Cannabis Extraction Market by Method (Alcohol Extraction Method, CO2 Extraction Method, Hydrocarbon Extraction Method), End-Use (Cosmetics, Food & Beverages, Medicine) - Global Forecast 2024-2030

Cannabis Extraction Market by Method (Alcohol Extraction Method, CO2 Extraction Method, Hydrocarbon Extraction Method), End-Use (Cosmetics, Food & Beverages, Medicine) - Global Forecast 2024-2030

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.

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.

Market Insights

• Market Dynamics
  
  The market dynamics represent an ever-changing landscape of the Cannabis Extraction Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
  • Market Drivers
    • Increased social acceptance, legalized production, and sales of infused products globally
    • Attractive investment prospects and collaborative market landscape
    • Cannabis has been proven non-psychoactive and has increasingly accepted for medical and nutraceutical application
    • Market Restraints
      • Complex cannabis extraction process and limited certification of extraction facilities
      • Market Opportunities
        • Increased availability and adoption of high-tech equipment and the development of scientific methods
        • Collaborating Cannabis industry ecosystem development
        • Pharmaceutical companies and beverage companies eyeing the cannabis industry
        • Market Challenges
          • Heavy taxes imposed on the cannabis industry discourage commercialization
          • Negative social stigma and loosely defined legal framework
          • Market Segmentation Analysis
            • Method: Utilization of varied cannabis extraction methods to ensure safety, purity, and solvent removal
            • End-Use: Increasing uses of cannabis extractions in the pharmaceutical and food & beverage industry in preference to their various health benefits
            • Market Disruption Analysis
            • Porter’s Five Forces Analysis
            • Value Chain & Critical Path Analysis
            • Pricing Analysis
            • Technology Analysis
            • Patent Analysis
            • Trade Analysis
            • Regulatory Framework Analysis
            FPNV Positioning Matrix
            
            The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Cannabis Extraction Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment 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, namely 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 assessment of the current state of vendors in the Cannabis Extraction Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. 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 these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
            
            Recent Developments
            • Verano Launched On The Rocks, New Multi-Format Brand Anchored Around Solventless Extraction Methods, Across Core Markets
              
              Verano Holdings Corp. launched its latest innovation, 'On The Rocks,' a premium collection of solventless cannabis extracts. These meticulously crafted extracts are the epitome of purity and authenticity, designed to deliver the essence of the cannabis plant in its most unadulterated form. This process ensures the collection of the most potent and flavorful trichomes, providing connoisseurs with an unparalleled cannabis experience. Verano's commitment to excellence is reflected in this small-batch, artisanal product line, setting a new standard for quality and taste in the cannabis extract market.
              
              CULTA Signs Definitive Agreement to Acquire Two Dispensaries, Broadening Presence in Maryland
              
              CULTA, a cannabis extraction company, fortifies its market position by strategically acquiring two female-operated dispensaries, Growing Ventures and K&R Holdings. The acquisition of Greenhouse Wellness, in particular, represents a significant stride in enriching its retail footprint and underscores CULTA's dedication to fostering inclusivity within the cannabis industry.
              
              Humble & Fume Inc. Announces Partnership with EvoLife & LocalsOnly Concentrates
              
              Humble & Fume Inc., a distributor in the North American cannabis sector, entered into a significant partnership with EvoLife, the creators behind the esteemed LocalsOnly Concentrate Brand. With this partnership, Humble & Fume Inc. aims to take on the role of exclusive distributor, managing sales and distribution for the current range of EvoLife's high-quality concentrates and any forthcoming products. This partnership is poised to propel the LocalsOnly line of concentrates to a broader customer base, enhancing market presence and fulfilling the escalating consumer demand for premium cannabis extracts.
            Strategy Analysis & Recommendation
            
            The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Cannabis Extraction Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
            
            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
                          
                          
                          Please Note: PDF & Excel + Online Access - 1 Year