Cannabis Concentrate Market - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 - (By Type Coverage, End-use Sector Coverage, Geographic Coverage and Leading Companies)

Cannabis Concentrate Market Set to Skyrocket, Reaching US$2.45 Billion by 2030

The global cannabis concentrate market is on an impressive growth trajectory, with market revenue expected to surge from US$1.6 billion in 2022 to a projected US$2.45 billion by 2030. This robust expansion is forecasted to occur at a healthy Compound Annual Growth Rate (CAGR) of 6.30% between 2023 and 2030, according to a recent report by Fairfield Market Research.

Key Growth Determinants:

1. Increased Use in Medicines: The acceptance and utilization of medicinal cannabis have been steadily rising as more countries legalize its use for various medical purposes. Cannabis concentrates, particularly those containing cannabidiol (CBD) and delta-9-tetrahydrocannabinol (THC), are being used to treat a range of conditions, including pain, spasticity in Multiple Sclerosis (MS), Lennox-Gastaut syndrome, Dravet syndrome, and severe forms of epilepsy.

2. Increased Adoption for Recreational Purposes: The legalization of cannabis for recreational use is providing regulatory control over the industry, leading to economic growth, job creation, and the reduction of enforcement costs. This change is fostering a thriving market for high-quality cannabis concentrates.

3. Legalizing Use of Cannabis Both Medically and Recreationally: The legalization of cannabis for both medical and recreational use in several countries has sparked a seismic shift in the industry, resulting in a booming cannabis concentrate sector. As a result, comprehensive solutions are becoming increasingly important to meet the growing demand.

Major Growth Barriers:

1. Lack of Access to Financial Assistance: Banking remains a significant challenge for the cannabis concentrate sector, as many countries still prohibit cannabis use. The legal uncertainty surrounding cannabis has led to reluctance among banks to provide financial services to cannabis concentrate businesses, limiting their access to resources.

2. Stringent Standards and Regulations: Varying regulations in different regions pose a significant challenge to market revenue. Each state or country has its own set of rules regarding cannabis concentrates, impacting labeling, packaging, and distribution.

Key Trends and Opportunities:

1. Policy and Regulatory Relaxation: Changes in regulations due to the COVID-19 pandemic and increasing legal frameworks for non-medical cannabis use offer opportunities for market growth. These changes are expected to enhance consumer access to cannabis products and boost consumption.

2. Cannabis Infused Edibles: There is a growing demand for low-dose edible products, which allow controlled recreational usage without the euphoric effects. Manufacturers are exploring various genetic enhancement techniques to meet this demand.

3. Novel Product Developments with Increasing R&D Activities: Companies are investing in research and development to create innovative cannabis concentrate products, such as pills, chewing gum, lotions, crystals, tablets, oil, and oro-mucosal sprays.

Top Segments:

1. Cannabis Oil Category Surges Ahead: In 2022, cannabis oils dominated the market due to their recognized benefits in treating sleep issues, stress, and anxiety. The demand for cannabis oils is expected to continue growing as more patients opt for oils over traditional flowers.

2. Recreational Sector Leads Other End-use Industries: The recreational category dominated the market in 2022, driven by the legalization of cannabis for recreational use in many U.S. states. However, the medical use category is also expected to experience substantial growth.

Regional Frontrunners:

1. North American Market Strongest: The United States leads the North American cannabis concentrate market, with legalization for both medical and recreational use in many states. This growing awareness of the therapeutic benefits of cannabis is creating numerous opportunities for industry players.

2. Asia Pacific’s Cannabis Concentrate Market Expects the Fastest Pace: The Asia Pacific region is witnessing significant growth due to evolving political landscapes and cannabis legalization in various Asian nations. The legalization of cannabis cultivation in Thailand is expected to drive demand, and research by the pharmaceutical sector is exploring the medical potential of cannabis.

Competitive Landscape:

The global cannabis concentrate market is currently consolidated, with a limited number of large companies. Major players are expanding their global presence through product launches and distribution network enhancements. Market consolidation is anticipated to continue in the coming years.

As the cannabis concentrate market continues its impressive growth, both for medicinal and recreational purposes, the industry's future looks promising. With evolving regulations and a focus on innovative products, the market is poised to offer numerous opportunities for investors and businesses alike.

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