Cannabis Extraction
Cannabis Extraction Market by Method (Alcohol Extraction Method, CO2 Extraction Method, Hydrocarbon Extraction Method), End-Use (Cosmetics, Food & Beverages, Medicine) - Global Forecast 2024-2030
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[195 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.

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.

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
    • 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

    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.

Market Disruption Analysis

The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Cannabis Extraction Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Cannabis Extraction Market.

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.

Value Chain & Critical Path Analysis

The value chain of the Cannabis Extraction Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.

Pricing Analysis

The pricing analysis comprehensively evaluates how a product or service is priced within the Cannabis Extraction Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Cannabis Extraction Market.

Technology Analysis

The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Cannabis Extraction Market.

Patent Analysis

The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Cannabis Extraction Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.

Trade Analysis

The trade analysis of the Cannabis Extraction Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.

Regulatory Framework Analysis

The regulatory framework analysis for the Cannabis Extraction Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.

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. [Published On: 2023-06-14]

  • 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: 2023-06-12]

  • 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: 2023-06-06]

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..

Cannabis Extraction Market - Global Forecast 2024-2030
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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

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 Method
  7. Cannabis Extraction Market, by End-Use
  8. Americas Cannabis Extraction Market
  9. Asia-Pacific Cannabis Extraction Market
  10. Europe, Middle East & Africa Cannabis Extraction Market
  11. Competitive Landscape
  12. Competitive Portfolio
  13. List of Figures [Total: 20]
  14. List of Tables [Total: 206]
  15. List of Companies Mentioned [Total: 32]
Decoding the Cannabis Extraction Market: Investment Prospects and Collaborative Market Landscape
December 17, 2023
Decoding the Cannabis Extraction Market: Investment Prospects and Collaborative Market Landscape
Over the past few years, the cannabis industry has grown exponentially, thanks to the increasing acceptance and legalization of cannabis in several countries. Cannabis consumption has evolved from smoking to various other forms, such as edibles, tinctures, and topicals. This shift in consumption patterns has led to the growth of the cannabis extraction market. Cannabis extraction refers to the process of extracting cannabis compounds like THC and CBD from the plant material and processing them into usable forms. The cannabis extraction market is set to experience significant growth over the next few years, making it an attractive investment prospect for investors looking to capitalize on this growing market.

Rising Demand for Cannabis Oils and Extracts:

One of the major drivers of the cannabis extraction market is the rising demand for cannabis oils and extracts. The growing popularity of cannabis-infused products like edibles, beverages, and topicals has led to an increase in demand for high-quality cannabis extracts.

Moreover, cannabis oils and concentrates have several advantages over traditional smoking methods. They are easier to measure, store, and consume and provide a controlled dosage of cannabinoids, making them a preferred choice for medical users.

Investment Prospects and Collaborative Market Landscape:

As the legalization of cannabis continues to spread across the globe, the cannabis extraction market is set to experience significant growth. This growth presents an attractive investment prospect for investors looking to capitalize on the expanding cannabis industry.

Collaboration is also becoming a key factor in the cannabis extraction market. Many cannabis companies are collaborating with extraction equipment manufacturers to develop new and innovative extraction methods. Additionally, collaborations between cannabis companies and pharmaceutical companies are also increasing, intending to develop new cannabis-based medicines.

Challenges and Roadblocks:

While the cannabis extraction market presents an attractive investment prospect, it is not without its challenges. One of the major challenges is regulation. The regulatory landscape for cannabis varies from country to country, making it difficult for companies to navigate the market.

Another challenge is the cost of entry. The high cost of cannabis extraction equipment makes it challenging for smaller players to enter the market, leaving the market dominated by a few large players.

Overall, the cannabis extraction market presents an attractive investment prospect owing to the growing demand for cannabis oils and extracts. However, regulatory challenges and the high cost of entry have created barriers for new entrants.

Collaborative efforts between cannabis companies, equipment manufacturers, and pharmaceutical companies will be crucial in developing new and innovative extraction methods and products. Additionally, government regulations need to be more streamlined to ensure a level playing field for all companies in the cannabis industry.

As the cannabis industry continues to evolve, the cannabis extraction market is set to experience significant growth, making it a promising investment opportunity for the future.

Frequently Asked Questions
  1. How big is the Cannabis Extraction Market?
    Ans. The Global Cannabis Extraction Market size was estimated at USD 3.82 billion in 2023 and expected to reach USD 4.43 billion in 2024.
  2. What is the Cannabis Extraction Market growth?
    Ans. The Global Cannabis Extraction Market to grow USD 11.66 billion by 2030, at a CAGR of 17.26%
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