Cannabis Concentrate Market Outlook (2022 to 2032)

The Cannabis Concentrate Market is valued at USD 1,736.0 Million in 2022 and is anticipated to reach USD 3,079.7 Million by 2032. The market is expected to grow at a CAGR of 5.9% from 2022 to 2032.

Psychoactive ingredients such as tetrahydrocannabinol (THC) and cannabinoids are extracted from the herb cannabis sativa, giving rise to a golden and transparent semi-solid mass called the cannabis concentrate.

It is commonly called marijuana concentrate and is enjoyed as an intoxicant, resulting in high moods and hallucinations in consumers. The concentration of THC may vary from product to product. A cannabis concentrate is consumed through chews and gummies, soft gel capsules, or as an additive in food and beverages.

Smoking remains the most popular form of ingestion. As a medicine, cannabis concentrate is used for rare neurological disease treatment. However, there is a lack of staunch scientific support that cannabis concentrate is effective in disease treatment and thus, it’s legally prescribed in limited countries which include some states of the USA, Canada, Belgium, Australia, Netherlands, and Spain.

Attributes Details
Cannabis Concentrate Market Size Value in 2022 USD 1,736.0 Million
Cannabis Concentrate Market Projected Size Value in 2032 USD 3,079.7 Million
Global Growth Rate (2022 to 2032) 5.9% CAGR
Forecast Period (2022 to 2032)

The launch of a wide range of products with a focus on product developments while taking into consideration the rising demand for Cannabis Concentrate. The numerous health benefits obtained from cannabis products prove to be a significant driving factor for the market's growth. The market is expected to expand throughout the forecast period.

Future Market Insights projects the market to remain lucrative, exhibiting growth at 5.9% CAGR between 2022 and 2032 in comparison to the CAGR of 3.4% posted between 2016 and 2021.

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2016 to 2021 Cannabis Concentrate Market Outlook in Comparison to 2022 to 2032 Growth Forecast

The market grew at a CAGR of 3.4% between 2016 and 2021. Forecasts for growth remain optimistic, with the sales of Cannabis Concentrate predicted to grow at a CAGR of 5.9% between 2022 to 2032. The period marked the entry of various market players and product innovations.

Due to the numerous advantages that can be acquired from using cannabis concentrate, the demand for items made from it has increased in the current market.

As it aids in the treatment of numerous chronic ailments, the therapeutic value of cannabis products demonstrates to be a significant advantage for society. In order to have quicker effects on the skin, the cosmetic industry frequently uses cannabis concentrates when making ointments and lotions. Cannabis concentrates, which are mostly made from cannabis flowers, are also used to treat a range of neurological illnesses.

Cannabis Concentrate market banks high in the edible and recreational segment

Recently, there has been market growth in the cannabis concentrate market, especially in North America. Manufacturers are acquiring smaller companies to scale up their production facilities to cater to the immense consumer demand. Regulations are playing a crucial role in determining the trends of cannabis concentrate market growth.

Several health implications surrounding the poor quality of cannabis concentrate have padlocked the cannabis concentrate extraction facilities until they meet the quality standards. On the other hand, the legalization of cannabis concentrate in many U.S. states has encouraged a deeper penetration of cannabis concentrate in the end-use industries.

This has led to an extensive expansion of the specialty food product portfolio containing cannabis concentrate and has become a major food trend. Innovation and availability of varieties in end-use products such as easy to use disposable cartridges act as a major promoters for the cannabis concentrate market. Production technology and product development are intricately entwined as new technology allow manufacturers to make innovations in the extraction processes of cannabis concentrate, which either enables them to preserve the authenticity of cannabis concentrate or to improvise its versatility.

In the past few years, rosin, a relatively new variety of cannabis concentrate has gained popularity and appears to be a fast growing segment. Cannabis concentrate in the food industry is perceived as ethical and more consumer-friendly and hence, this segment is expected to register high growth over the forecast period.

As more cannabis concentrate products continue to gush in the market, specialty retailers are also broadening the shelf space for cannabis concentrate products, further fuelling the cannabis concentrate market growth.

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(CBD) gummies are in high demand

The rising use of cannabis to treat neurological illnesses, management, behavioral problems, and cancer has led to a high demand for cannabidiol (CBD) candies. Johns Hopkins University estimates that 26% of adults in the United States, or one in every four people, may have a diagnosable mental illness at some point during the year. Because anxiety, sadness, and neurological illnesses are becoming more common, among other factors, it is anticipated that marijuana demand will increase over the projected period.

The market for CBD gummies is expanding quickly, and new brands and products are frequently introduced. FMI analysis reveals that the market is still developing and has significant development potential. Several different CBD gummies are on the market with various tastes, dosages, and price ranges. Due to heightened competition, the average cost of CBD gummies has dropped lately.

Opportunities for Cannabis Concentrate Market Participants

Marketing of cannabis concentrate as a sustainable product can be used as a strategy to enhance the consumer base, as the consumer trend is following the trajectory towards sustainable and ethical food sources.

