Cannabis extract market value will inflate to $28.5 billion by 2027

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Bethan Rose Jenkins, Cannabis News Writer/Editorial

Within the next six years, the global cannabis extract market size is forecast to be worth USD$28.5 billion. These projections come courtesy of Grand View Research, Inc., which recently published a report on this growing segment of the legal cannabis industry.

The value of the cannabis extract market is expected to swell at a compound annual growth rate (CAGR) of 16.6 percent over the forecast period. Sweeping legalization of cannabis across much of the globe, including the United States, Canada and certain parts of Europe, is contributing to increased demand.

Furthermore, as product innovation continuously ameliorates, more consumers are seeking out a broad scope of cannabis-based treatments including cannabis oils, tinctures and sprays relieve the symptoms of medical conditions like Alzheimer’s disease, arthritis and anxiety.

Growth of the cannabis extract market is also being stimulated by scientific research into the plant’s medicinal qualities; something that will be further bolstered by the Drug Enforcement Administration (DEA), as it plans to push forward with cannabis grow applications.

Key takeaways from report on the cannabis extract market

Over the last few years, cannabis extracts have attracted widespread recognition and are likely to be a catalyst for industry growth as a whole. Although there is an endless scope of cannabis extract products infiltrating the market, extracts are generally classified into two categories: oils and tinctures.

According to Grand View Research analysts, the oils segment will steer major growth for the market. In 2019, oils generated revenues of USD $4.8 billion. Over the forecast period, oils will see a CAGR of 17.5 percent.

Based on the type of extract, the market is separated into two categories: cannabis extracts and cannabis isolates. In 2019, full spectrum cannabis extracts paved the way for market growth with a revenue of USD$4.3 billion.

Let’s take a look at some key takeaways from this report on the cannabis extracts market:

  • Two years ago, oils secured the largest amount of revenue share – 66.5 percent. This achievement was likely the outcome of low product prices and product availability.
  • Cannabis isolates are predicted to become the second-largest segment over the forecast period.
  • Aphria Inc.; Aurora Cannabis; Canopy Growth Corporation; Maricann Inc.; Organigram Holdings Inc.; Tikun Olam, Ltd.; The Cronos Group and Tilray are highlighted as main players in the cannabis extract market.
  • An incredible USD$4.3 billion was harvested from the full spectrum extract segment in 2019. Analysts believe that this segment’s colossal growth is indicative of the “entourage effect” – a synergistic reaction that occurs when various plant compounds, such as terpenes and cannabinoids, react with one another.

In summary, North America accounted for the greatest share in the worldwide cannabis concentrates market during the year 2019. Analysts believe that this is a result of extensive government approvals across the continent.

You can click here to request a sample copy or summary of this report into the cannabis extract market.