A recent market report has shown that the medical cannabis extract market is set to be worth $23.7 (€21.46~) billion by the year 2025 following a boom in their use.
In 2018 the global cannabis extract market size was estimated at $5.3bn and is projected to exhibit a CAGR of 22.1% growth.
The use of extracts has been increasingly popular in recent years as more health aware patients turn to edibles, topicals and other cannabis extracts instead of smoking or inhalation methods. There has also been an increasing amount of use of medical cannabis for the treatment of chronic diseases such as Alzheimer’s, cancer and arthritis, along with other neurological problems such as epilepsy, anxiety and depression.
The overall cannabis market has been booming due to its increased adoption for medical and recreational purposes and now the cannabis extract market is growing too. Other research shows that the decriminalisation or legalisation of cannabis has led to the decrease of the black market. Further research into cannabis and its health benefits is also changing people’s perception and awareness of the plant and its various medicine forms.
The global legal cannabis market is mainly segmented by product type, species, strains, purchase channel, application, end-use industries, and geography. Based on product type, the global legal cannabis market is segmented into buds, cannabis flower and cannabis extracts. Buds cannabis flower product segment is estimated to command the largest share of the overall legal cannabis market in 2019. The large share of this segment is mainly attributed to the presence of large number of tobacco smokers; however, the cannabis extract market is expected to witness a rapid growth during the forecast period.
On the basis of strains, the overall legal cannabis market is segmented into three major segments, namely THC-dominant, CBD-dominant, and Balanced THC and CBD. With the wide-range medicinal properties, cannabis THC strains can be used to treat health issues such as anxiety, bacterial, cancer, depression, inflammation, nausea. The THC-dominant segment is estimated to account for the largest share of the overall legal cannabis market in 2019 as they are used for treating a variety of ailments including cancer, depression, inflammatory issues and anxiety.
The large share of the medical applications segment of the market is attributed to increasing demand of cannabis for relieving pain in various health conditions such as cancer, AIDS, seizures, and other diseases; and growing research on medicinal cannabis across the globe.
The global legal cannabis market is segmented into different countries – North America, Europe, Asia-Pacific, and the Middle East and Africa – with North America accounting for the largest share.