Cannabis Extract Or Flower Market by type (Extract, Flower), by applications covered (Online, Offline), & Region - Global Growth Insights forecast to 2031

Cannabis Extract Or Flower market size was valued at USD 6022970.24 million in 2022 and is expected to expand at a CAGR of 10.35% during the forecast period, reaching USD 14611708.93 million by 2031.

The cannabis industry has seen a dynamic shift over the last few decades, moving from an underground, stigmatized environment to a booming global market. Central to this metamorphosis is the dichotomy between cannabis extract and flower market. Each has its own set of advantages and consumers, and understanding the nuances can give one a clearer perspective on the industry's trajectory.

CANNABIS EXTRACT OR FLOWER MARKET OVERVIEW

Cannabis flower, often referred to as "bud" or "nuggets," is the smokable part of the cannabis plant. It has been traditionally consumed for recreational, spiritual, and medicinal purposes for thousands of years. Its widespread acceptance across cultures can be attributed to its natural form and the sensory experiences associated with its consumption. Many consumers value the ritualistic aspect of grinding, rolling, and smoking the plant. Moreover, the terpenes present in the flower can provide a diverse palette of flavors and aromas, making the consumption experience unique each time.

Contrarily, cannabis extract has gained immense popularity in recent years. Extracts, often found in oils, tinctures, and concentrates, offer a more potent and consistent dosage of cannabinoids, primarily THC (Tetrahydrocannabinol) and CBD (Cannabidiol). The extraction process isolates these cannabinoids, eliminating plant materials and potential impurities, which, in turn, results in a more refined product.

Technological advancements have further propelled the extract market. Devices like vaporizers and pens offer a discreet, cleaner, and more controlled way to consume cannabis, making it a popular choice among new-age consumers. On the medicinal front, extracts have become invaluable. They provide a more predictable therapeutic outcome, especially when it comes to dosing.

The global demand for both cannabis flowers and extracts is soaring. The relaxation of laws, increasing acceptance of cannabis's medicinal properties, and changing consumer preferences are just a few factors contributing to this surge. Regions that once opposed cannabis are now opening their doors to research and trade, making it a truly global commodity.

However, the industry is not without its challenges. Regulatory landscapes differ across countries and even within states, making trade and distribution complex. The lack of standardization in products, especially in the extract market, can also lead to inconsistencies in quality.

Despite these challenges, the market shows no signs of slowing down. With research and innovation driving the sector, the future looks promising for both cannabis flower and extract enthusiasts.

COVID-19 IMPACT

The advent of the COVID-19 pandemic brought with it an unforeseen disruption to global economies, and the cannabis extract or flower market was no exception. Initially, as lockdowns and restrictions were implemented worldwide, there was significant uncertainty regarding how the industry would fare.

Many regions classified cannabis dispensaries as "essential businesses," akin to pharmacies and grocery stores. This decision highlighted the growing acceptance of cannabis, especially for medicinal purposes. However, these permissions came with challenges. Supply chain disruptions meant many products, especially those reliant on international trade, faced shortages. Producers had to grapple with increased costs, stemming from pandemic-related restrictions and the necessity for heightened sanitary measures.

Consumer behavior also witnessed a noticeable shift during this period. With health and wellness becoming central themes, there was a surge in demand for CBD products. CBD, known for its potential anti-inflammatory and anxiety-reducing properties, became a go-to for many looking for natural remedies to deal with pandemic-induced stress.

While the flower market saw consistent demand, the extract market, particularly vapes, faced skepticism. Concerns arose regarding the potential link between vaping and increased susceptibility to respiratory ailments, including COVID-19.

MARKET RECOVERY AFTER COVID-19

Emerging from the challenges of the pandemic, the cannabis extract and flower market began its journey to recovery. One of the most pronounced shifts was the rapid adaptation to e-commerce and delivery services. Businesses that once relied on brick-and-mortar sales swiftly transitioned online, offering delivery and curbside pickup options, ensuring consumers had safe access to their products.

