Cannabis Extract Market Size, Share & Industry Analysis, By Extract Type (Full-Spectrum Extracts, Broad-Spectrum Extract, and Isolates), By Source (Hemp-Derived, Marijuana-Derived, and Synthetic / Semi-Synthetic Cannabinoids), By Form (Oils and Tinctures, Concentrates & Extracts, Capsules & Softgel, Edibles, and Vapes & Cartridges), By Application (Medical/Pharmaceutical, Recreational/Adult‑Use, Wellness/Nutraceutical, Cosmetics & Personal Care, and Food & Beverage), and Regional Forecast, 2025-2032

The global cannabis extract market size was valued at USD 14.32 billion in 2024 and 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. North America dominated the global market with a share of 86.24% in 2024.

Cannabis extract is a concentrated form of bioactive compounds that is derived from the Cannabis sativa or Cannabis indica plant. Extraction methods include mechanical, chemical, or solvent-based processes that help extract compounds possessing therapeutic, psychoactive, and aromatic properties. The increasing use of these extracts for therapeutic and pharmaceutical product manufacturing is a major factor fueling demand.

Companies such as Canopy Growth Corporation, Tilray Brands Inc., and Aurora Cannabis Inc. are some of the key players operating in this market. Companies are investing in the research and development of advanced technology to produce high-quality extracts for pharmaceutical and other industrial applications. 

MARKET DYNAMICS

MARKET DRIVERS

Favorable Regulatory Policies Support Market Growth

Several countries are developing frameworks that help to legalize the use of cannabis extract for medical and recreational purposes. This includes countries such as the U.S., Canada, European Union countries, and others that have even established regulatory frameworks to supervise the commercial sales and production of cannabis. This commercialization and normalization of cannabis production and usage play a pivotal role in supporting the market’s growth.

MARKET RESTRAINTS

High Production Costs to Impede Market Growth

Extraction of extracts from cannabis requires advanced technology and refinement methods. Moreover, companies need to ensure high product quality, purity, and safety to ensure their use across various industries in products suitable for human consumption. This includes the use of an advanced refinement system, GMP-certified facilities, and high capital investment for production. This means that companies need to invest heavily in initial production and R&D-related expenditures. Such high financial requirements make it difficult for small manufacturers to operate and maintain a high profit margin.

MARKET OPPORTUNITIES

Research and Development Related to Cannabinoid-Based Pharmaceuticals Creates Opportunity to Explore Untapped Application Areas

Healthcare and pharmaceutical manufacturers are increasingly using cannabis to create new product formulations for different industrial applications, including healthcare products. Ongoing research is evaluating the effects of CBD, THC, and other cannabinoids in treating chronic pain, neurological disorders, anxiety, and cancer-related symptoms. Extract manufacturers may partner with pharmaceutical companies to develop cannabidiol (CBD)- medical-grade products for a range of conditions. These developments present opportunities for market growth in new application areas.

CANNABIS EXTRACT MARKET TRENDS

Popularity of Plant-Based Wellness Products Among Consumers is a Key Trend Influencing Market

Natural cannabis plant-derived wellness products are growing in popularity among consumers. In recent years, more consumers are inclined toward natural products that can provide relief against ailments, and thus they are opting to purchase cannabis infused oils, pharmaceuticals, and edibles. This growing demand for such products is attributed to the increasing demand for clean-label products. Hence, manufacturers are using raw materials that are sourced ethically and sustainably. As consumers seek more holistic wellness experiences, products providing the entourage effect are emerging as a key driver in the cannabis extract market growth.

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Segmentation Analysis

By Source

Marijuana-Derived Segment Led Market Due to High Concentration of Therapeutically Active Cannabinoids

By 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. Such extracts contain a higher quantity of tetrahydrocannabinol (THC), CBD, CBG, and CBN, making them suitable for manufacturing medical-grade products. Products manufactured from such sources help to manage chronic pain, nausea, muscle spasticity, and appetite loss.

The hemp-derived segment is expected to grow at a Compound Annual Growth Rate (CAGR) of 15.25% over the forecast period. Though hemp contains 0.3% THC, it is legally permitted in several countries, which contributes to its wide usage.

By Form

Vapes and Cartridges Accounted for Major Market Share Due to High Bioavailability

The market is segmented by form into oils and tinctures, concentrates & extracts, capsules & softgel, edibles, and vapes & cartridges.

The vapes & cartridges segment accounted for the largest market share in 2024. Such products have high bioavailability and provide quick relief to the users. Hence, such form is popular among consumers who are seeking immediate relief from chronic pain, anxiety, or nausea, as well as for recreational users.

The edibles form is another major segment that is expected to grow at a CAGR of 16.38% during the forecast period. This form of product is popular among consumers who want long long-lasting impact of cannabis.

By Extract Type

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 types of extracts provide synergistic interaction between multiple cannabinoids (THC, CBD, CBG, CBN, and others. It is favored in medical cannabis applications and is used for treating pain, inflammation, anxiety, and sleep disorders.

The broad-spectrum extract segment is another major segment that is expected to grow at a CAGR of 16.47% during the forecast period. It appeals to consumers who prefer safe, legal, and effective formulations that offer multi-compound benefits.

