Cannabis Extract Market Size, Share & Trends Analysis Report By Product Type (Oil, Tinctures), By Extract Type (Full Spectrum Extracts, Cannabis Isolates), By Sources (Hemp. Marijuana), By End Use, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030

According to Nova one advisor, the global Cannabis Extract market size is evaluated at USD 3. 3.20 billion in 2022 and is expected to hit around USD 15.50 billion by 2030, growing at a CAGR of 20.18% from 2022 to 2030. 

Key Takeaways:

• The growing cannabis legalization in several nations, demand for cannabis oil and tinctures, and the use of medical marijuana to treat chronic ailments are the factors expected to drive the growth of the industry
• The oil segment dominated with a revenue share of 64.0% in 2022, owing to the product's rising medical applications, simplicity of availability, and low price
• The full spectrum segment held the leading revenue share of 70.7% in 2022. The entourage effect-a synergistic link between cannabinoids and terpenes that increases each cannabinoid's therapeutic properties-is one of the key factors boosting segment share
• Based on source, marijuana held the highest revenue share in 2022 and is also expected to register the fastest CAGR over the forecast period
• North America accounted for the highest revenue share of 79.9% in 2022, owing to increased product uptake and usage due to marijuana legalization in the region

The growth is attributed to the rising usage of cannabis for recreational and medical purposes has increased. Various nations have legalized cannabis usage which has reduced the sale in the black market and increased legal product purchases.

The industry has also opened revenue-generating opportunities for various countries through government-imposed taxes on cannabis oil and tinctures that are commonly used to treat various ailments, including anxiety, nausea, and cancer. The rising prevalence of cancer is also a significant factor. The growing burden of chronic pain has also increased the demand for treatments related to pain management and thus, positively impacting the growth.

Based on product type, the oil segment held the largest revenue share of 63.0% in 2021 and is also expected to grow at the fastest rate. The product's rising medical application is one of the supporting aspects. Based on the extract, the full spectrum segment dominated with a revenue share of 69.7% in 2021. The segment has been exploding in the overall market expansion due to the increased usage of marijuana for medical and recreational applications. Legalizing marijuana has resulted in increased product purchases through legal channels, reducing black market sales in several nations.

North America held the largest revenue share of 78.9% in 2021. The legalization of cannabis extract in many sectors, such as pharmaceutical and other industries, has increased demand for the product throughout North America, particularly in the United States.

The economic downturn brought on by the COVID-19 pandemic has affected every industry. The cannabis industry went through a series of testing. As industries seek to position themselves through the coronavirus pandemic or even beyond whenever the pandemic scenario is finally resolved, commercial contracts, financials, and customers’ responses are being scrutinized more than ever. But the pandemic also provided an opportunity for numerous manufacturers to streamline their operational models, eliminate inefficiencies, and rethink their launch or expansion plans.

Report Scope of the Cannabis Extract Market

Report Coverage	Details
Market Size	USD 15.50 Billion by 2030
Growth Rate	CAGR of 20.18% from 2022 to 2030
Largest Market	Asia Pacific
Fastest Growing Market	North America
Base Year	2021
Forecast Period	2022 to 2030
Segments Covered	Product type, extract type, sources, end-use and Region,
Companies Mentioned	Tikun Olam; CANOPY GROWTH CORPORATION; Tilray; Aurora Cannabis; The Cronos Group; Maricann Inc.; Organigram Holdings Inc.; Aphria Inc.

 

Product Type Insights

The market is divided into tincture and oil segments based on product type. The oil sector held the largest revenue share of 64.0% in 2021. Furthermore, the benefits of cannabis and its derivatives are widely perceived. For instance, individuals in Canada are educated about the benefits and bad effects of smoking marijuana and the human body's reasonable limits by the drug stores themselves. Cannabis-derived oils are used to relieve nausea and vomiting brought on by cancer.

Cannabis oil aids in the treatment of sleep disorders and the reduction of stress and anxiety. The market for cannabis oils is expected to rise over the forecast period owing to a significant increase in the number of patients who prefer oil to flowers. The cannabinoids in isolates collected through isolation and extracts are the most reliable. Furthermore, these isolates have a number of benefits that have led to their growing adoption throughout time. Their truest expression tests negative for THC and has no psychoactive impact because of the low/no THC level.

Cannabis tinctures are made by dissolving the substance in alcohol and are taken sublingually. Tinctures can begin functioning in as little as 15 minutes, whereas oils can take up to 45 minutes to begin working. As a result, tincture demand is predicted to increase significantly over the projection period. The tinctures category is expected to grow at the highest rate. The product demand is expected to be driven by healthcare practitioners’ changing perspectives on safer ingesting approaches such as oral intake, beverages, or gummies.

