by Market Overview:
The global Cannabis Extract Market is estimated to be valued at US$ 9,125.8 million in 2022 and is expected to exhibit a CAGR of 17.3% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights. Cannabis extracts are derived from the cannabis plant and offer numerous advantages over traditional cannabis consumption methods. These extracts provide accurate dosing, improved bioavailability, and a wider range of delivery methods.
The market for cannabis extracts is driven by the growing demand for products associated with medical and recreational marijuana use. The rising prevalence of chronic diseases such as cancer, epilepsy, and multiple sclerosis has led to increased adoption of marijuana-based treatments. Additionally, the expansion of the legalized cannabis industry and favorable regulations worldwide have contributed to the market growth of cannabis extracts.
Market Key Trends:
One significant trend in the cannabis extract market is the increasing demand for CBD (cannabidiol) extracts. CBD extracts offer various health benefits, including pain relief, reducing anxiety and depression, and alleviating cancer-related symptoms. The non-psychoactive nature of CBD extracts makes them appealing to consumers looking for therapeutic effects without the “high” associated with THC (tetrahydrocannabinol).
For example, Tikun Olam, a key player in the cannabis extract market, offers CBD-rich extracts known for their medicinal properties. Their product line includes tinctures, capsules, and vape cartridges, catering to the evolving consumer demand for CBD-based products.
Porter’s Analysis:
– Threat of new entrants:
The threat of new entrants in the cannabis extract market is moderate. The industry requires significant investments in research and development, regulatory compliance, and infrastructure. Existing market players have established brands and customer loyalty, creating barriers to entry for new competitors.
– Bargaining power of buyers:
The bargaining power of buyers in the cannabis extract market is moderate. Although the market is growing, buyers have limited choices due to the strict regulations and quality requirements. Buyers have some power to negotiate prices and demand specific product formulations or strains.
– Bargaining power of suppliers:
The bargaining power of suppliers in the cannabis extract market is moderate. As the demand for cannabis extracts increases, suppliers of raw materials, such as cannabis plants and extraction equipment, have the advantage. However, the presence of multiple suppliers and the expansion of vertically integrated companies mitigate their bargaining power.
– Threat of new substitutes:
The threat of new substitutes in the cannabis extract market is low. Cannabis extracts offer unique advantages over traditional cannabis products, such as precise dosing and diverse delivery methods. These benefits make them preferred options for medical users and individuals seeking alternative consumption methods.
– Competitive rivalry:
The competitive rivalry in the cannabis extract market is intense. Several key players, including Canopy Growth Corporation, Aurora Cannabis Inc., and Tilray Inc., dominate the market. These companies compete based on product quality, innovative formulations, and market presence. Strategic partnerships, mergers, and acquisitions are common strategies employed to gain a competitive edge.
Key Takeaways:
– The global cannabis extract market is expected to witness high growth, exhibiting a CAGR of 17.3% over the forecast period. This growth is driven by the increasing adoption of cannabis-based treatments for chronic diseases.
– North America is the fastest-growing region in the cannabis extract market, primarily due to the legalization of recreational and medical marijuana in several states and countries. The region accounts for the largest market share, supported by established players like Canopy Growth Corporation and Aurora Cannabis Inc.
– Key players operating in the global cannabis extract 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. These companies focus on research and development, strategic collaborations, and product diversification to maintain their market position.
In conclusion, the global cannabis extract market is witnessing substantial growth due to the increasing demand for medical and recreational cannabis-based products. The market is characterized by the rising popularity of CBD extracts, favorable regulations, and intense competition among key players. With ongoing research and development and evolving regulatory landscape, the market is poised for continued growth in the coming years.
