Download Sample, Market Surge as Cannabis Extracts Gain Traction for Medical Use and Therapeutic Benefits
The global cannabis market is fuelled by a growing trend towards legalization for both medical and recreational use. As of 2024, 24 states in the United States have legalized recreational cannabis, and approximately 90% of Americans support medical cannabis, reflecting broad public endorsement. According to the Marijuana Policy Project and Reason Foundation, federal relaxation of restrictions, alongside progressive state legislation, is expanding market opportunities. With only 24 states having legalized cannabis for adults and a significant push in legislative bodies, the global market for cannabis extracts is poised for robust growth, driven by increasing consumer acceptance and regulatory advancements.
The medical cannabis sector is developing with distinguished advancements driven by increasing awareness of cannabis extracts' therapeutic benefits, such as CBD and THC. In June 2024, Stenocare introduced a 'next generation' cannabis oil, showcasing advanced quality and innovation. Aurora Cannabis Inc., in August 2024, expanded its portfolio through a partnership with Vectura Fertin Pharma to launch a new CBD lozenge, demonstrating strategic growth. Additionally, Aurora's introduction of cannabis-infused beverages in January 2024, aimed at veteran patients, highlights a trend towards diverse medicinal forms. These initiatives reflect increased investor interest and shifting market dynamics in medical cannabis.
Cannabinoids, such as cannabidiol and tetrahydrocannabinol, effective at treatment for many disorders like chronic pain, epilepsy, anxiety, depression, and insomnia, have created a high demand for premium cannabis extracts. Their therapeutic effects have grown awareness among consumers. Studies show that CBD and THC work by interacting with CB1 and CB2 receptors in the nervous system, reducing inflammation and pain perception, especially in conditions like arthritis and fibromyalgia. An ever-increasing population has clinical trials supporting the therapy of cannabis extracts; hence, demonstrates greater promotion of their use in medical applications. The National Institutes of Health (NIH) affiliate data mostly declares more preference in the direction of cannabis-based medicinal products (CBMPs) to treat post-traumatic stress disorder (PTSD). Additionally, the aging global population, particularly in North America and Europe, is driving demand for alternative treatments to traditional pharmaceuticals.
The medical cannabis sector is developing with distinguished advancements driven by increasing awareness of cannabis extracts' therapeutic benefits, such as CBD and THC. In June 2024, Stenocare introduced a 'next generation' cannabis oil, showcasing advanced quality and innovation. Aurora Cannabis Inc., in August 2024, expanded its portfolio through a partnership with Vectura Fertin Pharma to launch a new CBD lozenge, demonstrating strategic growth. Additionally, Aurora's introduction of cannabis-infused beverages in January 2024, aimed at veteran patients, highlights a trend towards diverse medicinal forms. These initiatives reflect increased investor interest and shifting market dynamics in medical cannabis.
Cannabinoids, such as cannabidiol and tetrahydrocannabinol, effective at treatment for many disorders like chronic pain, epilepsy, anxiety, depression, and insomnia, have created a high demand for premium cannabis extracts. Their therapeutic effects have grown awareness among consumers. Studies show that CBD and THC work by interacting with CB1 and CB2 receptors in the nervous system, reducing inflammation and pain perception, especially in conditions like arthritis and fibromyalgia. An ever-increasing population has clinical trials supporting the therapy of cannabis extracts; hence, demonstrates greater promotion of their use in medical applications. The National Institutes of Health (NIH) affiliate data mostly declares more preference in the direction of cannabis-based medicinal products (CBMPs) to treat post-traumatic stress disorder (PTSD). Additionally, the aging global population, particularly in North America and Europe, is driving demand for alternative treatments to traditional pharmaceuticals.
Cannabis Oil and THC-Based Products Lead Surge in Global Market Demand
Marijuana is the leading segment of the global cannabis extract market, driven by the rising demand for THC-based products. THC, the primary psychoactive compound in marijuana, continues to dominate the recreational cannabis market, with products like edibles, oils, tinctures, vapes, and concentrates gaining widespread popularity for their mind-altering effects. However, the latest trend of promoting cannabis culture with the legalization of marijuana in selected regions drives the market growth for cannabis. Furthermore, the full spectrum cannabis extract, a mixture of cannabinoids named THC and CBD, is very much recommended for its entourage effect in elevating benefits for therapeutic purposes. These balanced formulations are especially favored for treating issues like chronic pain and anxiety, reinforcing marijuana’s significant role in the market.