Governments, recognizing the economic potential of the industry, began fast-tracking legalization efforts. This not only opened up new markets but also provided much-needed tax revenues during a time of economic downturn.

There was also a marked increase in research initiatives, especially concerning cannabis's potential role in alleviating COVID-19 symptoms and complications. Though conclusive evidence is yet to be established, the focus on research has undoubtedly enhanced the industry's credibility.

LATEST TRENDS

As we delve deeper into the 21st century, several trends are shaping the cannabis extract and flower market:

• Health and Wellness Focus: Beyond recreational use, there's a pronounced shift towards the health and wellness potential of cannabis. This is especially true for CBD-rich products known for their therapeutic properties without the psychoactive effects.

• Micro-dosing: Consumers are increasingly looking for controlled experiences. This has led to the rise of products tailored for micro-dosing, allowing individuals to reap the benefits of cannabis without the overwhelming effects.

• Bespoke Experiences: The market is moving towards personalized cannabis experiences. With advancements in technology, consumers can now select products based on their desired effects, flavor profiles, and potency levels.

• Sustainability: As with many industries, sustainability is becoming central to cannabis production. From eco-friendly packaging to organic cultivation methods, the industry is taking steps to reduce its carbon footprint.

DRIVING FACTORS

Several factors are driving the growth of the cannabis extract and flower market:

• Legalization: As more regions decriminalize or legalize cannabis, both for medicinal and recreational use, the market potential exponentially grows.

• Research and Innovation: Continuous research into the therapeutic potential of cannabinoids is opening up new avenues for the industry.

• Changing Social Perceptions: The stigma associated with cannabis is gradually eroding, replaced by a more informed and accepting outlook.

• Diverse Product Range: From edibles and beverages to topicals and tinctures, the variety of products available caters to a broader consumer base, each with unique preferences.

RESTRAINING FACTORS

While the global cannabis extract or flower market has witnessed substantial growth and acceptance, several restraining factors challenge its potential and expansion:

• Regulatory Hurdles: Despite the wave of cannabis legalization in numerous countries, the regulatory environment remains fragmented. Some regions have strict controls regarding production, distribution, and consumption, leading to operational challenges for businesses.

• Lack of Research: Cannabis, especially in its medicinal applications, needs more comprehensive and conclusive research. The ambiguity surrounding its long-term effects can hinder its broader acceptance.

• Quality Consistency: Due to the absence of standardized production methods and controls, the quality of cannabis products can be inconsistent. This inconsistency can affect consumer trust and adoption rates.

• Public Perception: Despite evolving viewpoints, there remains a significant portion of the global population that holds a negative perception of cannabis. Misinformation and age-old stigmas can slow market penetration.

• Banking and Financial Challenges: In regions where cannabis is legal at the state level but illegal at the federal level, businesses often face financial hurdles. Many banks refuse to deal with cannabis-related businesses due to the federal implications, making transactions and investments more challenging.

• Supply Chain Complexities: International trade restrictions, varying quality control measures across regions, and logistical issues add layers of complexity to the cannabis supply chain.

• High Taxation: In some areas, cannabis products are subject to high taxes, making them less affordable and possibly fueling black market operations.

CANNABIS EXTRACT OR FLOWER MARKET OPPORTUNITIES

The challenges notwithstanding, the cannabis extract or flower market is rife with opportunities:

• New Product Development: With continuous research, there's potential for developing novel cannabis products catering to specific needs, be it therapeutic or recreational.

• Evolving Consumer Preferences: As consumers become more educated about cannabis, there's potential to cater to niche markets, from gourmet edibles to specialized strains.

• Medical Advancements: The potential therapeutic benefits of cannabis compounds like CBD and THC present substantial opportunities in the pharmaceutical sector.

• Technological Innovations: Advancements in cultivation technology, extraction methods, and product delivery systems can redefine the cannabis experience for consumers.

