Cannabis Extract Market Trends

Growth Drivers:

• Growing Consumer Awareness and Government Support: Individuals across the globe are steadily overcoming social stigma and accepting cannabis due to growing research on cannabis, media coverage, and personal testimonies. Many governments and NGOs are extending help in educating people about benefits of cannabis and responsible consumption. For instance, in September 2022, Governor Lamont announced the launch of education campaign to promote responsible use of cannabis by adults. Many countries are legalizing cannabis for medicinal and recreational use. Cannabis legalization provides an opportunity to keep regulations in place and minimize the potential harms. This has resulted in more number of people opting for cannabis extracts, thereby increasing the global demand.
  
  Cannabis extracts enable effective and targeted delivery of specific cannabinoids that help in providing instant relief for several medical conditions. This has also encouraged healthcare professionals to use cannabis therapy. According to an article published in National Library of Medicine (NIH), many research groups and pharmaceutical companies are working on improving cannabinoid bioavailability and establish its therapeutic efficacy and dose range. 
• Product Innovation and Investments: Many leading companies and cannabis product manufacturers are heavily investing in R&D activities to develop novel formulations of cannabis extracts and products such as tinctures, oils, edibles, and even topical ointments to cater to the rising consumer demand. Some companies are also partnering with wellness firms and pharmaceutical companies to launch new products and expand their production capacities. For instance, in December 2023, GUNKUL partnered with DOD BioTech Public Company and Pacific Cannovation Group (PACCAN) to strengthen its position in the cannabis and hemp industry.  Another instance where Blue Sky Hemp Ventures Ltd, acquired True North, a Canadian hemp-based CBD product company in 2022 as its technology aligns with Blue Sky’s focus on utilizing whole plant for hemp foods and extracts.  

Challenges:

• Stringent Regulatory Norms and Consumer Unawareness- Consumption of cannabis for recreational or medical use is still illegal in many developing economies. This can lower the sales of cannabis extract and hamper overall market growth going ahead. Along with this, many consumers are unaware of various types of extracts available which can alter purchasing behaviour and market growth.
• High Manufacturing Costs: Manufacturing of cannabis extracts is expensive as it requires advanced extraction facilities and high-quality cannabis. Moreover, there is dearth of skilled labor capable of handling the equipment effectively. This can result in low-quality production and affect the market growth.