Due to rapid growth in end-use industries such as medicines, nutraceuticals, cosmetics, drinks, and consumables, the majority of companies have begun to increase their extract portfolios. These items are advertised with detailed details on them. For medical purposes, these products are offered with particular information on the content of THC and CBD, or solely CBD.

Source Insights

Based on source, the market is segmented into marijuana and hemp. Among them, marijuana held the highest revenue share of 85.2% in 2022 and is also expected to grow with the fastest CAGR value in the forecast period. The growth of this segment is attributed to its medicinal value. Marijuana contains more than 100 active compounds out of which THC chemical causes the high, whereas, the CBD-dominant strain has little or no amount of THC and thus, has little or no effect on the consciousness of the user.

Marijuana is highly used for treating anxiety, stress, and depression and is majorly used as a pain reliever. Growing acceptance of marijuana for medical and recreational activities are positively impacting the market growth. Factors such as the growing awareness about cannabis products and increasing R&D activities in cannabis extract are further driving the growth.

Childhood epilepsy known as Dravet syndrome is difficult to control but responds intensely well to the CBD-dominant strain of cannabis. For instance, Charlotte’s Web, effective in Dravet’s syndrome, was developed by the Stanley brothers by crossing industrial hemp with a strain of marijuana. This variety produces more amount of CBD and less THC.

Hemp is also expected to showcase lucrative growth over the forecast period as it is highly used for high cholesterol, constipation, arthritis, and others. Hemp contains a small amount of THC of less than 0.3%, even the 2018’s Farm Bill contains a specific definition of hemp versus cannabis where the THC content is limited to 0.3%. Growing usage of hemp by industries is expected to drive the market in the forecast period.

Extract Type Insights

The global market is divided into two types of extracts, namely, full-spectrum and isolates. The full-spectrum extract contains the entire range of cannabinoids taken from a cannabis plant. The segment held the largest share of 70.7% in 2022. Apart from CBD, there are over 100 additional cannabinoids that exist in their natural forms. Full-spectrum extracts provide an entourage effect, which is a collaborative link between terpenes and cannabinoids that enhances the therapeutic qualities of cannabinoids due to their availability.

Cannabis isolates obtained through isolation and extraction are the most dependable forms of their cannabinoids. They offer fewer health advantages than full-spectrum cannabis extracts. Furthermore, these isolates have several advantages that have led to their increased acceptance throughout time. Because of the low/no THC content, their truest expression tests negative for THC and has no psychoactive effect.

Regional Insights

North America accounted for a high revenue share of 79.9 % in 2022. According to recent statistics, around 57.0% of adults in the United States support the use of marijuana for medical purposes such as pain, inflammation, and cancer therapy. As a result, factors such as cannabis legalization, greater citizen acceptance, and rising product use for therapeutic purposes are promoting regional market growth.

Cannabis has been used in the pharmaceutical business in a few European countries. This is especially true in Spain, the U.K., Germany, and other countries. Europe was the second-largest revenue contributor. However, legalization in European countries, coupled with strict laws and regulations governing sales and cultivation, could limit overall growth in Europe and hence the worldwide industry. Australia, Germany, Poland, Colombia, Uruguay, and Israel are potential marijuana markets, signifying growth potential in the upcoming years. 

Some of the prominent players in the Cannabis Extract Market include:

• Tikun Olam
• CANOPY GROWTH CORPORATION
• Tilray
• Aurora Cannabis
• The Cronos Group
• Maricann Inc
• Organigram Holdings Inc.
• The Cronos Group
• Aphria Inc

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the global Cannabis Extract market

• Product Type
• Oils
• Tinctures
• Extract Type
• Full Spectrum Extracts
• Cannabis Isolates
• Sources
• Hemp
• Marijuana
• End-use
• Medical Use

• Cancer
• Chronic Pain
• Depression and Anxiety
• Arthritis
• Diabetes
• Glaucoma
• Migraines
• Epilepsy
• Multiple Sclerosis
• AIDS
• Amyotrophic Lateral Sclerosis
• Alzheimer’s
• Post-Traumatic Stress Disorder (PTSD)
• Parkinson's
• Tourette’s
• Others
• Recreational Use

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the global Cannabis Extract industry analysis from 2022 to 2030 to identify the prevailing Cannabis Extract industry opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the global Cannabis Extract industry segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global Cannabis Extract industry trends, key players, market segments, application areas, and market growth strategies.