CANNABIS EXTRACT OR FLOWER MARKET SEGMENTATION

• By Product Type

  • Flower/Bud
  • Concentrates (like oils, waxes)
  • Edibles
  • Topicals
  • Tinctures

• By Application

  • Recreational
  • Medicinal

• By THC Content

  • High THC
  • Balanced THC & CBD
  • High CBD

• By Distribution Channel

  • Online
  • Dispensaries
  • Pharmacies

• By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa

CANNABIS EXTRACT OR FLOWER MARKET REGIONAL INSIGHTS

• North America

  • Largest market share due to early legalization moves, especially in Canada and several US states.

  • Advanced research infrastructure and consumer awareness.

• Europe

  • Rapidly expanding market with countries like Germany leading medicinal cannabis adoption.

  • Regulatory environment becoming more conducive for businesses.

• Asia-Pacific

  • High potential market with evolving regulations, especially in countries like Thailand and South Korea.

  • Traditional acceptance of cannabis in some cultures offers unique opportunities.

• Latin America

  • Countries like Uruguay and Colombia are emerging as significant players in both cultivation and export.

  • Evolving regulations are paving the way for market expansion.

• Middle East & Africa

  • Slow adoption due to stringent regulations and cultural perspectives.

  • However, countries like Lesotho are becoming export hubs.

GLOBAL INDUSTRY INSIGHTS

The global cannabis extract or flower market is on an upswing, and as per projections, the international scene is poised for unprecedented growth. Various factors underpin this growth trajectory:

• Policy Evolution: Many countries, previously opposed to cannabis, are revisiting their stances, primarily driven by the potential economic benefits from tax revenues and job creation.

• Emergence of New Markets: As Asia and parts of Africa open up to the cannabis market, their vast populations present enormous consumer bases. This potential consumer market can drive significant value growth.

• Trade Dynamics: With more regions entering the cannabis trade, both for import and export, the global market dynamics are shifting. This interplay can lead to competitive pricing and product variety, further driving market value.

• Technological Advancements: Globally, technology is playing a pivotal role in refining cannabis cultivation, extraction, and distribution. These advancements can optimize operations, reduce costs, and improve product quality.

• Consumer Awareness: The international community is becoming more knowledgeable about cannabis. This awareness, combined with evolving perceptions, can significantly drive market demand and, subsequently, its value.

COMPANIES UPDATE

The cannabis extract or flower market boasts some of the most pioneering and influential companies that have been instrumental in shaping the industry's trajectory. Here’s an update on some of the major players:

• Canopy Growth Corporation: Headquartered in Smiths Falls, Ontario, Canopy Growth has made its mark as one of the frontrunners in the cannabis industry.

• Tikun Olam Ltd.: Based in Tel Aviv, Israel, Tikun Olam Ltd. is renowned for its extensive research and development in medical cannabis.

• Aurora Cannabis: With its headquarters situated in Edmonton, Alberta, Aurora Cannabis has been a significant contributor to the medicinal and recreational cannabis sectors.

• The Cronos Group: Headquartered in Toronto, Ontario, The Cronos Group stands out with its innovative approach to cannabis cultivation and production.

• Tilray: Located in Nanaimo, British Columbia, Tilray is a global leader specializing in medical cannabis research, cultivation, and distribution.

• Organigram Holdings Inc.: Based in Moncton, New Brunswick, Organigram Holdings Inc. has been at the forefront of the cannabis industry with its unique cultivation techniques and product range.

• Maricann Inc.: With its base in Langton, Ontario, Maricann Inc. has been making waves with its high-quality cannabis products tailored for the medical sector.

• Aphria Inc.: Located in Leamington, Ontario, Aphria Inc. prides itself on its sustainable cannabis cultivation methods and product excellence.

RECENT DEVELOPMENTS

• Emergence of Cannabis Beverages

  • A groundbreaking development in the "cannabis extract or flower market" is the introduction of cannabis-infused beverages. Major beverage companies are entering partnerships with cannabis producers to offer a range of drinks from non-alcoholic beers to sparkling waters infused with THC and CBD.

