Global Cannabis Extract Market Is Estimated To Witness High Growth Owing To Increasing Legalization and Medical Applicat

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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:
Cannabis extracts are concentrated forms of cannabis that are derived from the plant. These extracts contain higher levels of cannabinoids such as THC (tetrahydrocannabinol) and CBD (cannabidiol) compared to the plant itself. They are used for various purposes including medical treatments, recreational use, and wellness products.

The need for cannabis extracts arises from their potential therapeutic benefits in managing various medical conditions such as chronic pain, epilepsy, multiple sclerosis, and nausea associated with chemotherapy. Additionally, the increasing legalization of cannabis for medical and recreational use in several countries has also contributed to the growth of the market.

Market Key Trends:
One key trend driving the growth of the cannabis extract market is the increasing legalization of cannabis for medical and recreational use. Several countries, including Canada and various states in the United States, have legalized cannabis for medical and/or recreational use. This has created a significant market opportunity for cannabis extract products, as consumers seek alternative methods of cannabis consumption beyond smoking or vaping.

For example, the legalization of cannabis for recreational use in Canada in 2018 has led to the emergence of a robust cannabis extract market. Consumers can now choose from a wide range of cannabis extract products such as oils, tinctures, edibles, and topicals. This trend is expected to continue as more countries recognize the potential medical benefits of cannabis and reform their regulatory frameworks accordingly.

PEST Analysis:
- Political: The political landscape surrounding cannabis legalization varies across countries. In some countries, such as Canada and Uruguay, cannabis has been fully legalized for both medical and recreational use. However, in other countries, it remains illegal or only allowed for medical use.
- Economic: The economic impact of the cannabis industry is significant, with the potential for job creation, tax revenue generation, and investment opportunities.
- Social: The social acceptance of cannabis has been increasing, fueled by its potential medical benefits and changing attitudes toward recreational use.
- Technological: Advancements in extraction techniques and product formulations have enabled the development of a wide range of cannabis extract products with improved purity and consistency.

D) Key Takeaways:
- The global cannabis extract market is expected to witness high growth, exhibiting a CAGR of 17.3% over the forecast period, due to increasing legalization and the growing demand for medical applications of cannabis.
- North America is expected to dominate the market, driven by the legalization of cannabis in several states in the US and full legalization in Canada.
- Key players operating in the global 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.

In conclusion, the global cannabis extract market is poised for significant growth driven by increasing legalization and the growing recognition of its medical applications. With advancements in extraction techniques and product formulations, the market is expected to offer a wide range of innovative products to cater to the diverse needs of consumers. However, regulatory challenges and social stigma associated with cannabis remain hurdles that need to be overcome for the market to reach its full potential.

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