The quality of the cannabis concentrate gains an advantage for manufacturers over other cannabis derivatives and ensures that it fulfills the demands of recreational but health-conscious enthusiasts. Hence, a quality driven approach could also be used by marketers to attract a larger pool of consumers.

With the use of cutting-edge techniques, the number of negative effects brought on by the usage of cannabis products has been reduced. The concentrates are obtained in their original form and the active ingredients of the items are maintained by the vaporizers' cutting-edge techniques. The market for cannabis products has been opened up to legal sales and distribution in a number of nations, which presents a significant opportunity for major companies.

The leading market competitors' escalating competition to produce novel flavors and combinations has proven to be an opportunity for the recently launched startups.

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Major Restraints to the Market

A significant hindrance to the market's expansion is the exorbitant price tag attached to the use of cannabis concentrates and products. The severe guidelines established by a number of nations regarding the supply and distribution of cannabis products serve as a barrier during the market's early stages of expansion. The different adverse effects of using cannabis products are another factor impeding industry expansion. These factors demonstrate to be barriers to the market's expansion.

Country Wise Insights

What are the Prospects for the Growth of Cannabis Concentrate Sales in the USA?

According to FMI, the USA is a dominant market for Cannabis Concentrate with a sizable market share of 31.0% globally and it is also expected to exhibit high growth over the forecast period. According to the latest study, Cannabis Concentrate Market is anticipated to expand at a substantial growth rate and register a significant CAGR over the forecast period.

As per FMI’s regional analysis, the region of North America has had the fastest growth due to the enormous demand and supply that exist for cannabis products as a result of the legalising regulations that have been put in place governing its use.

Rapid research and development by the major market players have helped the market to experience significant growth and to focus on potential consumers with the goal of sustaining long-term product sales. This research and development aim to understand the medical benefits as well as the side effects caused by the medicine. Due to ongoing limitations and regulations placed on the use of components, the Asia Pacific region has experienced unrestricted expansion.

What is the outlook of the UK in the market of Cannabis Concentrate?

The UK Cannabis Concentrate market research gives context for and insight into how, despite the market's slower-than-anticipated growth, opportunities in the UK cannabis market are still quite attractive, exhibiting a market share of 3.9% globally.

According to the FMI analysis, the patient access problems that have so far slowed the market's expansion will disappear as the country starts importing more cannabis concentrate in large quantities and makes more funding available for cannabis concentrate research and the education of medical professionals.

These factors have made it essential for players operating in the market to maintain high-quality standards in the production of Cannabis Concentrate for sustaining sales through 2032.

What are the Growth prospects of the Cannabis Concentrate market in Germany?

The FMI analysis of the German cannabis concentrate market shows how, the increasing number of people who have switched to cannabis as a medical treatment over the past two years, due to which the consumption rates have increased significantly. Germany is anticipated to maintain its dominance in the cannabis market for the foreseeable future across research, legislation, healthcare, and industry as the continent's largest economy and most developed cannabis sector, respectively. Accounting for a sizeable market share of 22.0% globally.

Adjacent Markets Overview

Cannabis Beverages Market:

Attributes Cannabis Beverages Market
CAGR (2022 to 2032) 17.0%
Market Value (2032) USD 5,899.5 million
Growth Factor Growing consumer preferences towards various alternates of alcoholic beverages will serve as a growth indicator for the market of cannabis beverages.
Opportunity Cannabis sales have increased from regulated dispensaries, opening up many opportunities for specialised retailers to present appetising and creative drinks infused with some active principles from cannabis.
Key Trends Customers, especially those in the developed markets of North America and Europe, are consistently establishing the category of organic and chemicals-free, as well as with detectable and herbal formulations trends and advancements

CBD Gummies Market:

Attributes CBD Gummies Market
CAGR (2022 to 2032) 29.0%
Market Value (2032) USD 9,378.3 million
Growth Factor High proof of the effectiveness of CBD gummies for anxiety in general popular culture is projected to be the main driver of such increased sales of CBD gummies in the local market.
Opportunity For good reason, CBD gummies have fast gained popularity. They are enjoyable, pleasant, and simple to use medicines. Additionally, they offer all of the advantages of CBD oil without any of the potential disadvantages.
Key Trends With the rise of online platforms in recent years, the online distribution channel is gaining speed and growing more quickly. Since all brick-and-mortar businesses were shut down widely as a result of the epidemic, overall sales through offline channels significantly declined.

CBD Snacks Market:

Attributes CBD Snacks Market
CAGR (2022 to 2032) 13.2%
Market Value (2032) USD 2,830.0 million
Growth Factor One of the key factors propelling the growth of the CBD-infused snack market is consumers' rising preference for natural organic products over medicines.
Opportunity Rapid industrialization and infrastructure expansion in developing countries have increased the use of rented alternative energy resources for prime power applications.
Key Trends The market for CBD-infused snacks is being positively impacted by a rise in the number of social media influencers who are highlighting the advantages of the product, mergers, and acquisitions among major firms, R&D initiatives, a change in lifestyle, and an increase in disposable income.

