Cannabis Extract Market Growth Accelerated by Increased Medical Applications
Cannabis Extract Market |
Cannabis extracts are
concentrated formulations obtained from cannabis plants through various
extraction processes such as CO2 extraction, ethanol extraction, and
hydrocarbons extraction. Edible cannabis extracts are used in various food
products such as drinks, candies, baked goods, and others. While topical
cannabis extracts are used in cosmetic products for their purported therapeutic
benefits. The global cannabis extract market is estimated to be valued at US$12,331.66 Bn in 2023 and is expected
to exhibit a CAGR of 23% over the
forecast period 2024 to 2031, as highlighted in a new report published by
Coherent Market Insights.
Market Dynamics:
One of the key drivers for the
growth of the global cannabis extract market is the increasing legalization of
cannabis and its derivatives across various countries. In recent years, many
countries have legalized the use of cannabis for medical as well as
recreational purposes, which has significantly boosted the demand for cannabis
extracts. According to the UNODC, around 47 countries have legally recognized
the use of cannabis in some form. The increasing commercialization of
cannabis-based products is another major factor fueling the market growth. Many
companies are launching innovative cannabis-based edibles, beverages, topicals,
and other products to capitalize on the opportunities in the legal cannabis
industry. However, the complex regulatory framework around the use of cannabis
continues to hinders the overall growth of the market.
SWOT Analysis
Strength: The cannabis extract
market has been witnessing strong growth owing to the legalization of cannabis
for medical and adult-use in various countries. Increasing availability of
different cannabis extract products such as vape pens, edibles, tinctures is
expanding the market potential. Additionally, widening scope of applications
for cannabis extract in conditions like chronic pain, arthritis, depression is
fueling the market growth.
Weakness: However, the regulatory
barrier and legalization status of cannabis in many countries still remains a
major challenge for the industry. Strict norms and guidelines around the
production, distribution and sales of cannabis products limits the scope of
growth. Lack of standards for dose and product quality can also negatively
impact consumer safety.
Opportunity: Emerging trends like
cannabis legalization in more countries and regions like Europe and Asia
present significant growth avenue. Continuing research focused on the medical
benefits is helping expand approved therapeutic applications and strengthen the
market position. Growing consumer awareness about cannabis wellness products
also provides new opportunities.
Threats: Stringent regulations
around cannabis advertising and marketing remains a persistent threat. Stigmas
associated with cannabis use can deter potential customers. Stringent import and
export regulations between countries where cannabis is legal and others where
it is not approved also poses challenges. Rising competition from alternative
treatment therapies is another threat.
Key Takeaways
The Global
Cannabis Extract Market Share is expected to witness high growth over
the forecast period.
Regional analysis shows that North America currently dominates the
global market with the U.S. capturing the largest share. Favorable regulatory
framework, significant investments in cannabis cultivation infra and widening
product portfolio are fueling the regional market growth. Europe is identified
as the fastest growing region owing to increasing medical cannabis legalization
and growing consumer acceptance in countries like Germany. Asia Pacific region
is also projected to offer promising growth avenues led by emerging economies
like India easing cannabis regulations and China ramping up industrial hemp
production.
Key players operating in the Cannabis Extract Market are Zeta
Global Corp, Oracle Corporation, mParticle Inc., Salesforce.com Inc.,
BlueConic, Adobe Inc., Tealium, SAP SE, Acquia Inc., and Segment.Io Inc.
(Twilio). These companies are mainly adopting product innovation, expansion
strategies to enhance their market presence. For instance, mParticle recently
acquired certain assets of Crumbs to strengthen its mobile data capabilities.
Tealium partnered with Lotame to integrate third-party data with its unified
customer data platform.
Get More Insights Here
https://www.newsanalyticspro.com/cannabis-extract-market-analysis-size-share-growth-outlook-2023/
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