By Application

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Legalization of Cannabis Contributes to Higher Share of Recreational/Adult‑Use Segment

The market is segmented by application into medical/pharmaceutical, recreational/adult‑use

wellness/nutraceutical, cosmetics & personal care, and food & beverage.

The recreational/adult‑use segment accounted for the highest cannabis extract market share in 2024. As recreational usage has been legalized across key markets such as Canada, the U.S., and several European nations, it has normalized the consumption and created regulated retail systems which offer high-quality cannabis products in the market product quality and safety.

Medical/Pharmaceutical is another major category with a CAGR of 16.61% during the forecast period. Increasing scientific evidence and clinical research supporting its therapeutic potential support its usage in the pharmaceutical sector.

Cannabis Extract Market Regional Outlook

By geography, the market is categorized into Europe, North America, Asia Pacific, South America, and the Middle East & Africa.

North America

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North America takes the lead in the global market. The market in North America is estimated to reach USD 14.16 billion in 2025. The U.S. and Canada have established a clear regulatory framework, which has legalized the cannabis industry and therefore paved the way for cannabis manufacturers to research and develop new products for wide industrial usage. Legalization of cannabis in the region has created a favorable environment for manufacturers and consumers to purchase and consume such products. In 2025, the U.S. market is estimated to reach USD 11.82 billion. The U.S. is the largest consumer of cannabis extract in the world. Around 37 states have legalized medical cannabis, and 24 states allow recreational usage. This legalization has increased the accessibility of cannabis products to consumers.

Europe

The market in Europe is estimated to reach USD 0.99 billion in 2025 and secure the position of the second-largest region in the market. Countries such as Germany. The U.K. and the Netherlands have established a legal framework to govern the sales of medical-grade cannabis extract. Such regulation enables the entry of licensed prices, importers, and distributors in the region. Medical practitioners are prescribing cannabis extract-based pharmaceuticals to manage pain caused by chronic pain, spasticity, multiple sclerosis, epilepsy, and anxiety disorders. During the forecast period, the European region is projected to record a growth rate of 14.59%. Backed by these factors, countries such as Germany are expected to record valuations of USD 0.28 billion, France USD 0.05 billion, and the U.K. USD 0.22 billion in 2025.

Asia Pacific

The Asia Pacific market was valued at USD 0.42 billion in 2024, and is also one of the fastest-growing markets global. The market in the Asia Pacific is estimated to reach USD 0.48 billion in 2025. Some of the countries in the region, such as South Korea, Thailand, Australia, and others, have legalized the medical use of cannabis. However, China, Japan, and Indonesia maintain strict prohibitions on the cultivation, restricting the sales of products in these countries. Countries such as Australia, Japan are some of the largest consumers in the region, and they are increasingly adopting high-quality cannabis extract methods for usage in different industries. In this region, Australia and Japan are estimated to reach USD 0.27 billion and USD 0.06 billion, each, in 2025.

South America

South America will witness a high growth in this market over the forecast period. The South America market in 2025 is set to record USD 0.45 billion. Countries such as Brazil, Colombia, and others use cannabis as a cash crop that can lead to economic development opportunities, particularly with the increased usage in agriculture and pharmaceutical sectors.

Middle East & Africa

In the Middle East & Africa, South Africa's market forecast is set to grow at a CAGR of 13.10% during the forecast period. South African Health Products Regulatory Authority (SAHPRA) has allowed the use of CBD (cannabidiol) extracts for health and wellness purposes, supporting the market’s growth.

COMPETITIVE LANDSCAPE

Key Industry Players

Product & Technological Innovation are Key Strategies Used to Differentiate Products

The market exhibits a fragmented structure, with intense competition among market players operating in this segment. The dynamic regulatory changes in several countries worldwide, combined with the expansion of extraction technologies, are causing rapid market changes.

Product innovation is one of the major strategies companies are adopting, utilizing advanced extraction technology to develop high-quality solutions that find applications across multiple industries. Many companies are vertically integrating their production processes to control cultivation, extraction, product development, and distribution, ensuring high-quality control. 

LIST OF KEY CANNABIS EXTRACT COMPANIES PROFILED

• 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)

KEY INDUSTRY DEVELOPMENTS

• October 2025 – OneStep launched a next-generation cannabis extraction system to develop high-quality cannabis products. This new system is built on electromagnetic TFE closed-loop technology. 
• October 2025 – Medical cannabis startup Awshad launched 6500mg of CBD oil in the market. This product provides relief from chronic pain, cancer, epilepsy, severe anxiety, and insomnia.   
• March 2024: Leading cannabis manufacturer Tilray Brands, Inc. received approval for its first medical cannabis extract, Tilray Oral Solution THC 5 CBD 20. It is available for medical patients in Portugal.
• March 2024: Linneo Health launched an industrial cannabis derivative portfolio in the market.  The portfolio includes active pharmaceutical ingredients and medicinal dosage form products.
• July 2021: Humble & Fume Inc., one of the leading integrated cannabis distribution platforms in North America, launched FUME, a cannabis extracts brand that delivers a pure and flavorful cannabis experience to consumers.   

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Report Scope & Segmentation