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Market Overview
According to Fortune Business Insights, The global cannabis extract market size was valued at USD 14.32 billion in 2024. The market is projected to grow from USD 16.40 billion in 2025 to USD 48.08 billion by 2032, exhibiting a CAGR of 16.61% during the forecast period.
Fortune Business Insights™ has deep-dived into these insights in its latest research report, titled “Cannabis Extract Market, 2025-2032.”
The analysis shows that the market is fueled by the increasing use of extracts for therapeutic and pharmaceutical product manufacturing. The commercialization and normalization of cannabis production, supported by favorable regulatory policies in countries like the U.S. and Canada, play a pivotal role in supporting growth. For instance, companies are investing heavily in advanced technology to produce high-quality extracts suitable for medical and industrial applications.
Major Players Profiled in the Market Report:
• Canopy Growth Corporation (Canada)
• Tilray Brands Inc. (Canada)
• Aurora Cannabis Inc. (Canada)
• Organigram Global Inc. (Canada)
• The Cronos Group Inc. (Canada)
• Green Thumb Industries (U.S.)
• Panaxia Pharmaceutical Industries Ltd. (Israel)
• Radient Technologies Inc. (Canada)
• Taima Extracts Inc. (Canada)
• Motif Labs Ltd. (Canada)
Segments
Marijuana-Derived Segment Led Market Due to High Concentration of Therapeutically Active Cannabinoids
Based on source, the market is divided into hemp-derived, marijuana-derived, and synthetic/semi-synthetic cannabinoids. The marijuana-derived segment accounted for the largest market share owing to high quantities of THC and CBD, making it suitable for manufacturing medical-grade products to manage chronic pain and nausea.
Vapes and Cartridges Accounted for Major Market Share Due to High Bioavailability
By form, the market is segmented into oils and tinctures, concentrates & extracts, capsules & softgel, edibles, and vapes & cartridges. The vapes & cartridges segment accounted for the largest market share in 2024 because they provide quick relief and high bioavailability, making them popular among consumers seeking immediate effects.
Full-Spectrum Extracts Dominated Market Due to a Broad Range of Therapeutic Applications
The market is segmented by extract type into full-spectrum extracts, broad-spectrum extract, and isolates. The full-spectrum extracts segment held the largest market share in 2024. These extracts provide a synergistic interaction between multiple cannabinoids (entourage effect), which is favored in medical applications for treating pain, anxiety, and sleep disorders.
Legalization of Cannabis Contributes to Higher Share of Recreational/Adult‑Use Segment
Based on application, the market is segmented into medical/pharmaceutical, recreational/adult‑use, wellness/nutraceutical, cosmetics & personal care, and food & beverage. The recreational/adult‑use segment accounted for the highest market share in 2024, driven by legalization in key markets like Canada and the U.S., which has normalized consumption and created regulated retail systems.
Geographically, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Source: https://www.fortunebusinessinsights.com/cannabis-extract-market-114500
Report Coverage
The report offers:
• Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
• Comprehensive insights into regional developments.
• List of major industry players.
• Key strategies adopted by the market players.
• The latest industry developments include product launches, partnerships, mergers, and acquisitions.
Drivers & Restraints
Favorable Regulatory Policies Support Market Growth
Several countries are developing frameworks to legalize the use of cannabis extract for medical and recreational purposes. This commercialization creates a pivotal driver for market growth. However, high production costs impede expansion. The requirement for advanced refinement systems, GMP-certified facilities, and high capital investment makes it difficult for small manufacturers to maintain high profit margins.
Regional Insights
North America Takes the Lead in the Global Market
North America dominated the global market with a share of 86.24% in 2024 (USD 12.35 billion). The region’s leadership is attributed to clear regulatory frameworks in the U.S. and Canada that have legalized the industry. The U.S. remains the largest consumer, with the market estimated to reach USD 11.82 billion in 2025.
Asia Pacific is one of the fastest-growing regions, with a market value of USD 0.42 billion in 2024. Growth is driven by the legalization of medical cannabis in countries like South Korea and Thailand, alongside increasing consumption in Australia and Japan.
Cannabis Extract Market Future Growth:
The cannabis extract market is poised for significant growth driven by the rising popularity of plant-based wellness products. Consumers are increasingly seeking natural remedies, fueling the demand for clean-label products such as infused oils and edibles that provide the "entourage effect." Future growth is also anchored in R&D related to cannabinoid-based pharmaceuticals. Ongoing research into CBD and THC for treating chronic pain and neurological disorders is creating opportunities for extract manufacturers to partner with pharmaceutical companies, expanding into untapped application areas.
Competitive Landscape
Product & Technological Innovation are Key Strategies Used to Differentiate Products
The market is fragmented with intense competition. Key players like Canopy Growth and Tilray Brands are adopting strategies such as vertical integration to control cultivation, extraction, and distribution. A major focus is placed on product innovation using advanced extraction technologies to develop high-quality solutions for multiple industries.
Key Industry Development
• October 2025: OneStep launched a next-generation cannabis extraction system built on electromagnetic TFE closed-loop technology.
• October 2025: Medical cannabis startup Awshad launched 6500mg of CBD oil to provide relief from chronic pain and severe anxiety.
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