of cannabis, as well as the growing awareness about the health benefits of cannabis extracts. North America is expected to dominate the market, accounting for the largest market share, fueled by the legalization of cannabis for recreational use in several states of the US and the presence of key market players in the region. The key players operating in the cannabis extract 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. These players are actively involved in mergers and acquisitions, product development, and partnerships to strengthen their market position and expand their product portfolios.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
