Cannabis Extraction

Cannabis Extraction Market by Product Type (Concentrates, Isolates, Oils), Extraction Method (Solvent-Based Extracts, Solventless Extracts), Application, End-Use Industry, Technology, Cannabinoid Profile, Form - Global Forecast 2025-2030

SKU
MRR-4332DEEC66D1
Region
Global
Publication Date
January 2025
Delivery
Immediate
2024
USD 4.43 billion
2025
USD 5.25 billion
2030
USD 11.69 billion
CAGR
17.51%
360iResearch Analyst Ketan Rohom
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The Cannabis Extraction Market size was estimated at USD 4.43 billion in 2024 and expected to reach USD 5.25 billion in 2025, at a CAGR 17.51% to reach USD 11.69 billion by 2030.

Cannabis Extraction Market
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The cannabis extraction industry encompasses methods and technologies used to separate cannabinoids, terpenes, and other compounds from cannabis plants for various applications. As the demand for cannabis products increases globally—driven by the medicinal and recreational legalization initiatives—the need for efficient extraction processes becomes pivotal. These methods include CO2 extraction, ethanol extraction, and hydrocarbon extraction, each offering unique benefits tailored for different end-use products like edibles, oils, topicals, and beverages. Current market growth is fueled by advances in extraction technology that increase yield and purity, consumer trends towards high-quality cannabis concentrates, and expanding medical research that underscores the therapeutic potential of cannabinoids. According to industry forecasts, the cannabis extraction market is set to grow significantly as regulations ease and consumer acceptance expands. However, challenges remain, such as regulatory hurdles, high operational costs, and environmental concerns associated with some extraction methods. Businesses need to stay ahead by focusing on sustainability and efficiency improvements. Opportunities await in expanding into international markets, development of innovative extraction technologies, and diversification into new cannabis-derived products. The rise of water-based and solvent-free extraction methods presents a sustainable innovation frontier. Companies could leverage strategic partnerships and mergers for technology access and market penetration. However, navigating the complex regulatory landscape remains a critical factor that can hinder market expansion. Innovators should focus on improving safety features, reducing environmental impacts, and lowering production costs through automation and smart technology applications. Continuous research into alternative and hybrid extraction methods could reduce costs and meet varying consumer demands, ensuring long-term market viability. A dynamic approach towards flexibility in adapting to regulatory changes and embracing novel methods will be beneficial for sustained growth in the cannabis extraction market.

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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
    • The development of standardized extraction processes enhancing product safety and consistency
    • The booming trend of personalized medicine and its alignment with cannabis-based treatments
    • Evolving consumer preferences towards organic, natural, and sustainably produced cannabis products
  • Market Restraints
    • Understanding the top market restraints impacting the growth and expansion of cannabis extraction
    • Insufficient research and development leading to limited innovation in cannabis extraction processes
    • High taxation and licensing fees adding financial burden to cannabis extraction enterprises
  • Market Opportunities
    • Growing demand for high-quality CBD products opens new avenues in the cannabis extraction sector
    • Collaborative ventures with research institutions can enhance R&D and innovation in extraction methods
    • Partnerships with pharmaceutical companies can boost extraction firms' credibility and market reach
  • Market Challenges
    • Building sustainable supply chains amidst strict cannabis import and export regulations
    • Navigating inconsistent cannabis extraction regulations across various jurisdictions
    • Handling the legal uncertainties surrounding intellectual property in cannabis extraction processes

Market Segmentation Analysis

  • 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.

Porter’s Five Forces Analysis

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Cannabis Extraction Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

PESTLE Analysis

The PESTLE analysis offers a comprehensive tool for understanding and analyzing the external macro-environmental factors that impact businesses within the Cannabis Extraction Market. This framework examines Political, Economic, Social, Technological, Legal, and Environmental factors, providing companies with insights into how these elements influence their operations and strategic decisions. By using PESTLE analysis, businesses can identify potential opportunities and threats in the market, adapt to changes in the external environment, and make informed decisions that align with current and future conditions. This analysis helps companies anticipate shifts in regulation, consumer behavior, technology, and economic conditions, allowing them to better navigate risks and capitalize on emerging trends.

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.

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).

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. [Published On: June 14, 2023]

  • 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. [Published On: June 12, 2023]

  • 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. [Published On: June 06, 2023]

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:

  • Product Type
    • Concentrates
      • Crumble
      • Distillates
        • Broad-Spectrum Distillates
        • Full-Spectrum Distillates
      • Shatter
      • Wax
    • Isolates
      • CBD Isolates
      • THC Isolates
    • Oils
      • Broad-Spectrum Oils
      • CBD Oils
      • Full-Spectrum Oils
      • Hemp Oils
  • Extraction Method
    • Solvent-Based Extracts
      • Butane Extraction
      • Ethanol Extraction
        • Cold Ethanol Extraction
        • Warm Ethanol Extraction
      • Propane Extraction
    • Solventless Extracts
      • Dry Sift Extraction
      • Ice Water Extraction
      • Rosin Press Extraction
  • Application
    • Cosmetics
      • Haircare
        • Conditioners
        • Shampoos
      • Skincare
    • Food & Beverage
      • Cannabutter & Oils
      • Infused Beverages
    • Medical
      • Anxiety & Depression
      • Cancer-Related Therapy
      • Chronic Pain Management
    • Recreational
      • Edibles
      • Vaporized Products
  • End-Use Industry
    • Food & Beverage
    • Personal Care
    • Pharmaceuticals
      • Over-The-Counter
  • Technology
    • Chemical-Free Extraction
      • Heat Processing
      • Water-Based Extraction
    • Mechanical Extraction Techniques
      • Cold Pressing
      • Screw Pressing
    • Nano-Extraction Methods
      • Microencapsulation
      • Nanotechnology
  • Cannabinoid Profile
    • Balanced THC/CBD
    • CBD Dominant
    • THC Dominant
  • Form
    • Liquid Form Extracts
    • Powdered Form Extracts
    • Solid Form Extracts
  • 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

This research report offers invaluable insights into various crucial aspects of the Cannabis Extraction Market:

  1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
  2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
  3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
  4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
  5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

Additionally, the report addresses key questions to assist stakeholders in making informed decisions:

  1. What is the current market size and projected growth?
  2. Which products, segments, applications, and regions offer promising investment opportunities?
  3. What are the prevailing technology trends and regulatory frameworks?
  4. What is the market share and positioning of the leading vendors?
  5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?
Table of Contents
  1. Preface
  2. Research Methodology
  3. Executive Summary
  4. Market Overview
  5. Market Insights
  6. Cannabis Extraction Market, by Product Type
  7. Cannabis Extraction Market, by Extraction Method
  8. Cannabis Extraction Market, by Application
  9. Cannabis Extraction Market, by End-Use Industry
  10. Cannabis Extraction Market, by Technology
  11. Cannabis Extraction Market, by Cannabinoid Profile
  12. Cannabis Extraction Market, by Form
  13. Americas Cannabis Extraction Market
  14. Asia-Pacific Cannabis Extraction Market
  15. Europe, Middle East & Africa Cannabis Extraction Market
  16. Competitive Landscape
Frequently Asked Questions
  1. How big is the Cannabis Extraction Market?
    Ans. The Global Cannabis Extraction Market size was estimated at USD 4.43 billion in 2024 and expected to reach USD 5.25 billion in 2025.
  2. What is the Cannabis Extraction Market growth?
    Ans. The Global Cannabis Extraction Market to grow USD 11.69 billion by 2030, at a CAGR of 17.51%
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