  • This trend taps into the health and wellness market, with many consumers opting for cannabis beverages as a healthier alternative to alcoholic drinks. These beverages provide controlled doses, ensuring a consistent experience for the consumer.

  • The cannabis beverage market is anticipated to grow exponentially with advancements in infusion technologies ensuring better taste, consistent potency, and faster onset times.

• Adoption of Blockchain in Cannabis Supply Chain

  • In a bid to enhance transparency and compliance, some cannabis companies are integrating blockchain technology into their operations. This ensures every stage of the cannabis product lifecycle, from cultivation to the end consumer, is traceable.

  • Such traceability is essential for regulatory compliance and for building consumer trust. Blockchain also alleviates some of the banking challenges faced by the cannabis industry, providing secure financial transactions.

  • As the industry expands, ensuring the legitimacy and quality of products becomes paramount. Blockchain aids in reducing fraud, ensuring product quality, and streamlining operations.

• Innovations in Extraction Techniques

  • The demand for pure and potent cannabis extracts has led to innovations in extraction methods. Supercritical CO2 extraction, for instance, is gaining traction as it yields a purer product without the use of solvents that might compromise the quality.

  • These advanced techniques not only yield a better product but also allow for the capture of minor cannabinoids, opening up a broader spectrum of potential therapeutic applications.

  • As consumers become more discerning about product quality and purity, companies employing the most advanced and clean extraction methods will likely have a competitive edge.

REPORT COVERAGE

The cannabis extract or flower market report offers a comprehensive analysis of the current market scenario, its trends, and potential future directions. Key features of the report include:

• Market Dynamics: Provides an in-depth analysis of the market drivers, restraints, and opportunities that are influencing the growth trajectory of the industry.

• Segmentation Analysis: Offers detailed insights into the market segments based on product type, application, distribution channel, THC content, and region.

• Competitive Landscape: Profiles the major players in the market, detailing their market share, growth strategies, recent developments, and potential future moves.

• Technological Advancements: Highlights the latest technological trends and innovations that are shaping the market and provides forecasts on their potential impact.

• Regulatory Environment: Gives an overview of the regulatory landscape across different regions, detailing how regulations are influencing market growth and offering predictions on potential future changes.

NEW PRODUCTS

The cannabis extract or flower market is constantly evolving, with companies launching new products to cater to changing consumer preferences:

• Nano-Encapsulated Cannabis: Allows for faster absorption of cannabinoids, providing quicker onset times and a more predictable experience.

• Cannabis Transdermal Patches: Offers a discreet and controlled release of cannabinoids, ideal for medicinal users seeking long-lasting relief.

• Cannabis Inhalers: A smokeless method of consumption that provides precise dosing, making it particularly suitable for medical applications.

• Broad-Spectrum Oils: Cannabis oils that contain a range of cannabinoids but are THC-free, catering to consumers who want the benefits of cannabis without the psychoactive effects.

• CBD-Infused Skincare Products: Tapping into the beauty and skincare market, these products offer potential anti-inflammatory and antioxidant benefits.

REPORT SCOPE

The scope of the cannabis extract or flower market report encompasses:

• Period of Study: Typically, the report covers past market data and offers forecasts for a specified period, giving a comprehensive view of the market's evolution.

• Geographic Scope: The report analyzes the market across key regions, detailing region-specific trends, growth factors, and challenges.

• Segment Scope: Focuses on various market segments, offering insights into which segments are growing, which are stagnant, and the reasons behind such trends.

• Company Profiles: A detailed analysis of major market players, their strategies, challenges, opportunities, and recent developments.

• Research Methodologies: Outlines the methodologies used in compiling the report, ensuring the data is accurate, relevant, and timely.

• Recommendations: Based on the analysis, the report offers strategic recommendations for stakeholders, providing insights into potential areas of investment, growth strategies, and areas to be cautious about.

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