Cannabis oil is a leading product in the global cannabis industry because of its rich levels of cannabinoids, mainly THC and CBD, which enable precise dosing and specific therapeutic benefits. CBD oil, which is derived from the cannabis plant and mixed with carrier oils such as coconut or hemp seed oil, is available in various products, including dietary supplements and therapeutic items. Studies cited in NCBI literature suggest that CBD oil has great potential for improving symptoms of mood disorders such as depression and anxiety while also helping to improve cancer-related symptoms and treatment side effects. This positions cannabis oil as a prominent and effective option within the broader spectrum of cannabis extracts.
The global cannabis market presents numerous opportunities driven by advancements in extraction technologies and the rising therapeutic acceptance of medical cannabis. Innovations like ultrasound-assisted extraction, hydrodynamic cavitation, and CO2 extraction are enhancing cannabinoid production efficiency and purity, paving the way for more refined pharmaceutical formulations. Industry players who invest in these advanced methods stand to gain a competitive edge. For example, in December 2023, Gunkul Engineering partnered with Pacific Cannovation Group and DOD BioTech to fix their position in the growing cannabis and hemp sectors.
Cannabis oil is a leading product in the global cannabis industry because of its rich levels of cannabinoids, mainly THC and CBD, which enable precise dosing and specific therapeutic benefits. CBD oil, which is derived from the cannabis plant and mixed with carrier oils such as coconut or hemp seed oil, is available in various products, including dietary supplements and therapeutic items. Studies cited in NCBI literature suggest that CBD oil has great potential for improving symptoms of mood disorders such as depression and anxiety while also helping to improve cancer-related symptoms and treatment side effects. This positions cannabis oil as a prominent and effective option within the broader spectrum of cannabis extracts.
The global cannabis market presents numerous opportunities driven by advancements in extraction technologies and the rising therapeutic acceptance of medical cannabis. Innovations like ultrasound-assisted extraction, hydrodynamic cavitation, and CO2 extraction are enhancing cannabinoid production efficiency and purity, paving the way for more refined pharmaceutical formulations. Industry players who invest in these advanced methods stand to gain a competitive edge. For example, in December 2023, Gunkul Engineering partnered with Pacific Cannovation Group and DOD BioTech to fix their position in the growing cannabis and hemp sectors.
Recent Trends in the Cannabis Extract Industry
- Innovations like supercritical CO2 and ethanol extractions improve cannabis extract quality and consistency.
- Cannabis extracts are used in edibles, beverages, topicals, tinctures, and capsules, expanding market reach.
- The cannabis extract market is emphasizing eco-friendly extraction and sustainable sourcing practices.
- Cannabis extracts are being incorporated into wellness and pharmaceutical products for health issues.
Explore Our Breakthrough Market Segmentation and Personalize it to Meet Your Business Needs…!
Advanced Extraction Costs and Stringent Regulations Hinder Growth in the Cannabis Extract Industry
The production of cannabis extracts often involves high costs due to advanced technologies, research and development, and quality control measures. These costs can affect the profitability and scalability of businesses in the sector. According to NIH, the challenge of selecting appropriate extraction and separation processes directly impacts product quality and cost, with Latin American countries' advanced extraction technologies highlighting this challenge. Additionally, the Tax Foundation reveals that weight-based taxation inadequately addresses cannabis potency, potentially encouraging the production of more potent and hazardous products. The high initial costs for large-scale extraction equipment, ranging from US$ 100,000 to US$ 500,000, further restrict market scalability. Meanwhile, MACH Technologies reports that emerging eco-friendly solvents, such as water and ionic liquids, may require substantial technological advancements and higher initial investments before becoming viable alternatives to traditional methods.
The global cannabis extract market faces significant challenges due to inconsistent regulations and a lack of international standards. While countries like Canada have established a clear framework for cannabis, others have either not legalized it or imposed strict regulations, limiting cross-border trade. Inconsistent licensing and compliance requirements also present barriers, with lengthy and costly approval processes, especially in the United States, where cannabis remains illegal at the federal level. The big fragmentation in the regulation makes operations difficult to extend. Tax is another big hurdle for cannabis businesses, given the excessive tax rates, which erode profitability. Additionally, constantly shifting regulations, such as new taxes and compliance demands, create uncertainty, discouraging investment and hindering long-term business planning across various regions.
