[192 Pages Report] The Cannabis Extraction Market size was estimated at USD 3.82 billion in 2023 and expected to reach USD 4.43 billion in 2024, at a CAGR 17.26% to reach USD 11.66 billion by 2030.
Cannabis extraction is a process used to isolate and concentrate the desirable compounds from the cannabis plant, such as cannabinoids while eliminating unwanted material, including plant waxes and lipids. This extraction typically involves using solvents such as butane, CO2, ethanol, or water, which dissolve the active ingredients from the plant material. The resulting extract is a highly potent substance that can be used in various products, including medicinal remedies, recreational cannabis products, and infused edibles. The increasing need for pharmaceutical and nutraceutical manufacturing and the growing investments propels the demand for cannabis extractions. However, the stringent government regulations associated with cannabis extractions are a significant challenge faced by manufacturers and suppliers. Companies are continuously focusing on complying with international and national regulations and guidelines to remain agile within the landscape. Moreover, the adoption of high-tech equipment in cannabis extractions and the development of novel delivery systems offer a significant opportunity for manufacturers and suppliers.
Method: Utilization of varied cannabis extraction methods to ensure safety, purity, and solvent removal
The alcohol extraction method is a technique that involves solvents such as ethanol to extract the desired compounds from the cannabis plant. It is lauded for its efficiency and purity of the final product but must be conducted carefully to ensure solvent evaporation and to maintain product safety. CO2 extraction uses supercritical carbon dioxide as a solvent to isolate cannabinoids and terpenes. It is highly regarded for its safety, environmental friendliness, and ability to fine-tune the extraction process to target specific compounds. Similarly, involving solvents such as butane and propane, hydrocarbon extraction is well-known for its effectiveness in isolating terpenoids and cannabinoids, resulting in a potent concentrate. On the other hand, the solvent-free extraction Method focuses on mechanical and physical means to obtain cannabis concentrates, avoiding the use of chemical solvents. Techniques such as dry sifting or pressed rosin are common and are highly valued for producing a natural and flavorful product. Traditional methods often employ basic techniques such as the use of cold water or manual pressing to extract essential oils from the cannabis. These methods are less efficient but are simple and have been used for centuries. While the ultrasound-assisted extraction method uses ultrasonic waves to agitate the plant material, facilitating the release of target compounds into the solvent. Ultrasound-assisted extraction is efficient, scalable, and allows for lower temperatures, which can preserve the integrity of heat-sensitive cannabinoids and terpenes.
End-Use: Increasing uses of cannabis extractions in the pharmaceutical and food & beverage industry in preference to their various health benefits
The integration of cannabis extracts, notably cannabidiol (CBD), into the cosmetics industry, has been rapidly growing due to its antioxidant and anti-inflammatory properties. Skincare products, lotions, balms, and oils are increasingly formulated with CBD, offering benefits such as reducing acne, psoriasis, and signs of aging. At the same time, cannabis extractions, particularly CBD and tetrahydrocannabinol (THC), are becoming more prevalent in the production of food and beverages. These products offer various effects, from non-psychoactive wellness benefits associated with CBD to the recreational and medicinal effects of THC. Medicinal cannabis is a critical segment that uses cannabis extracts for the development of pharmaceuticals and therapeutics. It is employed in the management and treatment of chronic pain, epilepsy, multiple sclerosis, and other health conditions. Cannabis extracts are also finding their place in the pet care industry, with CBD being popularised for its potential health benefits for pets. Products such as oils, tinctures, and edible treats are marketed with claims that they can alleviate anxiety, pain, and other conditions in animals.
Regional Insights
In the Americas, particularly in the United States and Canada, the cannabis extraction landscape is rapidly expanding due to the increasing legalization of cannabis for medical and recreational use. The United States remains a significant market with advanced extraction technologies and strong consumer demand for high-quality cannabis products. Canadian companies are also at the forefront, benefiting from nationwide legalization, and are actively investing in research and development. Both countries are witnessing a surge in patents related to solventless extraction methods and purification techniques, along with a growing number of startups receiving substantial investment for scaling production capabilities. At the same time, the European Union (EU) is experiencing an emerging cannabis extraction market as countries such as Germany, the Netherlands, and Portugal are increasingly permitting medical cannabis use. Consumer demand in this region is growing, with an inclination towards products with high purity levels and clear provenance due to stringent EU standards. On the other hand, countries in the Asia-Pacific region, including China, Japan, and India, show a diverse cannabis extraction landscape, with China and Japan establishing a strong position in hemp production and extraction, primarily for textiles and increasingly for cannabidiol (CBD) extraction.
FPNV Positioning Matrix
The FPNV Positioning Matrix is pivotal in evaluating the Cannabis Extraction Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
Market Share Analysis
The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Cannabis Extraction Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Key Company Profiles
The report delves into recent significant developments in the Cannabis Extraction Market, highlighting leading vendors and their innovative profiles. These include Aurora Cannabis Inc., Canopy Growth Corporation, Colorado Cannabis Company, Cronos Group, CURE Pharmaceutical, Dabble Extracts, Decibel Cannabis Co. Inc., Decibel Cannabis Company Inc., Encore Labs LLC, Evolved Extraction Solutions Ltd., Halo Labs Inc., Imperial CBD Extraction, Indiva Limited, Jazz Pharmaceuticals PLC, JULABO GmbH, Kase Manufacturing, Inc., Maricann Inc., Medical Marijuana, Inc., Medipharm Labs Corp., Neptune Wellness Solutions Inc., Nextleaf Solutions, Optimum Extracts, Organigram Holdings Inc., Peak Extracts, Prospiant by Gibraltar Group, Rocky Mountain Extraction Services, LLC, SNDL Inc., STENOCARE A/S, Sugarmade, Inc., Teva Pharmaceutical Industries Ltd., Tikun Olam, and Tilray Brands, Inc..
Market Segmentation & Coverage
This research report categorizes the Cannabis Extraction Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Method
- Alcohol Extraction Method
- CO2 Extraction Method
- Hydrocarbon Extraction Method
- Solvent-free Extraction Method
- Traditional Extraction Method
- Ultrasound-assisted Extraction Method
- End-Use
- Cosmetics
- Food & Beverages
- Medicine
- Pet Care
- Recreational Use
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
The report offers valuable insights on the following aspects:
- Market Penetration: It presents comprehensive information on the market provided by key players.
- Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
- Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
- Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
- Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.
The report addresses key questions such as:
- What is the market size and forecast of the Cannabis Extraction Market?
- Which products, segments, applications, and areas should one consider investing in over the forecast period in the Cannabis Extraction Market?
- What are the technology trends and regulatory frameworks in the Cannabis Extraction Market?
- What is the market share of the leading vendors in the Cannabis Extraction Market?
- Which modes and strategic moves are suitable for entering the Cannabis Extraction Market?
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