Growth in Cannabis Extraction
The cannabis extraction market is booming right now, and as a relatively new industry, it continues to show signs of growth and development. Of course, a big part of the development process has to do with the rules and regulations passed by different states within the U.S. and the world. However, deregulation and legalization are common occurring themes. Certainly, this is a trend North America has led, but it could well be a trend across the planet.
If you’re looking to get involved with cannabis extraction, it’s worth learning as much as possible. To get you started, we’re diving into useful foundational information, which we hope gives you a better idea of what to expect within the cannabis extraction field.
What is the size of the U.S. cannabis extraction market?
In 2020, the cannabis extraction market in the U.S. was worth $7.8 billion and is projected to reach a market size of $31.5 billion by the end of the decade.
What are cannabis extracts?
Essentially, cannabis extracts consist of products derived directly from the plant material, either hemp or marijuana. The extracts contain a high level of cannabinoid substances, such as THC (tetrahydrocannabinol) and CBD (cannabidiol). THC gives people the feeling of being “high,” whereas CBD is non-intoxicating and has been shown to have many therapeutic benefits. Compared with dried cannabis stems, leaves, and flowers, the cannabis extract is more concentrated, and it comes in either solid or liquid form.
Why is such strong growth expected?
There is no doubt demand is growing. Even in countries that haven’t legalized cannabis in its entirety, many have allowed the development of CBD products, which come in a wide variety of different forms, ranging from balms and lotions to edible products, such as bars and gummies. Plus, there is an increase in nonalcoholic drinks coming onto the market in which CBD is an ingredient.
There is increasing adoption of cannabis to treat physical ailments, which has played a factor in changing laws across the globe to legalize marijuana. In addition, more research and development are being done, which is likely to add even more cannabis products to the marketplace.
How big is the cannabis market?
As of mid-2021, the United Nations estimates that 180 million individuals between the ages of 15 and 64 consume cannabis on an annual basis globally. There are medical cannabis exemptions that have been issued in more than 20 countries all over the world, including Australia, Colombia, and Germany. With the already evolving restrictive laws changing, general attitudes across populations are changing also, which is sure to keep the cannabis market at an upward trajectory.
What are the factors driving growth?
First of all, there is growing awareness and research among medical practitioners. The benefits of cannabis use are finally being medically recognized for treatment of various health issues, such as psychological disorders, nausea, and to alleviate the side effects of cancer treatments. When it comes to pain management, especially caused by a disease, cannabis has become a top choice to alleviate the pain. Other illnesses benefiting from cannabis use are Parkinson’s, Alzheimer’s, epilepsy, and other neurological disorders.
Next, there is the recreational side of cannabis. Recreational use is often done by those seeking to relieve stress and anxiety and improve sleeping patterns. With the legalization of marijuana in many countries around the world, recreational use continues to increase across all legal age groups, from young adults to aging hippies.
Lastly, cannabis products are becoming more widely available as demand increases. Cannabis oil, beauty and skincare products, edibles and drinks, and even dog treats are becoming popular across the U.S.
What are the main regional differences?
As might be expected, North America dominates the current cannabis extraction market with as much as 71% of the overall market share. There is a higher awareness of the medical benefits of cannabis in this region, as well as enjoyment of the recreational side of things. Europe is next up, thanks to the high consumption of cannabis oil in Italy. There is also continuing approval of cannabis products across Europe.
The market is also expanding in Asia due to cannabis legalization. Other countries that have started indigenous production and are expected to become viable cannabis markets are Australia, Mexico, Germany, Colombia, and Israel.
It’s a fact that the cannabis market is expanding quickly. As consumption increases, the demand increases, and there has been a boom in investor confidence. Legalization efforts are going to continue throughout the U.S. and worldwide; with more legalization, the cannabis market is going to show an even wider variety of products to choose from. Now is a great time to become part of the market expansion!