March 5, 2024
Cannabis Extract Market

The Cannabis Extract Market Is Driven By Increasing Medical Applications

The cannabis extract market encompasses extracts derived from the cannabis sativa plant species, which include products like cannabis-infused oils, tinctures, and edible applications due to their various medical advantages. Cannabis extracts contain cannabinoids like THC and CBD that are known to provide relief from chronic pain, anxiety, epilepsy, and other medical conditions. As traditional prescription drugs often have adverse side effects, many patients are switching to alternative treatment options like cannabis extracts.

The global Cannabis Extract Market is estimated to be valued at US$ 12331.66 Bn in 2024 and is expected to exhibit a CAGR of 23% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the cannabis extract market is the growing demand for CBD-infused topicals and cosmetics. Oils, lotions, salves and cosmetic products infused with CBD are gaining significant popularity due to its anti-inflammatory and pain-relieving properties. Several cannabis extract manufacturers are launching new topical products targeting consumers looking for relief from muscle soreness, arthritis pain and skin conditions like acne and eczema. As regulations on cannabis extracts continue to loosen in various countries and states, the production and availability of different cannabis-derived topical and skincare products is expected to increase substantially over the coming years.

Porter’s Analysis

Threat of new entrants: Low capital requirements pose a threat of new players entering the market. However, government regulations on cannabis make the market difficult for new players to capture large market shares.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. However, a rise in demand is driving up the number of buyers who prefer cannabis extract over other alternatives.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to the presence of a large number of suppliers. However, requirements for specialized equipment and expertise limits the number of players who can supply cannabis extract.

Threat of new substitutes: Substitutes like hemp-derived CBD, ayurvedic products pose a low threat as cannabis extract offers relief for severe medical conditions. However, high costs limit its use as a mass-market product.

Competitive rivalry: Intense as players compete based on innovation, product quality, and brand reputation.

Key Takeaways

The Global Cannabis Extract Market Share is expected to witness high growth over the forecast period.

Regional analysis: Europe is anticipated to be the fastest-growing regional market owing to increasing social acceptance and a favorable regulatory environment. Countries like Germany have emerged as major export hubs. On the other hand, regions like the Asia Pacific are projected to provide lucrative opportunities during the forecast period with countries like Israel, Australia, and Malaysia formulating conducive regulations.

Key players: Key players operating in the Cannabis Extract Market are Zeta Global Corp, Oracle Corporation, mParticle Inc., Salesforce.com Inc., BlueConic, Adobe Inc., Tealium, SAP SE, Acquia Inc., and Segment.Io Inc. (Twilio). Players are focusing on investments in R&D to launch innovative product types and formats. Partnerships with regional suppliers and distributors are helping them to strengthen geographic footprints.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it