How Has The Cannabis Extract Market Size Evolved In Recent Years?
The cannabis extract market has seen considerable growth due to a variety of factors.
• In recent times, there has been an explosive growth in the size of the cannabis extract market. This market is projected to expand from a size of $10.38 billion in 2024 to $12.7 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 22.3%. This substantial growth during the historic phase can be credited to the rise of the CBD market, the shift in consumer preferences towards natural products, the legalization of recreational cannabis, a wide variety of product offerings, and ongoing research and development.
What are the Market Size and Expected Growth Rates for the Cannabis Extract Market?
The Cannabis Extract market is expected to maintain its strong growth trajectory in upcoming years.
• There is expected to be a rapid expansion in the cannabis extract market size in the coming years. The market is predicted to increase to $26.47 billion by 2029 with a compound annual growth rate (CAGR) of 20.1%.
Factors contributing to this growth in the forecast period include an emphasis on health and wellness, consumer education efforts, personalization of extract items and incorporation into beauty and personal care fields. For the forecast duration, key trends would involve advancements in extraction techniques, wide-ranging and full-spectrum extracts, a focus on terpenes, standardization and assurance of product quality, as well as collaborations and partnerships.
Which Key Drivers Are Propelling The Cannabis Extract Market's Growth?
The rise in the frequency of chronic diseases is anticipated to fuel the demand in the cannabis extract market. These persistent conditions, which persist for a year or more and need continuous medical care, can often be treated effectively with cannabis extract. For instance, the World Health Organization, a specialist agency based in Switzerland under the United Nations, reported in September 2023 that there were 41 million fatalities, making up 74% of all deaths from non-communicable or chronic diseases worldwide annually. Thus, the escalating occurrence of chronic diseases is a significant driving force behind the growth of the cannabis extract market.
What Are The Key Segments Within The Global Cannabis Extract Market?
The cannabis extract market covered in this report is segmented –
1) By Product Type: Oils, Tinctures
2) By Extract Type: Full Spectrum Extracts, Cannabis Isolates
3) By Sources: Hemp, Marijuana
4) By Distribution Channel: Hospital Pharmacies, Retail Pharmacies, Online Pharmacies
5) By Application: Textile, Cosmetic, Pharmaceutical, Paper
Subsegments:
1) By Oils: CBD Oils, THC Oils, Full-Spectrum Oils
2) By Tinctures: CBD Tinctures, THC Tinctures, Herbal Infused Tinctures
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How Are New Trends Impacting The Size Of The Cannabis Extract Market?
The increasing trend of collaboration is influencing the cannabis extract market. Many prominent firms in the sector are resorting to partnerships to maintain their market position. For example, Freedom Cannabis Inc., a Canadian cannabis firm, collaborated with Cannabis Tolling Solutions (CTS), a Canadian cannabis extraction service provider. In January 2023, they announced the successful set-up and operation of their new cannabis extract processing lab. This advanced lab, equipped with cutting-edge hydrocarbon extraction machinery, will increase the revenue for both parties by producing cannabis extracts. Initially, the lab will produce additive-free cannabis extract vape pen-ready products and full-spectrum cannabis extracts, otherwise known as 'diamonds and sauce'. Freedom Cannabis has facilitated CTS's entry into the legal concentrates market. The inauguration of this extraction lab signifies the evolution of their pre-existing alliance.
Who Are the Key Players In The Cannabis Extract Market?
Major companies operating in the cannabis extract market include:
• Canopy Growth Corporation
• Tikun Olam
• Aurora Cannabis Inc.
• Aphria Inc.
• Tilray Inc.
• GW Pharmaceuticals PLC
• The Cronos Group
• The Supreme Cannabis Company Inc.
• Elixinol Global Limited
• Westleaf Cannabis Inc.
• Medipharm Labs Corp.
• The Valens Company Inc.
• Curaleaf Holdings Inc.
• Innovative Ind Props
• Green Thumb Industries
• Verano Holdings
• Trulieve Cannabis Corp.
• Cresco Labs Inc.
• Delta 9 Cannabis Inc.
• BZAM Ltd.
• Sundial Growers Inc.
• Decibel Cannabis Company
• Auxly Cannabis Group
• Red White & Bloom Brands
• Jazz Pharmaceuticals PLC
• Organigram Inc.
• MedReleaf Corp.
• Terrascend Corp.
What Are The Regional Insights Into The Cannabis Extract Market?
North America was the largest region in the cannabis extract market in 2024. The regions covered in the cannabis extract market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
