ReportCrux Market Research has published a new report titled “Cannabis Extract Market by Product (Tinctures, Oils); by Extract type (Cannabis Isolates, Full spectrum); by Type of nature (Conventional, Organic); by Distribution (Indirect, Direct); by Application (Pharmaceutical, Textile & Paper, Cosmetics and Other) and by Region: Global Industry Trends, Dynamics, Competitive Insights and Forecast Analysis, 2020 – 2027”.
Cannabis Extract Market Size
Cannabis Extract Market is estimated to grow from USD 7.09 Billion in 2019 to USD 26.11 Billion by 2027, at a CAGR of 17.8% during 2020-2027
Market Overview
Cannabis is derived from the hemp plants like Cannabis indica and Cannabis sativa, and which has an active ingredient known as THC (delta-9 tetrahydrocannabinol). The extracts that are derived from the concentrates of this cannabis are known as cannabis extracts.
The key factors driving the global market for cannabis extracts include rising legalization of marijuana in various countries for recreational purpose as well medical use, increasing use of marijuana for the treatment of various chronic pain involved diseases, mental disorders, anxiety, depression and many others.
Legalization of marijuana in some countries has helped in declining the black-market sales, as well the tax charged by the government is also helping to create higher revenue opportunities.
Segmentation Analysis
The global market for the Cannabis Extract is segmented into product, extract type, type of nature, distribution, application and region.
By Extract Type:
Based on extract type, the market is categorized into cannabis isolates and full spectrum. The full spectrum segment dominated the market. It is expected to grow at the fastest CAGR of more than 21% and accounted for a share of near about 58% and was valued at USD 4.13 Billion.
By Product:
Based on product, the market is segmented into tinctures and oils. Cannabis tinctures and oils have varied applications into medical field. These are usually used for treating various conditions like cancer, nausea, psychological disorders and similar. The oil segment acquired a larger share of about 64% of the overall market. This is due to its wider application into medical field.
By Type of Nature:
Based on type of nature, the market is divided into Conventional and Organic. As there is a rising demand and trend for organic products globally, the market for organic cannabis is expected to surge during the forecast period. Apart from the manufacturers view, organic growers have better outcome as compared to conventional. Commercially available organic fertilizers, additives and growing media are expected to go long way in the recent years.
By Distribution:
On the basis of distribution, the global market for cannabis extract is segmented into indirect and direct distribution channel. Wherein, the indirect distribution channel is further sub-segmented into convenience stores, supermarkets/hypermarkets, e-retailers and specialty stores.As there is more demand of cannabis extract into medicinal use, there is a high demand in pharmaceutical sector thus making the direct distribution channel have the larger market share.
By Application:
The market is segmented into pharmaceutical, textile & paper, cosmetics and other by application. Cannabis extract has a wide range of applications in the field of pharmaceuticals as it is used in the treatment of various diseases like cancer, nausea, psychological disorders, neurological problems, HIV/AIDS and similar.
Also, various countries have done the legalization of marijuana for medicinal use only. This increases the values share of the pharmaceutical industry/segment to have an upper hold as compared to rest industries.
By Region:
North America dominate the market by acquiring approximately 74.3% of the overall market share
Geographically, the market is classified into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. North America dominated the market by approximately 74.3% of the overall market and valued around USD 5.26 Billion in 2019. This high share can be attributed due to legalization of marijuana and hence the higher rate of adoption and utilization of the product.
Cannabis has been legalized in 10 states in U.S. for recreational consumption since 2012 and the nationwide support for the legalization of cannabis is growing every year. 78% of the Americans in the age group of 18 to 34 years supported legalization of marijuana in 2018. According to SAMHSA; RTI International, in 2017, about 122 million people in the U.S. tried marijuana.
Also, according to the latest statistics, the support for medical use of marijuana among all the age groups in the U.S. was around 77%. Cannabis has been approved in 33 states for the medical use, as of November 2018, and is used for the treatments associated with Cancer, AIDS, Glaucoma and others.
In 2019, Europe was followed by North America to account for the second largest revenue share. The legalization of marijuana in European countries for recreational purpose is still accompanied with strict rules. However, some countries have started to legalize cannabis for medicinal purpose. Italy is considered as the 4th largest consumer of cannabis in terms of concentrates and oil.
Others regions like Asia-Pacific, Latin America and Middle East & Africa are also considered as promising markets in the near future. Israel is expected to grow at the fastest CAGR of 32.6% during the forecast period from 2020 to 2027. This high growth is anticipated due to increasing research activity, liberal government policies in the country, increased innovation techniques and a well-developed ecosystem.
Segments of Market:
By Product
Tinctures
Oils
Oil:64%
By Extract Type
Cannabis isolates
Full spectrum
Full Spectrum:58%
By Nature
Conventional
Organic
By Distribution
Indirect
Direct
By Application
Pharmaceutical
Textile & paper
Cosmetics
Other
By Region
North America
Latin America
Europe
Asia-Pacific
Middle-East & Africa
North America:74.3%
Key Market Analysis
Major players in Cannabis Extract market are Dabble Extracts (U.S.), Colorado Cannabis Company (U.S.), Optimum Extracts (U.S.), Kynd Cannabis Company (U.S.), Aurora Cannabis (Canada), SLANG Worldwide (Canada), The Chronos Group (Canada), Canopy Growth Corporation (Canada), Maricann Group, Inc. (Canada), Aphria, Inc (Canada), Tilray (Canada), ABcann Medicinals, Inc. (Canada), Organigram Holding, Inc. (Canada), Peridot Labs (Canada), GW Pharmaceuticals, plc. (U.K.), Tikun Olam, Ltd. (Israel)among others.
These industry leaders are aggressively adopting diverse strategies to grow their market share.
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