Cannabis Extraction Market: Overview
The market size for cannabis extraction was USD 2,582.4 million in 2021, and it is projected to grow at a CAGR of 20.3 percent during the forecast period. The sector is expanding due to rising demand for cannabis extracts, such as oils and tinctures, and the greater legalization of marijuana to treat many chronic conditions, such as cancer, arthritis, Alzheimer's disease, and anxiety. Due to a deeper understanding of its many medical advantages, the cannabis market is booming.
People now choose to purchase medicinal cannabis lawfully, which has led to a decline in the illegal market in several nations where it has been decriminalized and legalized. Tinctures and oil can be used to create topical and edible products in addition to smoking. These are widely regarded in treating illnesses like motion sickness, cancer, mental disease and leisure activities like vaping. The rules governing medicinal marijuana extracts are much more lenient than those governing dried buds, which include smoking in terms of legality, facilitating the industry's expansion. The market for cannabis extract is expected to expand due to the increased incidence of chronic diseases like cancer, diabetes, and others. In 2022, the American Cancer Society predicts that roughly 1.9 million new cancer cases will be identified in the country.
Additionally, the World Health Organization (WHO) predicts that 2.5% of the world's population smokes cannabis annually, increasing the demand for CBD. According to the National Center for Biotechnology Information, 62% of the world's population suffers from chronic diseases, and CBD extract is used to treat them (NCBI). However, depression is a prevalent mental illness. Around 5.0% of adults worldwide are thought to experience depression. The leading cause of disability in the world, depression, adds greatly to the disease burden.
The market is anticipated to grow faster due to the increased frequency of chronic diseases and studies showing cannabis extracts' beneficial benefits in certain conditions. However, a lack of knowledge and comprehension about the multiple advantages in developing nations and a robust regulatory presence regulating CBD usage impede the global industry.
Cannabis Extraction Market: COVID-19 Impact
On December 31, 2019, Wuhan, China, received the first report of the coronavirus (COVID-19) outbreak. The WHO (World Health Organization) announced COVID-19 as a pandemic on March 11, 2020. Over 525,467,084 cases of coronavirus disease (COVID-19) were reported through May 27, 2022, according to the World Health Organization's Coronavirus (COVID-19) Weekly Epidemiological Update.
According to the National Center for Biotechnology Information, 2021, the COVID-19 pandemic was a significant factor in the rise in cannabis consumption rates worldwide. During the pandemic, about half of cannabis users in the United States reported taking cannabis to relieve stress and worry. Additionally, the rise in home-based employment and the restrictions placed on social gatherings led to higher rates of cannabis use than had been anticipated before the pandemic, with retail cannabis sales expected to increase by 35% in 2020 compared to the previous forecast for the legal US markets.
Cannabis Extraction Market: Drivers
Legalization Regarding Usage of Cannabis to Drive Market Growth
An ineffective cold chain infrastructure is the main factor behind food loss and wastage. Fruits, With the increasing legalization of cannabis usage in developed nations, emerging countries have also noticed a well-known trend. For instance, the Narcotics Control Act of South Korea was updated in November 2018 to permit the use of medicinal cannabis, making South Korea the first country in East Asia to do so. Additionally, Colombia made a historic advancement in July 2016 by enacting the bill of 1787. The primary goal of this law is to make access to medical marijuana possible. Despite this, the legislators created a legal framework that allows for the extraction, cultivation, production of finished goods, and exportation of cannabis-based products. In the United States, the use of cannabis for medical purposes is permitted in 33 states, the District of Columbia, and four of the five permanently populated areas. Numerous states, including Colorado, Alaska, Maine, Illinois, Michigan, Massachusetts, Oregon, Nevada, Washington, Vermont), the District of Columbia, and Guam, have legalized cannabis use for recreational purposes. Additionally, fifteen states have decriminalized cannabis in addition to the US Virgin Islands. The Supreme Court ruled in 2009 that marijuana use in Argentina is legal for individuals to use privately and in small amounts.
Medicinal Benefits of Cannabis is Driving Market Growth
Stress and anxiety are reduced, and sleep difficulties are treated with cannabis oil. As more patients choose cannabis oils over flowers, the market for cannabis oils is anticipated to grow over the projected period. According to the National Center for Biotechnology Information, 62% of the world's population suffers from chronic diseases, and CBD extract is used to treat them (NCBI). On the other hand, depression is a common mental disorder. Around 5.0% of adults worldwide are thought to experience depression. The leading cause of disability in the world, depression, adds greatly to the disease burden.