The global cannabis extract market faces significant challenges due to inconsistent regulations and a lack of international standards. While countries like Canada have established a clear framework for cannabis, others have either not legalized it or imposed strict regulations, limiting cross-border trade. Inconsistent licensing and compliance requirements also present barriers, with lengthy and costly approval processes, especially in the United States, where cannabis remains illegal at the federal level. The big fragmentation in the regulation makes operations difficult to extend. Tax is another big hurdle for cannabis businesses, given the excessive tax rates, which erode profitability. Additionally, constantly shifting regulations, such as new taxes and compliance demands, create uncertainty, discouraging investment and hindering long-term business planning across various regions.
Product Expansion and Strategic Partnerships Power Cannabis Brands into New Regional Markets
Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. In July 2024, Wyld, a leading United States cannabis brand, entered the New York market, furthering its East Coast expansion. Known for its premium cannabis edibles, Wyld now extends its footprint to 15 U.S. states and Canada. The company's items, such as the well-loved Wyld Elderberry and Boysenberry gummies, are known for their genuine fruit components and reliable dosages. With recent launches in Maryland, Massachusetts, and New York, Wyld continues to enhance its market presence by offering high-quality, reliable cannabis experiences tailored to diverse consumer needs.
Moreover, in December 2023, 4Front Ventures Corp. launched a new cannabis flower brand, The Hunt, expanding its presence in Massachusetts. The brand features limited-run, small-batch strains available at Mission Dispensaries in Georgetown, Worcester, and Brookline. The Hunt is set to expand to Illinois in early 2024, highlighting 4Front's focus on providing high-quality, affordable cannabis products. In Addition, in December 2023, Gunkul Engineering (GUNKUL) partnered with Pacific Cannovation Group (PACCAN) and DOD BioTech Public Company Limited (DOD) to enhance its position in the cannabis and hemp sector. The collaboration focused on developing health-oriented cannabis extracts for medical use, with plans to expand distribution and become a leading global exporter, expecting significant growth in 2024.
However, in November 2024, Vantage Hemp Co. launched its pharmaceutical-grade CBG isolate, setting a new industry standard for compliance with cGMP and global certifications. Furthermore, in 2024, Samson Extracts expanded its product offerings to include bulk CBD isolate extraction, marking its entry into the global hemp and cannabis markets. The company leveraged its GMP-certified extraction system to boost high-volume output, positioning itself as a leading wholesale CBD supplier. This move aligns with the growing demand for hemp-derived ingredients, with Samson further strengthening its relationships with Southern farming partners to meet market needs.
Moreover, in December 2023, 4Front Ventures Corp. launched a new cannabis flower brand, The Hunt, expanding its presence in Massachusetts. The brand features limited-run, small-batch strains available at Mission Dispensaries in Georgetown, Worcester, and Brookline. The Hunt is set to expand to Illinois in early 2024, highlighting 4Front's focus on providing high-quality, affordable cannabis products. In Addition, in December 2023, Gunkul Engineering (GUNKUL) partnered with Pacific Cannovation Group (PACCAN) and DOD BioTech Public Company Limited (DOD) to enhance its position in the cannabis and hemp sector. The collaboration focused on developing health-oriented cannabis extracts for medical use, with plans to expand distribution and become a leading global exporter, expecting significant growth in 2024.
However, in November 2024, Vantage Hemp Co. launched its pharmaceutical-grade CBG isolate, setting a new industry standard for compliance with cGMP and global certifications. Furthermore, in 2024, Samson Extracts expanded its product offerings to include bulk CBD isolate extraction, marking its entry into the global hemp and cannabis markets. The company leveraged its GMP-certified extraction system to boost high-volume output, positioning itself as a leading wholesale CBD supplier. This move aligns with the growing demand for hemp-derived ingredients, with Samson further strengthening its relationships with Southern farming partners to meet market needs.
Searching for a Country or Region Specific Report?
