According to insights provided by Custom Market Insights (CMI), the global cannabis concentrate market was valued at approximately USD 3.94 billion in 2021. It is projected to expand significantly and reach an estimated value of around USD 18.5 billion by the end of 2030. This growth reflects a strong compound annual growth rate (CAGR) of 25.04% over the forecast period from 2022 to 2030. The increasing popularity and usage of cannabis-derived products, particularly concentrates, is largely attributed to their broad therapeutic applications and the growing demand across various sectors.
Cannabis concentrates are derived through processes that extract the most valuable components of the cannabis plant, particularly cannabinoids and terpenes. These concentrates are used in numerous formulations, especially in the production of medical and cosmetic products. For instance, they are widely employed in the creation of lotions, ointments, and balms used in skincare treatments, providing rapid and noticeable effects. Moreover, cannabis concentrates are finding increasing relevance in the treatment of neurological disorders, offering therapeutic solutions for chronic and persistent conditions.
One critical aspect of the manufacturing process of cannabis concentrates is the variation in temperature settings used to extract the active ingredients effectively. This careful temperature control helps preserve the potency and quality of the concentrate, ensuring its efficacy in various applications.
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Regional Insights
The North American region has shown the highest growth in both demand and supply of cannabis concentrates. This trend is primarily driven by the increasing legalization of cannabis for both medicinal and recreational use in countries such as the United States and Canada. The presence of a large geriatric population in this region, many of whom suffer from chronic illnesses, has significantly contributed to the increased usage of cannabis-based treatments. Additionally, the legal framework in North America has allowed small and medium enterprises to participate in the cultivation and distribution of cannabis products under government-issued licenses, promoting healthy market growth.
Europe has also emerged as a significant regional market due to the growing acceptance and recent legalization of cannabis concentrates in various countries. The expansion of government-funded healthcare systems that offer advanced treatments has further encouraged the integration of cannabis-derived products into mainstream medical care.
Canada and countries in South America are other notable contributors to the market, where medicinal cannabis is becoming increasingly mainstream. These regions have witnessed strong adoption across both medical and recreational user segments.
In contrast, the Asia Pacific region has experienced slower growth due to stringent regulations and conservative policies surrounding the production, sale, and consumption of cannabis products. Government-imposed limitations continue to restrict market expansion in several countries across this region.
Market Dynamics
Drivers
A significant growth driver for the cannabis concentrate market is the increasing demand for its diverse applications. Cannabis concentrates offer multiple health benefits and are being widely used in the treatment of chronic illnesses, particularly neurological conditions. Furthermore, industries such as cosmetics and healthcare are adopting cannabis extracts on a larger scale to develop innovative therapeutic and personal care products. These expanding applications across various verticals are accelerating market growth.
Restraints
Despite the positive outlook, certain factors are acting as constraints on market growth. One of the major barriers is the high cost associated with cannabis concentrates and their derivative products. Additionally, many countries continue to enforce strict regulations on the distribution and commercialization of cannabis products. This regulatory uncertainty poses challenges for both established companies and new entrants. Moreover, some users have reported side effects from cannabis usage, which may deter broader consumer acceptance and adoption, especially in markets with limited awareness.
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Opportunities
Ongoing advancements in product innovation have created new opportunities within the cannabis concentrate industry. Manufacturers are increasingly focusing on developing novel flavors, formulations, and delivery methods to attract a broader consumer base. Through research and development efforts, companies have been able to reduce side effects and enhance product safety. Technological improvements in vaporizers, which allow for precise extraction of concentrates while maintaining the efficacy of active compounds, have further strengthened market prospects.
The global trend toward legalization in various countries is also creating a favorable environment for business expansion. Regulatory support allows established players and startups to invest confidently in research, production, and distribution. Competitive pressure among key market participants to introduce more effective and appealing products is also providing growth opportunities for new market entrants.
Challenges
The cannabis concentrate market continues to face several challenges that hinder its full potential. Stringent regulatory environments in many regions, especially in Asia and parts of the Middle East, present obstacles to the smooth distribution and commercialization of cannabis products. Additionally, concerns regarding misuse and recreational abuse have led to increased government scrutiny, which can negatively impact demand. Furthermore, lingering stigmas associated with cannabis use in some cultures continue to affect market penetration and public perception.
Segmental Highlights
By Product Type:
The vape segment emerged as the leading category within the cannabis concentrate market due to the rising popularity of vaping among both medicinal and recreational users. Consumers increasingly favor vapes because of their ease of use, portability, and fast onset of effects. Alongside vapes, other product types such as oils and waxes are gaining traction. These concentrates are often formulated into topical ointments and lotions that offer therapeutic benefits for conditions such as muscle pain, inflammation, and skin issues.
By End User:
The medical segment dominates the market based on end-user categorization. The widespread use of cannabis concentrates in the treatment of chronic illnesses, neurological disorders, and other health conditions has significantly driven this segment’s growth. Healthcare providers and patients alike are increasingly recognizing the potential of cannabis-based therapies to offer relief where conventional treatments may fall short.
By Geography:
As highlighted earlier, North America remains the dominant regional market. This dominance is supported by the progressive legalization of cannabis, growing healthcare expenditures, and an increasing number of companies investing in research and development in this sector. The well-established regulatory framework and widespread consumer awareness also contribute to the region’s strong market position.
Key Market Players
The global cannabis concentrate market is characterized by a mix of established players and emerging startups that are investing in product innovation and geographic expansion. Some of the prominent companies operating in this space include:
Indiva Limited
Westleaf Inc.
Aurora Cannabis Inc.
World Class Extractions Inc.
Medical Marijuana Inc.
Canopy Growth Corporation
MediPharm Labs
Radient Technologies Inc.
Neptune Wellness Solutions
Valens GroWorks Corporation
StillCanna Inc.
And others
These companies are actively involved in product development, strategic partnerships, and market expansion efforts to cater to the growing demand for cannabis concentrates.
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