Cannabis Extract Market to Hit $15.5 Billion by 2030
SAN FRANCISCO – The global cannabis extract market size is expected to reach USD 15.5 billion by 2030. According to a new report by Grand View Research, Inc, it is expected to expand at a CAGR of 20.6% over the forecast period. The growth is attributed to the rising usage of cannabis for recreational and medical purposes has increased. Various nations have legalized cannabis usage which has reduced the sale in the black market and increased legal product purchases.
Key Industry Insights & Findings from the report:
- The growing cannabis legalization in several nations, demand for cannabis oil and tinctures, and the use of medical marijuana to treat chronic ailments are the factors expected to drive the growth of the industry.
- The oil segment dominated with a revenue share of 63.0% in 2021, owing to the product’s rising medical applications, simplicity of availability, and low price.
- The full spectrum segment held the leading revenue share of 69.7% in 2021. The entourage effect-a synergistic link between cannabinoids and terpenes that increases each cannabinoid’s therapeutic properties-is one of the key factors boosting segment share.
- Based on source, marijuana held the highest revenue share in 2021 and is also expected to register the fastest CAGR over the forecast period.
- North America accounted for the highest revenue share of 78.9% in 2021, owing to increased product uptake and usage due to marijuana legalization in the region.
Cannabis Extract Market Growth & Trends
The industry has also opened revenue-generating opportunities for various countries through government-imposed taxes on cannabis oil and tinctures that are commonly used to treat various ailments, including anxiety, nausea, and cancer. The rising prevalence of cancer is also a significant factor. The growing burden of chronic pain has also increased the demand for treatments related to pain management and thus, positively impacting the growth.
Based on product type, the oil segment held the largest revenue share of 63.0% in 2021 and is also expected to grow at the fastest rate. The product’s rising medical application is one of the supporting aspects. Based on the extract, the full spectrum segment dominated with a revenue share of 69.7% in 2021. The segment has been exploding in the overall market expansion due to the increased usage of marijuana for medical and recreational applications. Legalizing marijuana has resulted in increased product purchases through legal channels, reducing black market sales in several nations.
North America held the largest revenue share of 78.9% in 2021. The legalization of cannabis extract in many sectors, such as pharmaceutical and other industries, has increased demand for the product throughout North America, particularly in the United States.
The economic downturn brought on by the COVID-19 pandemic has affected every industry. The cannabis industry went through a series of testing. As industries seek to position themselves through the coronavirus pandemic or even beyond whenever the pandemic scenario is finally resolved, commercial contracts, financials, and customers’ responses are being scrutinized more than ever. But the pandemic also provided an opportunity for numerous manufacturers to streamline their operational models, eliminate inefficiencies, and rethink their launch or expansion plans.
Cannabis Extract Market Segmentation
Grand View Research has segmented the global cannabis extract market based on product type, extract type, sources, end-use, and region:
Cannabis Extract Market – Product Type Outlook (Revenue, USD Million, 2016 – 2030)
Cannabis Extract Market – Type Outlook (Revenue, USD Million, 2016 – 2030)
- Full Spectrum Extracts
- Cannabis Isolates
Cannabis Extract Market – Sources Outlook (Revenue, USD Million, 2016 – 2030)
Cannabis Extract Market – End-use Outlook (Revenue, USD Million, 2016 – 2030)
- Medical Use
- Chronic Pain
- Depression and Anxiety
- Multiple Sclerosis
- Amyotrophic Lateral Sclerosis
- Post-Traumatic Stress Disorder (PTSD)
- Recreational Use
Cannabis Extract Market – Regional Outlook (Revenue, USD Million, 2016 – 2030)
- North America
- Czech Republics
- Asia Pacific
- Latin America
- Middle East and Africa
- South Africa
List of Key Players in the Cannabis Extract Market
- Tikun Olam
- CANOPY GROWTH CORPORATION
- Tilray Aurora Cannabis
- The Cronos Group
- Maricann Inc.
- Controlled Environments Limited
- Organigram Holdings Inc.
- VIVO CANNABIS
- The Cronos Group
- Aurora Cannabis Inc.
- Aphria Inc.
(This information is primarily sourced from Grand View Research, Inc. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).
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