Unlock industry complexities with reports crafted for selected countries and regions at Reduced Cost
Europe and North America Lead Cannabis Extract Market Growth with Focus on Wellness and Therapy
The global cannabis extract market is increasing, with the United States and Canada as key drivers. In the United States, legalization across numerous states has fuelled demand for CBD and THC extracts, while Canada’s full legalization in 2018 has established a stable market. The rising preference for convenient, potent cannabis extracts, particularly for wellness and medical uses, is further boosting the industry’s growth. Additionally, there is an increasing amount of research focused on the use of cannabis extracts to address medical issues such as chronic pain, anxiety, epilepsy, multiple sclerosis, as well as cancer.
Healthcare institutions and prominent companies are collaborating to create and introduce these products. This collaboration has also led to a rising demand for cannabis extracts. For instance, in June 2024, Prodigy Processing Solutions partnered with Refined Processes LLC to establish a pioneering GMP-compliant medical cannabis extraction facility in the United States, while Naturae broadened their brand and product offerings in 2023 with the launch of Jumbodose. Jumbodose is a line of full-spectrum cannabis oil tinctures offered in various types to produce different cognitive effects.
Europe is rapidly emerging as the fastest-growing region in the global cannabis extract market, driven by significant legislative advancements, particularly in medical cannabis. The full legalization of medical cannabis in Germany further fuels the demand for cannabis-based therapies and extracts. The country is witnessing an upsurge in interest in the health benefits of CBD, a compound from cannabis, such that consumer awareness has expanded into wellness products, from oils, and tinctures, to topicals, then into skincare, foods, and beverages. Lastly, investment in research, infrastructure, and production facilities is further driving the market and bringing high-quality cannabis extracts into use across Europe.
Healthcare institutions and prominent companies are collaborating to create and introduce these products. This collaboration has also led to a rising demand for cannabis extracts. For instance, in June 2024, Prodigy Processing Solutions partnered with Refined Processes LLC to establish a pioneering GMP-compliant medical cannabis extraction facility in the United States, while Naturae broadened their brand and product offerings in 2023 with the launch of Jumbodose. Jumbodose is a line of full-spectrum cannabis oil tinctures offered in various types to produce different cognitive effects.
Europe is rapidly emerging as the fastest-growing region in the global cannabis extract market, driven by significant legislative advancements, particularly in medical cannabis. The full legalization of medical cannabis in Germany further fuels the demand for cannabis-based therapies and extracts. The country is witnessing an upsurge in interest in the health benefits of CBD, a compound from cannabis, such that consumer awareness has expanded into wellness products, from oils, and tinctures, to topicals, then into skincare, foods, and beverages. Lastly, investment in research, infrastructure, and production facilities is further driving the market and bringing high-quality cannabis extracts into use across Europe.
The report provides a detailed overview of the cannabis extract market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the cannabis extract market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the cannabis extract market. These Y-o-Y projections on regional and country-level markets brighten the political, economic,c and business environment outlook, which are anticipated to have a substantial impact on the growth of the cannabis extract market. Some key countries and regions included in the cannabis extract market report are as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Central America Countries, Caribbean Countries, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Czech Republic, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Thailand, Bangladesh, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Iraq, Kenya, Rest of MEA |
Cannabis Extract Market Research Report Covers In-depth Analysis on:
- Cannabis extract market detailed segments and segment-wise market breakdown
- Cannabis extract market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in cannabis extract industry)
- Current, historical, and forthcoming 10 years market valuation in terms of cannabis extract market size (US$ Mn), volume (Tons), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Cannabis extract market demand analysis
- Cannabis extract market pricing analysis overthe forecast period (by key segment and by region)
- Cannabis extract market regional insights with a region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the cannabis extract market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in cannabis extract market
- Cannabis extract market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on cannabis extract market forecast by countries
- Mergers and acquisitions in cannabis extract market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What factors are driving the demand for cannabis extracts?
The demand for cannabis extracts is driven by factors such as rising awareness of their therapeutic benefits, expanding legalizations, and the growing interest in natural wellness solutions. Increased product availability also plays a key role.
What are the major challenges faced by cannabis extract manufacturers?
Cannabis extract manufacturers face challenges such as regulatory hurdles, inconsistent quality control, and the high costs of extraction processes. These challenges affect the pricing, production, and distribution of cannabis extract products.
What are the emerging trends in the cannabis extract market?
Emerging trends include a focus on cleaner and more efficient extraction methods, greater consumer demand for high-quality CBD products, and the rise of cannabis-infused beverages and topicals in the wellness sector.
