Cannabis Extract Market Size & Share, By Product Type (Tinctures, Oil), Extract Type (Full Spectrum, Isolates), Regional Forecast, Industry Players, Growth Statistics Report 2024-2035

Market Outlook:

Cannabis Extract Market size exceeded USD 7.32 Billion in 2023 and is estimated to cross USD 48.72 Billion by 2035, growing at over 27.74% CAGR during 2024 to 2035.

• Base Year Value (2023): USD 7.32 Billion
• CAGR (2024-2035): 27.74%
• Forecast Year Value (2035): USD 48.72 Billion
• Historical Data Period: 2019-2022
• Largest Region: North America
• Forecast Period: 2024-2035

Market Dynamics:

The cannabis extract market is experiencing significant growth due to the increasing legalization of cannabis across various regions, growing consumer awareness about the benefits of cannabis extracts, and the rising demand for cannabis-infused products. Additionally, the expanding use of cannabis extracts in the pharmaceutical and wellness industries is further fueling the market growth.

Growth Drivers & Opportunity:

One of the key growth drivers for the cannabis extract market is the increasing legalization of cannabis for medicinal and recreational purposes. This has led to a surge in the production and consumption of cannabis extracts, as they are widely used in the formulation of various pharmaceutical products and wellness supplements. Moreover, the growing acceptance of cannabis extracts for their therapeutic properties, such as pain management, stress relief, and anxiety treatment, is creating lucrative opportunities for market players.

Furthermore, the rising demand for cannabis-infused products, such as edibles, beverages, and topicals, is contributing to the market growth. Consumers are increasingly opting for these products due to their convenience, discreet consumption, and longer-lasting effects. This trend has prompted manufacturers to innovate and introduce a wide range of cannabis-infused products, thereby expanding the market potential.

Report Scope

Report Coverage	Details
Segments Covered	By Product Type, Extract Type
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Canopy Growth, The Cronos Group, Aurora Cannabis, Tilray, GW Pharmaceuticals plc, Organigram Holdings, Aphria, Tikun Olam,., and MARICANN INC, VIVO Cannabis

Industry Restraints & Challenges:

Despite the positive growth prospects, the cannabis extract market faces certain restraints and challenges. One of the primary challenges is the stringent regulatory framework governing the production, distribution, and marketing of cannabis extracts. The legal landscape for cannabis varies widely across different regions, leading to complexities in the supply chain and market access. Additionally, the stigma associated with cannabis consumption in some conservative societies hinders the market growth.

Moreover, the lack of standardized testing and quality control measures for cannabis extracts poses a challenge for market players. Ensuring the consistency, potency, and purity of cannabis extracts is essential for building consumer trust and meeting regulatory requirements. However, the absence of uniform standards and certification processes makes it difficult for manufacturers to maintain product quality and safety.

Furthermore, the competition from the illicit cannabis market and counterfeit products is a significant restraint for the cannabis extract market. Illicit producers often offer unregulated, low-quality products at lower prices, thereby posing a threat to the market legitimacy and revenue potential. This necessitates robust enforcement efforts and public awareness campaigns to combat illicit cannabis trade and safeguard consumer interests.

Regional Forecast:

North America:

North America holds a dominant position in the cannabis extract market, owing to the widespread legalization of cannabis in various states and the increasing adoption of cannabis-based products. The region is witnessing a surge in the demand for cannabis extracts, driven by the expanding use of medical marijuana, growing acceptance of recreational cannabis, and the development of advanced extraction technologies. Furthermore, the presence of key market players and the burgeoning cannabis industry infrastructure in North America are contributing to the market growth.

Asia Pacific:

The Asia Pacific region is emerging as a lucrative market for cannabis extracts, supported by the gradual relaxation of cannabis regulations in certain countries and the rising awareness about the therapeutic benefits of cannabis. While the regulatory landscape is still evolving, several Asian countries are considering the legalization of medical cannabis, which is opening up new opportunities for market expansion. Moreover, the untapped market potential and the increasing consumer interest in cannabis-infused products are driving the market growth in the Asia Pacific region.

Europe:

Europe is witnessing a notable growth in the cannabis extract market, propelled by the shifting attitudes towards cannabis and the implementation of progressive cannabis policies in various European countries. The region is experiencing an upsurge in the demand for high-quality cannabis extracts, particularly for medical and wellness applications. Additionally, the presence of supportive regulatory frameworks, advancements in extraction technologies, and the increasing investments in the cannabis industry are contributing to the market expansion in Europe.

Segmentation Analysis:

Medical Cannabis Extract Market

Medical cannabis extract products are gaining popularity within the cannabis extract market due to their various health benefits. These products are used for medical purposes such as pain management, anxiety relief, and treatment of chronic illnesses. The demand for medical cannabis extract products is increasing among patients who prefer natural remedies over conventional medications.

One of the key sub-segments within the medical cannabis extract market is CBD oil. CBD, or cannabidiol, is a non-psychoactive compound found in cannabis plants that offers a wide range of potential health benefits. CBD oil is used to alleviate symptoms of anxiety, depression, chronic pain, epilepsy, and other health conditions. The growing awareness about the therapeutic properties of CBD oil and its legal status in many parts of the world are driving the demand for this sub-segment.

Recreational Cannabis Extract Market

The recreational cannabis extract market is primarily driven by the increasing acceptance of cannabis consumption for leisure purposes. With several countries legalizing the use of recreational cannabis, the demand for cannabis extract products for recreational use is on the rise. These products are consumed in various forms such as edibles, concentrates, and tinctures.

A prominent sub-segment in the recreational cannabis extract market is THC-infused edibles. Tetrahydrocannabinol (THC) is the psychoactive compound in cannabis that produces a euphoric high upon consumption. THC-infused edibles come in the form of chocolates, gummies, cookies, and beverages, offering consumers a discrete and flavorful way to enjoy the effects of THC. The convenience and long-lasting effects of THC-infused edibles make them a popular choice among recreational cannabis users.

Competitive Landscape:

The cannabis extract market is witnessing intense competition among key players vying for market share. Some of the prominent companies operating in the market include Canopy Growth Corporation, Aurora Cannabis, Tilray, Inc., GW Pharmaceuticals, and Cronos Group. These companies are focusing on product innovation, strategic partnerships, and expansion into new markets to gain a competitive edge in the market.

Canopy Growth Corporation, for instance, has been at the forefront of developing medical cannabis extract products and expanding its product portfolio to cater to the growing demand. The company has also been investing in research and development to explore the potential of cannabis extract in treating various medical conditions. Similarly, Aurora Cannabis has been actively expanding its distribution network and entering into strategic collaborations to strengthen its market presence.

Tilray, Inc. has been focusing on expanding its global footprint through partnerships and acquisitions to capitalize on the growing demand for cannabis extract products worldwide. The company has also been diversifying its product offerings to include a wide range of cannabis extract products for both medical and recreational use. GW Pharmaceuticals has gained recognition for its pioneering efforts in developing pharmaceutical-grade cannabis-derived medicines, particularly for the treatment of epilepsy and multiple sclerosis.

Cronos Group has been actively investing in research and development to create innovative cannabis extract products and enhance its competitive position in the market. The company has also been expanding its cultivation and production capabilities to meet the rising demand for cannabis extracts. These market players are expected to continue their efforts to consolidate their market presence and capitalize on the burgeoning opportunities in the cannabis extract market.