The Brainy Insights projects that the cannabis extract market, which was valued at USD 3.6 billion in 2022, will experience significant growth and reach USD 23.1 billion by 2032. The industry’s expansion can be attributed to various factors, including the need for alternative cannabis consumption methods, increased public awareness of cannabis’ potential therapeutic benefits, and greater acceptance of medical marijuana.
One crucial driver of the market’s growth is the advancement in extraction techniques, allowing the production of high-quality extracts with precise cannabis profiles. This has contributed to an increase in consumer demand for cannabis extracts. Additionally, the evolving regulations and laws governing cannabis in different countries influence the accessibility, distribution, and market development of cannabis extracts.
Europe is projected to experience the fastest growth in the cannabis extract market, with a compound annual growth rate (CAGR) of 22.3% over the forecast period. Several European nations, including Spain, the United Kingdom, and Germany, have embraced cannabis for medicinal purposes, contributing to the market’s expansion. However, stringent regulations on sales and cultivation may pose challenges to the overall growth in Europe and the global market.
Within the cannabis extract market, the full-spectrum segment is expected to witness the highest CAGR of 21.8% over the projection period. Full-spectrum extracts preserve terpenes, aromatic compounds naturally found in cannabis plants, which enhance the flavor and fragrance and may offer medicinal benefits. The entourage effect, where terpenes and cannabis compounds work together, influences the overall effects and user experience of the extract.
Furthermore, the oil segment is anticipated to see the highest CAGR of 21.6% over the projection period. Cannabis oil is increasingly preferred over cannabis flowers, as it is believed to reduce stress, anxiety, and sleep difficulties. Cannabis isolates and extracts have gained popularity due to their therapeutic advantages and lack of psychoactive effects, making them appealing to a broader audience.
The marijuana segment is expected to show the highest CAGR of 23.2% over the projection period. These extracts are distinguished by their high concentration of THC, appealing to medicinal cannabis users seeking its euphoric effects and recreational users interested in the intoxicating aspects. Marijuana extracts, including oils, concentrates, and edibles, are widely consumed in this market, offering accurate dosage and rapid effects.
The cannabis extract market offers numerous growth opportunities, given the wide range of products available to cater to various customer preferences. From CBD oil products to vape cartridges, sweets, and topicals, the market’s diverse offerings have contributed to its overall popularity and growth.
Additionally, the potential for cannabis extracts to be used in medicine presents a significant growth opportunity. As research into the therapeutic effects of cannabinoids continues, there is potential for the development of cannabis-derived medicines and prescription drugs. Companies that can navigate regulatory restrictions, conduct rigorous clinical trials, and provide regulated medical-grade extracts stand to enter the pharmaceutical sector and offer alternative therapeutic options.
Overall, the cannabis extract market is poised for substantial growth, driven by factors such as changing regulations, improved extraction techniques, and increasing awareness of cannabis’ potential benefits. The industry’s expansion is expected to create significant opportunities for businesses operating in this space.