Cannabis Extraction Market: Restraints
Strict Regulations in Emerging Economies and Fluctuating Costs to Hamper Market Growth
Two major problems limiting the industry's expansion are stringent regulatory bodies' prohibitions and the variable costs of cannabidiol products. The lack of legalization initiatives in many Asian and African countries is also a significant barrier to the market's growth.
Cannabis Extraction Market: Segment Overview
Oil Segment Dominate Market due to its Various Medicinal Advantages
In 2021, the oil industry's revenue share was the highest at 63.0%. The advantages of cannabis and its derivatives are also widely accepted. For instance, drug stores teach people about the advantages and disadvantages of marijuana use and the human body's normal limits in Canada. Cancer-related nausea and vomiting are treated with oils made from cannabis. Stress and anxiety are reduced, and sleep difficulties are treated with cannabis oil. As more patients choose cannabis oils over flowers, the market for cannabis oils is anticipated to grow over the projected period. The most trustworthy cannabinoids come from isolates and extracts obtained through isolation. These isolates also offer several advantages that have increased their popularity over time. Due to the low/no THC level, their purest form of expression tests negative for THC and has no psychoactive effects.
With Increased Demand for Cannabis, Marijuana Category Dominated Market
With an 84.2% revenue share in 2021, marijuana is projected to increase at the quickest CAGR during the projection period. The medicinal value of this market is what is responsible for its expansion. The THC chemical in marijuana that makes users feel high is one of more than 100 active components in the plant. In contrast, the CBD-dominant strain contains little to no THC and has little to no impact on the user's consciousness. Marijuana is primarily used as a pain reliever and widely used to treat depression, tension, and anxiety. The use of marijuana for recreational and medical purposes is becoming more widely accepted, which is helping the market expand. The demand for cannabis products is rising, and this trend is further fueled by rising R&D spending on cannabis extract. Dravet syndrome, a type of difficult-to-control childhood epilepsy, responds extremely well to the CBD-dominant cannabis strain. For instance, the Stanley brothers crossed a strain of marijuana with industrial hemp to create Charlotte's Web, successfully treating Dravet's syndrome. This strain generates more CBD and less THC.
Cannabis Extraction Market: Regional Landscape
North America to Dominate Market due to Permitted Usage of Cannabis
In 2021, North America had a large revenue share of 78.9%. Recent data indicates that about 57.0% of American adults favor using marijuana for ailments like pain, inflammation, and cancer treatment. In the US, the use of cannabis for medical purposes is permitted in 33 states, the District of Columbia, and four of the five permanently populated areas. Numerous states, including Colorado, Alaska, Maine, Illinois, Michigan, Massachusetts, Oregon, Nevada, Washington, Vermont), the District of Columbia, and Guam, have legalized cannabis use for recreational purposes. Additionally, fifteen states have decriminalized cannabis in addition to the US Virgin Islands. Thus, factors including the legalization of cannabis, rising public acceptability, and more productive use for therapeutic purposes are encouraging regional market growth.
In a few European nations, cannabis has been employed in the pharmaceutical industry. This is particularly true in Spain, the U.K., Germany, and other nations. The second-largest source of revenue came from Europe. Legalization in Europe, along with stringent laws and rules governing sales and cultivation, could restrain overall growth in Europe and, consequently, the global sector. Potential marijuana markets with future growth potential include Australia, Germany, Poland, Colombia, Uruguay, and Israel.
Global Cannabis Extraction Market: Competitive Landscape
On April 5, 2022, Tilray introduced Solei Bites, the first edible product under the Solei brand and the only ready-to-eat THC edible offered by the Société Québécoise du Cannabis, Quebec's sole licensed dispensary. Additionally, on April 5, 2022, Hemp+ Matcha and Hemp+ Supergreens powders were introduced to more than 300 Whole Foods Market locations across the United States by Manitoba Harvest, a wholly owned subsidiary of Tilray. The Ace Valley brand portfolio was expanded in February 2022 by introducing two additional drinks, Daylight and Moonwave, which are occasion-specific ready-to-drink THC and CBD-infused beverages.
Few of the players in the Cannabis Extraction Market include Canopy Growth Corporation, Aurora Cannabis Inc., Tikun Olam, Cannabis Science Inc., Aphria Inc., Maricann Group Inc., Tilray Inc., VIVO Cannabis Inc., Medical Marijuana, Inc., STENOCARE, Cronos Group Inc., Terra Tech Corp., MedMen, Teva Pharmaceutical Industries Ltd., and Organigram Holdings Inc.
Regional Classification of the Global Cannabis Extraction Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Cannabis Extraction Market
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