Cannabis Extraction Market Analysis and Global Forecast 2023-2033

Cannabis Extraction Market Overview

The Cannabis Extraction Market Size is expected to reach USD 35.10 Billion by 2033. The Cannabis Extraction industry size accounted for USD 9.68 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 15.74% from 2023 to 2033. The cannabis extraction market involves the process of obtaining valuable compounds, such as cannabinoids and terpenes, from cannabis plants. This market has grown rapidly due to increasing legalization and demand for cannabis-based Types, including oils, edibles, and topicals. Extraction methods like CO2 extraction, ethanol extraction, and hydrocarbon extraction are commonly used. The market is driven by advancements in extraction technologies, regulatory changes, and rising consumer interest in health and wellness Types. Companies in this market focus on producing high-purity extracts for both medical and recreational use.

Global Cannabis Extraction Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic has led to supply chain disruptions leading to supply shortages or lower demand in the Cannabis Extraction market. The travel restrictions and social-distancing measures have resulted in a sharp drop in consumer and business spending and this pattern is to continue for some time. The end-user trend and preferences have changed due to the pandemic and have resulted in manufacturers, developers, and service providers to adopt various strategies to stabilize the company.

Cannabis Extraction Market Dynamics

The major factors that have impacted the growth of Cannabis Extraction are as follows:

Drivers:

Ø  Technological Advancements

Innovations in extraction technologies, such as supercritical CO2 extraction, ethanol extraction, and hydrocarbon extraction, have revolutionized the industry. These methods improve the efficiency, safety, and purity of cannabis extracts. The development of more sophisticated and scalable extraction equipment also supports larger Typeion capacities, meeting the growing market demand.

Restraint:

• Technological Complexity and Skilled Labor Shortage

The sophisticated nature of cannabis extraction technologies necessitates a high level of expertise and technical know-how. There is a growing demand for skilled professionals who can operate and maintain advanced extraction systems, develop new extraction methods, and ensure Type quality. The shortage of adequately trained personnel can impede the efficiency and scalability of extraction operations.

Opportunity:

⮚      Development of New Extraction Technologies

Innovations in extraction technologies offer substantial opportunities for improving efficiency, yield, and quality of cannabis extracts. Advanced methods such as supercritical CO2 extraction, cryo-ethanol extraction, and ultrasound-assisted extraction can produce higher purity Types with better cannabinoid and terpene profiles. Continued research and development in this area can lead to more cost-effective and scalable extraction solutions, driving market growth.

Cannabis Extraction Segment Overview

By Type

Based on Type, the market is segmented based on Dry-Sieve Extraction, Water Extraction, Rosin Press Extraction, Isopropyl Oil or Quick-Wash ISO Extraction. In the cannabis extraction market, the rosin press extraction method dominates due to its simplicity, efficiency, and ability to produce high-quality concentrates without the use of solvents. Additionally, the isopropyl oil or quick-wash ISO extraction method holds a significant share, favored for its speed and cost-effectiveness in extracting cannabinoids and terpenes from cannabis plant material.

By Application

Based on Applications, the market has been divided into the Food, Medicine, Cosmetics, Others. In the cannabis extraction market, the medicine segment dominates due to increasing acceptance of cannabis-based therapies for various medical conditions, driving demand for high-quality extracts tailored for medicinal use. Additionally, the food segment holds a significant share, driven by the popularity of cannabis-infused edibles and beverages, catering to the growing demand for alternative consumption methods and novel culinary experiences.

Global Cannabis Extraction Market Regional Analysis

Based on region, the global Cannabis Extraction market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Cannabis Extraction market followed by the Asia-Pacific and Europe regions.

Cannabis Extraction North America Market

North America holds a dominant position in the Cannabis Extraction Market. In North America, the cannabis extraction market is witnessing rapid growth fueled by increasing legalization and acceptance of cannabis for both medical and recreational use. The United States and Canada lead the region’s market, with established regulatory frameworks supporting the cultivation, processing, and sale of cannabis and its derivatives. Technological advancements in extraction methods such as CO2 extraction and ethanol extraction are driving innovation and Type development. Moreover, the region’s robust consumer demand for a diverse range of cannabis Types, including oils, concentrates, edibles, and topicals, further propels market expansion.

Cannabis Extraction Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Cannabis Extraction industry. In the Asia-Pacific region, the cannabis extraction market is in its nascent stage, primarily due to stringent regulations and cultural attitudes towards cannabis. However, shifting perceptions towards medical cannabis and increasing awareness of its potential therapeutic benefits are driving gradual market growth. Countries such as Australia, New Zealand, and Thailand have made strides in legalizing medical cannabis and exploring opportunities in the extraction industry. Additionally, emerging markets like India and South Korea are showing potential for future market expansion as attitudes evolve and regulatory frameworks develop. Despite challenges, the Asia-Pacific region presents untapped opportunities for cannabis extraction companies willing to navigate regulatory complexities and seize early-mover advantages.

Competitive Landscape

The global Cannabis Extraction market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as Type launches, and strategic alliances.

Prominent Players:

• Decibel Cannabis Company
• MediPharm Labs Corp
• Valens Company
• C21 Investment Inc
• Halo
• Peridot Labs
• Neptune Wellness Solutions Inc.
• World-Class Extractions.
• Indiva
• RADIANT TECHNOLOGIES

Key Development

In September 2022, Neptune Wellness Solutions Inc., a leading cannabis extraction company, announced strategic partnerships and acquisitions to expand its Type portfolio and market presence, positioning itself for accelerated growth in the cannabis extraction market.

Scope of the Report

Global Cannabis Extraction Market, by Type

• Dry-Sieve Extraction
• Water Extraction
• Rosin Press Extraction
• Isopropyl Oil or Quick-Wash ISO Extraction

 Global Cannabis Extraction Market, by Application

• Food
• Medicine
• Cosmetics
• Others

 Global Cannabis Extraction Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $35.10 Billion
CAGR	15.74% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, Application
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Decibel Cannabis Company, MediPharm Labs Corp, Valens Company, C21 Investment Inc, Halo, Peridot Labs, Neptune Wellness Solutions Inc., World-Class Extractions., Indiva, RADIANT TECHNOLOGIES
Key Market Opportunities	• The rise of e-commerce
Key Market Drivers	• Technological Advancements • Increasing Urbanization .

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Cannabis Extraction market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Cannabis Extraction market historical market size for the year 2021, and forecast from 2023 to 2033
• Cannabis Extraction market share analysis at each Type level
• Competitor analysis with detailed insight into its Type segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including Type launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Cannabis Extraction market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, Type offering, recent developments, SWOT analysis, and key strategies.