Cannabis Extract Market: Top Firms Leveraging Technology for Product Quality

The global cannabis extract market size was valued at USD 3.5 billion in 2022 and is projected to reach USD 15.5 billion by 2030, growing at a compound annual growth rate (CAGR) of 20.0% from 2023 to 2030. Market growth is being driven by the rising demand for cannabis extracts such as oils and tinctures, alongside the increasing legalization of marijuana for treating chronic conditions including arthritis, Alzheimer’s, anxiety, and cancer.

The cannabis industry is expanding as awareness of its therapeutic benefits grows. In many regions, decriminalization and legalization of medical cannabis have reduced black-market activities as consumers increasingly prefer legally regulated products for medical purposes. Beyond smoking, extracts such as tinctures and oils are widely used in edibles and topicals, offering effective treatment for conditions like nausea, cancer, and mental health disorders, while also serving recreational purposes such as vaping. Regulations for cannabis extracts are typically more favorable compared to those for dried flower products, further fueling industry growth.

The prevalence of chronic illnesses such as cancer and diabetes continues to rise, boosting the demand for cannabis extracts. According to the American Cancer Society, about 1.9 million new cancer cases were expected in the U.S. in 2022. Meanwhile, the World Health Organization (WHO) reports that 2.5% of the global population consumes cannabis annually, supporting a growing market for CBD. Additionally, the National Center for Biotechnology Information (NCBI) highlights that CBD extracts are used to treat up to 62% of the global population affected by chronic illnesses. Depression, affecting approximately 5% of adults worldwide, remains one of the most common mental health conditions and a leading cause of disability, further driving the relevance of cannabis-based treatments.

Despite these growth opportunities, the market faces challenges such as limited awareness in emerging economies and strict regulatory environments governing CBD usage. Nonetheless, the increasing prevalence of chronic diseases and continued clinical studies validating the benefits of cannabis extracts are expected to accelerate market adoption.

Key Market Trends & Insights

• Regional dominance: North America accounted for 78.5% of global revenue in 2022.
• By product type: Oils led the market, holding a 62.8% revenue share in 2022.
• By source: Marijuana-based extracts dominated with 83.5% of revenue in 2022.
• By extract type: Full-spectrum extracts held the largest share at 70.7% in 2022.

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Market Performance

• 2022 Market Size: USD 3.5 Billion
• 2030 Projected Market Size: USD 15.5 Billion
• CAGR (2023–2030): 20.0%
• North America: Largest market in 2022
• Middle East & Africa: Fastest-growing region

Competitive Landscape

Cannabis extracts are increasingly being used to treat chronic conditions, driving rapid adoption across global markets. The competitive environment is intense, with companies focusing on expanding product portfolios, entering untapped regions, and broadening consumer reach.

Legalization of medical cannabis in many European and Asian countries is further propelling growth, with early market entrants poised to strengthen their presence. Strategic initiatives such as mergers and partnerships are reshaping the industry landscape. For example, TerraTech Corp and Unrivaled Brands merged to create a vertically integrated cannabis company, aiming to deliver next-generation cannabis products and experiences.

Key Companies

• Tikun Olam
• Canopy Growth Corporation
• Tilray
• Aurora Cannabis
• The Cronos Group
• Maricann Inc.
• Organigram Holdings Inc.
• Aphria Inc.

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Conclusion

The global cannabis extract market is poised for robust growth, supported by widespread legalization, rising consumer awareness, and growing use of cannabis extracts in managing chronic illnesses. While regulatory challenges and knowledge gaps remain in developing regions, increasing investments, product innovation, and global expansion strategies are expected to drive sustained momentum in the years ahead.