Cannabis extracts are concentrated forms of marijuana or hemp plant extracts that contain substantial amounts of cannabinoids like THC or CBD. Cannabis extracts are increasingly being used for medical purposes to treat conditions like chronic pain, anxiety, epilepsy and others due to their therapeutic properties. The global cannabis extract market is estimated to be valued at US$ 12,331.66 Bn in 2024 and is expected to exhibit a CAGR of 23% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing legalization of cannabis for medical use across various countries as well as increasing adoption of cannabis extracts for various medical ailments pose a major market opportunity. Cannabis extracts are finding increasing demand for pain management, cancer pain and treatment of neurological ailments. As research expands into therapeutic benefits of different cannabis compounds, newer medical applications are expected to emerge. This will significantly boost the demand for standardized and regulated cannabis extracts worldwide. Countries are changing laws to allow import and export of these extracts specifically for medical use which will open up new opportunities.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the cannabis extract market is moderate. Large capital investments are required to build processing facilities and cultivate cannabis on a commercial scale. However, many countries and states have legalized medical and recreational use of cannabis which has increased opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate. Buyers have several options to choose from among established cannabis extract brands and private label products. Buyers can negotiate on price and quality standards with suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate to high. Key raw material for the market is cannabis which is produced by farmers and cultivators. Changes in cannabis crop yields can impact supply and price in the market. Suppliers may shift to other markets with better price offerings.
Threat of new substitutes: Threat of substitutes is low. While cannabis is facing competition from other materials for medical applications, there are limited substitutes that can offer the diverse range of extracts and derivative products from cannabis.
Competitive rivalry: Market competition is high among major global and regional cannabis extract players due to the presence of several fragmented players. Players compete based on product quality, extracts portfolio, innovation, and pricing.
SWOT Analysis
Strength: The cannabis extract market has grown tremendously due to growing medical applications of cannabis, legalization in more countries and states, and rising adoption of CBD-infused products.
Weakness: regulatory restrictions and stigma around cannabis usage continue to limit widespread consumer and medical adoption. Supply chain challenges exist around cultivating and sourcing quality cannabis.
Opportunity: growth prospects to come from new medical discoveries, easy availability through online sales. Edibles and topicals present a large addressable market for infusing cannabis extracts.
Threats: oversupply can weaken prices. Public opinions could still change and lead to re-tightening of laws. Advancements in synthetically manufactured cannabis alternatives pose a threat.
Key Takeaways
The Global Cannabis Extract Market Share is expected to witness high growth at a CAGR of 23% during the forecast period from 2024 to 2031.
Regional analysis shows that North America currently dominates the cannabis extract market owing to legalization of cannabis in major countries of the region like the U.S and Canada. The Asia Pacific region is expected to be the fastest growing market led by countries like Australia, Thailand, South Korea where medicinal use of cannabis is gaining acceptance.
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). The major players are focusing on enhancing their product portfolio with new derivatives, forming strategic partnerships, and expanding to emerging markets to strengthen their market share.
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https://www.ukwebwire.com/cannabis-extract-market-analysis-size-share-growth-outlook-2023/
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