Category wise Insights

Insight by Distribution Channel

The specialty store systems segment, which is based on the distribution channel segment, is anticipated to be the largest revenue generator in the global market in 2022 and is anticipated to maintain its dominance over the anticipated period. The expanding use of cannabis food products by specialty store operators in developed and developing countries is to blame for this. Moreover, supermarkets and hypermarkets offer a one-stop shopping experience where customers can buy all products in the cannabis concentrates food and beverage sector, making it a popular choice.

Competitive Landscape

The Cannabis Concentrate Market was impacted by COVID 19, although only to a limited extent. Changes in factors such as demand, consumption, transportation, consumer behavior, supply chain management, import, export, and production were constrained. The COVID-19 pandemic has also contributed to higher usage rates in a significant way. About half of all cannabis consumers worldwide said they used cannabis to help them cope with stress and anxiety during the epidemic despite unprecedented economic and social disruptions. Additionally, the increase in home-based employment and restrictions on social gatherings promoted greater cannabis consumption than had been anticipated for the year in legal worldwide markets, which resulted in a 35% increase in retail cannabis sales.

Due to the presence of several local and regional competitors, the industry is extremely fragmented and competitive globally. As a part of their growth strategies, leading players in the market are emphasizing strategic partnerships, mergers, and acquisitions to establish a firm foothold in the market. Apart from collaborations, a profound emphasis on research and development for better product rollout will help solidify growth prospects during the assessment period. For instance

  • In May 2022, Canopy Growth Corporation introduced the Orange Orbit and the Grape as new varieties for its flavored cannabis-infused fizzy drinks. This launch broadens the company's product line and delivers cutting-edge goods for the cannabis market.
  • In March 2022, the 15-flavor CBD Health Gummies Sampler was produced by Martha Stewart in association with Marquee Brands and Canopy Growth Corporation. This selection of goods gave customers access to CBD's health benefits.

Over the forecast period, new companies are expected to enter the Cannabis Concentrate market, both locally and regionally, due to attractive opportunities. Some of the key players in the Cannabis Concentrate Market are listed below.

Scope of the Report

Attribute Details
Forecast Period 2022 to 2032
Historical Data Available for 2016 to 2021
Market Analysis USD Million for Value & MT for Volume
Key Regions Covered North America; Latin America; Europe; East Asia; South Asia; Oceania and the Middle East & Africa
Key Countries Covered USA, Canada, Brazil, Mexico, Argentina, Europe, Germany, UK, France, Italy, Spain, BENELUX, Nordic, Russia, Poland, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Vietnam, Philippines, Singapore, Oceania, Australia, New Zealand, MEA, GCC Countries, Turkey, Egypt, South Africa.
Key Segments Covered Product Type, End Use, Distribution Channel, Region, Sales
Key Companies Profiled Indiva Limited; Cannabis Sativa Inc.; Westleaf Inc.; Aurora Cannabis Inc.; Cannara Biotech, Inc,; World Class Extractions Inc.; General Cannabis Corp.; Medical Marijuana Inc.; Canopy Growth Corporation; The Supreme Cannabis Company, Inc.; MediPharm Labs; Radient Technologies Inc.; Neptune Wellness Solutions; Valens GroWorks Corporation.; StillCanna Inc.
Report Coverage Market Forecast, Company Share Analysis, Competition Intelligence, Drivers Restraints Opportunity Trends Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing Available upon Request

Cannabis Concentrate Market by Category

By Product Type:

  • Shatter
  • Budder
  • Rosin
  • Live Resin
  • Others

By End Use:

  • Industrial
  • Pharmaceuticals
  • Food Industry
  • Dietary Supplements
  • Cosmetics & Personal care
  • Recreational

By Distribution Channel:

  • Direct
  • Indirect
  • Pharmacy Stores
  • Specialty Stores
  • Others

Frequently Asked Questions

At what rate will the Cannabis Concentrate Market grow?

Throughout the forecast period, the Cannabis Concentrate Market is expected to grow at a CAGR of 5.9%

What is the expected value of the Cannabis Concentrate Market by 2032?

By 2032, the Cannabis Concentrate Market is expected to be worth USD 3,079.7 Million.

Which region adds to the highest Cannabis Concentrate Market Valuation?

Currently, the USA is at the top of the market share with 31.0% of the global Cannabis Concentrate Market. UK, Germany, and Japan are also growing at a steady CAGR.

Who are the key players in the Cannabis Concentrate Market?

Some of the key players in the Cannabis Concentrate Market include Indiva Limited, Cannabis Sativa Inc., Westleaf Inc., Aurora Cannabis Inc., Cannara Biotech, Inc, World Class Extractions Inc. and Others.

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