Cannabis Extract Market Size Projected to Reach USD 18.7 Billion by 2032

“According to a new report published by Introspective Market Research, Cannabis Extract Market by Product Type, Source, and Application, The Global Cannabis Extract Market Size Was Valued at USD 3.6 Billion in 2023 and is Projected to Reach USD 18.7 Billion by 2032, Growing at a CAGR of 20.1% from 2024–2032.”

The Cannabis Extract Market has been witnessing rapid expansion due to increasing legalization of cannabis for medical and recreational purposes across several regions worldwide. Cannabis extracts, derived from cannabis plants, are concentrated forms containing cannabinoids such as CBD and THC, offering enhanced potency, controlled dosage, and versatile application compared to traditional cannabis consumption methods.

Cannabis extracts are widely used in pharmaceuticals, nutraceuticals, cosmetics, food & beverages, and wellness products. Their advantages include higher bioavailability, longer shelf life, and ease of incorporation into various formulations. Medical cannabis extracts are increasingly prescribed for chronic pain, neurological disorders, anxiety, and inflammation, driving consistent demand.

Furthermore, growing consumer awareness regarding the therapeutic benefits of cannabis-based products, coupled with technological advancements in extraction methods such as CO₂ extraction, is fueling market growth. Supportive regulatory frameworks and rising investments in cannabis research are expected to sustain the market’s strong growth trajectory throughout the forecast period.

Market Segmentation

The Cannabis Extract Market is segmented into Product Type, Source, and Application.
By Product Type, the market is categorized into CBD Extracts, THC Extracts, and Full-Spectrum Extracts.
By Source, the market is categorized into Hemp-Based and Marijuana-Based.
By Application, the market is categorized into Medical, Recreational, Food & Beverages, Cosmetics, and Others.

Growth Driver

The primary growth driver for the Cannabis Extract Market is the rapid legalization and acceptance of medical cannabis across major economies. Governments are increasingly approving cannabis-derived products for therapeutic use, particularly for pain management, epilepsy, cancer-related symptoms, and mental health conditions. This regulatory shift has encouraged pharmaceutical companies to invest in cannabis extract-based drug development. Additionally, rising patient preference for plant-based and alternative therapies is further boosting demand for standardized, high-quality cannabis extracts globally.

Market Opportunity

A significant market opportunity lies in the expanding use of cannabis extracts in the food, beverage, and cosmetic industries. CBD-infused beverages, edibles, skincare, and personal care products are gaining traction among health-conscious consumers seeking functional and wellness-oriented products. Moreover, emerging markets in Asia-Pacific and Latin America present lucrative growth opportunities as regulatory barriers gradually ease. Innovations in extraction technologies and product formulations are expected to unlock new revenue streams for manufacturers.

Detailed Segmentation

Cannabis Extract Market, Segmentation

The Cannabis Extract Market is segmented on the basis of Product Type, Source, and Application.

Product Type

The Product Type segment is further classified into CBD Extracts, THC Extracts, and Full-Spectrum Extracts. Among these, the CBD Extracts sub-segment accounted for the highest market share in 2023. This dominance is attributed to widespread acceptance of CBD for medical and wellness purposes, minimal psychoactive effects, and favorable regulatory approvals. CBD extracts are extensively used in pharmaceuticals, dietary supplements, and cosmetics, making them the most commercially viable product category in the market.

Source

The Source segment is further classified into Hemp-Based and Marijuana-Based. Among these, the Hemp-Based sub-segment accounted for the highest market share in 2023. Hemp-based extracts are preferred due to lower THC content, broader legal acceptance, and growing demand for CBD-rich products. These extracts are widely used across medical, food, and cosmetic applications, driving their strong market position.

Some of The Leading/Active Market Players Are-

• Aurora Cannabis Inc. (Canada)
• Canopy Growth Corporation (Canada)
• Tilray Brands Inc. (Canada)
• GW Pharmaceuticals plc (UK)
• Cronos Group Inc. (Canada)
• Aphria Inc. (Canada)
• Medical Marijuana Inc. (USA)
• CV Sciences Inc. (USA)
• Elixinol Global Limited (Australia)
• Maricann Group Inc. (Canada)
• The Green Organic Dutchman Holdings Ltd. (Canada)
• Organigram Holdings Inc. (Canada)
• Charlotte’s Web Holdings Inc. (USA)
• Jazz Pharmaceuticals (Ireland)
• and other active players.

Key Industry Developments

In March 2024, a leading cannabis manufacturer expanded its production capacity to meet rising global demand for medical cannabis extracts.
The expansion included advanced CO₂ extraction facilities and increased R&D investment to develop high-purity cannabinoid formulations for pharmaceutical applications.

In September 2023, a major pharmaceutical company received regulatory approval for a cannabis extract-based drug targeting neurological disorders.
This approval marked a significant milestone, highlighting growing regulatory confidence in cannabis-derived therapeutics and boosting market credibility.

Key Findings of the Study

• CBD extracts dominated the product type segment in 2023
• North America held the largest regional market share
• Legalization of medical cannabis is the key growth driver
• Rising use in food, beverages, and cosmetics is a major trend

More Info:- https://introspectivemarketresearch.com/reports/cannabis-extract-market/

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