Cannabis Extract Market is Estimated to Witness High Growth Owing to Increasing Legalization of Cannabis
Cannabis extracts are concentrated compounds derived from the cannabis plant. Cannabis extracts such as oils, distillates, and isolates contain high levels of cannabinoids such as tetrahydrocannabinol (THC) and cannabidiol (CBD) that provide therapeutic benefits. These extracts find wide applications in the medical industry for treating conditions like chronic pain, arthritis, anxiety, epilepsy and others. The extracts have gained popularity as alternative pain relievers and a safer option compared to opioids.
The global Cannabis Extract Market is estimated to be valued at US$ 10,704.56 Mn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The increasing legalization of medical cannabis across various countries presents a major growth opportunity for the cannabis extract market. According to surveys, over 90% of Americans support the use of medical marijuana and many countries have passed laws for its medicinal use in recent years. This has boosted the demand for cannabis extracts for manufacturing pharmaceutical products. Furthermore, the extracts are being used on an experimental basis for developing new drugs for various therapeutic areas. If successful, these efforts could significantly increase the scale of operations in the cannabis extracts market over the coming years.
Porter's Analysis
Threat of new entrants: The high capital requirements and long approval processes act as deterrents for new companies. There are also strict regulations in most countries which make market entry difficult.
Bargaining power of buyers: Large buyers such as pharmaceutical companies can negotiate lower prices due to their high purchasing power. However, the specialized nature of products limits this power.
Bargaining power of suppliers: Key input producers such as cannabis cultivators and plant extraction companies have moderate bargaining power due to the reliance of manufacturers on their specialized goods and services.
Threat of new substitutes: Potential substitution from synthetic cannabinoids poses a moderate threat, though herbal extracts have fewer side effects.
Competitive rivalry: The industry currently sees moderate competition due to differing regional regulations and varied product ranges among companies.
SWOT Analysis
Strengths: Natural pain relief properties without major side effects gives cannabis extracts an advantage over opioids. Increased legalization is driving higher consumer acceptance.
Weaknesses: Limited standardization and quality control can hamper scale and reliability of supply. Medical claims require extensive clinical research and approvals.
Opportunities: Widening medical applications in conditions like epilepsy, arthritis and sleep disorders point to scope for new product innovation. Further legalization would dramatically increase the addressable market.
Threats: Possibility of tighter regulations or banning in some regions remains. Public perception is still mixed regarding recreational uses.
Key Takeaways
The Global Cannabis Extract Market Size is expected to witness high growth over the forecast period of 2023 to 2030, growing at an estimated CAGR of 17%. This rapid expansion can be attributed to the increasing legalization of medical cannabis across various countries.
North America currently dominates the cannabis extract market, accounting for over 40% revenue share in 2023. Canada and certain U.S. states like Colorado and California are some of the largest cultivators and consumers globally. However, Europe is expected to be the fastest growing region owing to favorable policies being adopted in countries such as Germany, Italy, UK and Spain.
Key players operating in the Cannabis Extract market are 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. The market remains fairly consolidated with these major operators innovating products and expanding globally.
Get More Insights On This Topic: https://www.newswirestats.com/cannabis-extract-market-forecast-outlook-trend-2023-2030/
- Art
- Causes
- Crafts
- Dance
- Drinks
- Film
- Fitness
- Food
- Jocuri
- Gardening
- Health
- Home
- Literature
- Music
- Networking
- Alte
- Party
- Religion
- Shopping
- Sports
- Theater
- Wellness
- IT, Cloud, Software and Technology
English
Arabic
Français
Español
Português
Deutsch
Türkçe
Dutch
Italiano
Russian