Cannabis Extract Market Size to Exceed USD 45.32 Bn by 2032

The Cannabis Extract Market, estimated at USD 14.56 Bn in 2025, is expected to exhibit a CAGR of 17.6% and reach USD 45.32 Bn by 2032.

The market growth is driven by increasing demand for innovative and effective drugs across diverse therapeutic areas. Advances in drug discovery, biopharmaceuticals, and digital technologies are improving treatment outcomes and operational efficiency. Supportive regulations, rising R&D investments, and a strong focus on patient-centric care are creating new opportunities for pharmaceutical companies.

Market Dynamics:

The growth of the cannabis extract market is primarily driven by the increasing demand for legalized marijuana and a surge in therapeutic applications of cannabis extracts. According to recent studies, over 90% of Americans now support the legal use of marijuana for medical purposes. This has encouraged several states to allow the medical use of marijuana, thereby boosting the demand for cannabis extracts. Secondly, the pharmaceutical industry has shown immense interest in cannabis extracts due to their therapeutic benefits. Cannabis extracts have shown potential in treating several health issues such as chronic pain, neurological disorders, cancer, and mental illnesses. This is expected to significantly propel the pharmaceutical application of cannabis extracts over the forecast period.

Growing Medical Cannabis Acceptance is Driving the Market

The acceptance of medical cannabis is growing significantly around the world as more clinical research demonstrates its effectiveness in treating various medical conditions such as chronic pain, epilepsy, Parkinson's disease, and mental illnesses. Many countries like Canada, Germany, Italy, Australia, and several U.S. states have legalized medical cannabis which has increased the demand for cannabis extracts that can be easily incorporated into drugs, supplements, and topical products. This growing acceptance of cannabis for medical use is a major driver boosting the cannabis extract market.

Rising Interest in CBD Products is Fueling Market Growth

Cannabidiol or CBD, one of the main extracts of cannabis, is garnering huge interest from both pharmaceutical companies and consumers for its potential therapeutic benefits without the psychoactive effects of THC. CBD is showing promise for treating conditions like anxiety, depression, acne, and epilepsy. Many CBD products in the form of oils, edibles, pills, and creams are becoming available both online and in retail stores. The rising popularity of CBD-infused products is propelling significant growth in the cannabis extract market.

Strict Regulations on Cannabis Cultivation and Production

Though regulations are easing in some parts of the world, cannabis cultivation and production are still tightly regulated in many countries and states. Obtaining licenses, meeting safety and purity standards, and other compliance issues make it difficult for small businesses to enter the market. Strict regulations increase operational costs for companies and create supply hurdles, restraining broader market expansion.

Lingering Social Stigma Around Cannabis Usage

Despite increasing acceptance, cannabis usage still faces social stigma in conservative societies. The perception of cannabis as a gateway drug prevents some people from using cannabis extracts therapeutically. Establishing cannabis as a legitimate medical solution and changing public opinion remains challenging due to decades of anti-cannabis propaganda. The social stigma, to some extent, discourages demand growth in the cannabis extract industry.

Potential in Developing New Delivery Formats

Research is exploring different delivery formats for cannabis extracts to improve bioavailability, onset of action, and stability. Delivery methods under investigation include transdermal patches, sublingual strips, nano-particles, encapsulation in liposomes, and more. Successful innovation in delivery systems would unlock new opportunities in segments like pharmaceuticals, functional foods, and cosmetic products using cannabis extracts.

Scope for Export Growth in Expanding Markets

While domestic markets are growing, many Canadian licensed producers are eyeing international expansion into emerging medical cannabis markets in Europe, Latin America, Asia, and Africa. As more countries legalize medical cannabis, there will be huge export opportunities for Canadian companies to tap the global demand for high-quality cannabis extracts. Strategic partnerships and M&A could help Canadian businesses scale up their global footprint.

Link: https://www.coherentmarketinsights.com/market-insight/cannabis-extract-market-4927

Key Development

• On March 14, 2024, Tilray Brands Inc., a global leader in the cannabis industry, announced that they had launched Tilray Oral Solution THC 5 CBD 20 in Potugal
• In April, 2022, Manitoba Harvest, a wholly-owned subsidiary of Tilray, launched Hemp+ Matcha and Hemp+ Supergreens powders at 300 plus Whole Foods Market locations nationwide in U.S.
• In February 2022, Canopy Growth Corp, a cannabis company announced the extension of the Ace Valley brand portfolio, with the launch of two new beverages Daylight and Moonwave, which are occasion-based ready-to-drink THC and CBD-infused drinks.

Key Players: Canopy Growth Corporation, Aurora Cannabis Inc, Tikun Olam, Cannabis Science Inc., Aphria Inc., Maricann Group Inc., Tilray Inc., VIVO Cannabis Inc., Medical Marijuana, Inc., STENOCARE, Cronos Group Inc., Terra Tech Corp., MedMen, Teva Pharmaceutical Industries Ltd, and Organigram Holdings Inc.