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Cannabis extracts entail a wide category of products that includes any extract of the cannabis plant, including extracts from marijuana and hemp. These extracts contain high levels of cannabinoids like CBD and THC, much higher by weight than the dry cannabis flowers, leaves, or stems. Hemp extracts will contain higher levels of CBD, while marijuana extracts have higher levels of THC. The high concentrations of cannabinoids in cannabis extracts mean that one can vape less and less often than if one were to smoke dry flowers. Cannabis extracts are created by passing a solvent through finely ground cured or fresh cannabis material, including the flower, leaves, and stems. When made with fresh flowers, extracts are sometimes called live resin. Common solvents include safe choices like CO2 or solvents like butane, hexane, and more that can be toxic if not properly purged from the extract. Marijuana extracts can also be made by hot pressing fresh or dry marijuana buds, allowing the flower’s oil to squeeze out.
Covid-19 Analysis:
Pharmaceutical and biotech companies together with governments around the globe are working to address the COVID-19 outbreak, from supporting the development of vaccines to planning for medicine supply chain challenges. Currently, around 115 vaccine candidates and 155 molecules are in the R&D pipeline. Moreover, commonly used drugs such as Hydroxychloroquine have witnessed a dramatic surge in demand for the management of COVID-19. Such high demand for these drugs has presented huge opportunities for manufacturers of COVID-19 management drugs, as many developed countries are facing shortage of these drugs. Thus, the pharmaceutical and biotechnology industry is expected to witness a significant growth in the future owing to the demand for vaccine and treatment drugs for COVID-19. This in turn is expected to have a significant impact on the cannabis extract market on those who thought a congregation of shoppers posed a risk of spreading virus affecting sales.
Top impacting factors: Market Scenario Analysis, Trends, Drivers and Impact Analysis:
Growing preference for cannabis extracts such as oils and tinctures, rising legalization of marijuana for treatment of various chronic diseases such as Alzheimer’s, cancer, arthritis and anxiety are key factors promoting market growth. The marijuana industry is booming due to increased awareness of its medical benefits. Decriminalization and/or legalization of medical marijuana in some countries has led to decrease in black market as people are resorting to legal purchasing marijuana for medical use. Cannabis oils land tinctures can be used for manufacturing edible and topical other than smoking. These are generally used for treatment of conditions such as cancer, mental disorder, nausea as well as recreational purpose such as vaping. In terms of legality, laws pertaining to medical marijuana extracts are much more lenient as compared to dried buds which involve smoking.
Drivers:
Increased medicinal use:
The growth of the cannabis extract market can be attributed to the rise in the use of medical marijuana for treating severe ailments like arthritis, cancer, and Alzheimer. Apart from this, cannabis extracts are also used to treat neural disorders including epilepsy, anxiety, and depression.
Legalization in countries:
Additionally, many of the countries in North America and Latin America have legalized use of medical cannabis while some of the European countries are trying to liberalize the laws governing the use of cannabis. This aspect will propel the expansion of the cannabis extract industry across the globe. Moreover, it has been viewed that the taxation on the product will help the government to accrue more income and contribute substantially towards its overall revenue.
Effective Anti-depressant:
Widespread usage of the product as antidepressant across the healthcare and pharma sectors will boost the growth rate of cannabis extract industry over the upcoming years. Apparently, growing need for effectively reducing the pain during the treatment of chronic diseases has triggered humungous demand for the product, thereby not only shaping the growth of the market but also adding new dimensions to it.
Market analysis of extracts:
The cannabis extraction market continues to display strong growth and expansion. While traditional flower sales have had a hold of the top market space for years, cannabis extracts are now closing in and even eclipsing flower sales in some markets. This growth is due to an increased demand for products derived from cannabis extractions alongside new techniques and methods that are making it cheaper and more productive for producers to create a wide array of extracts.
Restrains:
HIV continues to be a major global public health issue, having claimed more than 35 million lives so far. In 2016, 1.0 million people died from HIV-related causes globally. There were approximately 36.7 million people living with HIV at the end of 2016 with 1.8 million people becoming newly infected in 2016 globally. 54% of adults and 43% of children living with HIV are currently receiving lifelong antiretroviral therapy.
On the other hand, depression is also a common mental disorder. Globally, more than 300 million people of all ages suffer from depression. Depression is the leading cause of disability worldwide and is a major contributor to the overall global burden of disease. At its worst, depression can lead to suicide. Close to 800 000 people commit suicide every year. Suicide is the second leading cause of deaths in 15 to 29-year-olds. Cannabis extract is famously used in the treatment of HIV/AIDS and posttraumatic stress disorder. Hence, its use for the treatment of HIV/AIDS and stress disorder will help drive the demand for cannabis extracts in the global market.
Regional Analysis:
North America has made notable contributions towards the overall cannabis extract market size and is predicted to continue its market domination even in the near future. The growth of the regional market can be accredited to massive product penetration along with its use due to government approvals in countries such as Canada and the U.S.
Moreover, the European region is likely to contribute lucratively towards the overall market revenue over the ensuing years, subject to liberal policies adopted in the countries such as Germany, Spain, Luxembourg, and Italy pertaining to its use. In addition to this, a few of the countries in Europe have permitted the use of cannabis in the pharma sector. Key market players are Canopy Growth Corporation, Organa Brands, Aphria Inc., Peridot Labs, Aurora Cannabis, Colorado Cannabis Company, MARICANN INC., Kynd Cannabis Company, Tilray, Dabble Extracts, GW Pharmaceuticals plc, Organigram Holdings Inc., Optimum Extracts, Tikun Olam, Ltd., and The Cronos Group.
Key benefits of the report:
Questions answered in the Cannabis Extract Market research report:
Key Market Segments
Key Market Players