The global market for cannabis extracts is set to expand by over US$19 billion in the next nine years, according to a new research report published by The Brainy Insights.
The Indian market researcher said on Tuesday that the market will be expanding at a compound annual growth rate (CAGR) of 20.4 per cent in the coming years to reach a value of US$23.1 billion by 2032.
The Brainy Insights says the market’s growth will be driven by the demand for alternative methods of cannabis consumption, an increased rate of societal acceptance for medical cannabis and a growing level of public knowledge about the therapeutic benefits of the plant. North America had the largest market share in 2022 at 77.3 per cent.
Evolving extraction techniques have made it possible to formulate extracts of superior quality to those produced in the past, which will also contribute to the market’s growth.
Increasing rates of cannabis legalization and regulation globally will help to propel the market as well as more clinical trials are conducted and more medical-grade extracts subsequently become available.
Europe’s extract market will expand fastest
The market researcher says Europe will register the fastest GAGR globally at 22.3 per cent during the forecast period. This can be largely attributed to the prevalence of cannabis in the medicinal industries of Spain, Germany and the United Kingdom.
Poland, Israel, Australia, Uruguay and Colombia are expected to have future development potential for extract production as well. The Brainy Insights analyzed over 30 countries for its new report.
The marijuana segment of the market consisting of goods such as oils, concentrates and edibles will have the strongest CAGR at 23.2 per cent. This can be attributed to the demand for high-THC products in this segment with strong and rapid euphoric and intoxicating effects.
The full spectrum segment of the market is also expected to have a strong CAGR at 21.8 per cent. Full spectrum extracts are known to have greater therapeutic potential than isolates because they contain all of the compounds present within the plant, according to the cannabis education platform Jointly.
The oil segment of the market is anticipated to have a 21.6 per cent CAGR during the forecast period because of its potential to aid with stress, anxiety and sleep issues. The Brainy Insights says the market’s growth can be partially attributed to a higher rate of consumers choosing oil instead of flower.
Key market players include Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), Cannbit Tikun-Olam Israel (TASE: TKUN), Tilray Brands, Inc. (TSX: TLRY) (NASDAQ: TLRY), Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC) and Maricann Inc.