Global Cannabis Extraction Market to Reach $36 Billion by 2032
Global Market Insights Inc. sees the global cannabis extraction market hitting an estimated valuation of $36 billion within the next 10 years, as more countries pass legislation toward the regulated and legal use of cannabis and cannabidiol (CBD) extracts.
Between 2023 and 2032, the market value is expected to generate a 21% compound annual growth rate (CAGR), with the North American region expected to hold the largest revenue share as it did in 2021. Besides increasing government approval, this foreseen market progress accounts for pharmaceutical, beauty, health, and pet products with CBD oil obtained through ethanol extraction, hydrocarbon extraction, or other lab extraction processes.
Medical and Cosmetic Applications Benefit Cannabis Extraction Market
Studies show that CBD oil is widely utilized to manage several medical conditions, including body pain, mental health disorders, and cancer-related symptoms. In the U.S. alone, cannabis retail sales for medical use are estimated at $11.1 billion in 2023, while in Europe, approved CBD-based medicines like cannabis edibles are likely to result in a $9.5 billion market value by 2032. These developments, together with better adoption of cannabidiol oil in other countries, should propel the market segment worldwide past its value of over $2.5 billion in 2022.
Global Market Insights Inc. also foresees personal and skincare products infused with CBD extracts that pass quality control playing a pivotal role in the overall cannabidiol extract market growth by 2032. The firm speculates in its recent report a CAGR of more than 23% as usage of CBD-based cosmetic products surges in succeeding years.
Legal Cannabis Market in the U.S. to Grow 12% in 2023
Other than the growing CBD extraction market in the country, the legal U.S. cannabis market will likely reach $29.6 billion by the end of 2023, with sales from U.S. markets comprising 80% of the $36.7 billion estimation of the gross global legal cannabis industry in 2023, according to BDSA.
Estimated Total Sales of Legal Cannabis in New York and Minnesota from 2023 to 2027
Roy Bingham, Co-founder and CEO of BDSA, the leading provider of market intelligence for the cannabis industry, said the Midwest and East Coast markets are the primary drivers for this growth in the next five years.
The latest BDSA report shows legal adult-use New York and Missouri cannabis sales will hit $631 million and $1.4 billion by the end of 2023, respectively. Less than half of the legal sales in Missouri in 2023, sales in New York are seen to grow by a CAGR of 71% and reach $2.5 billion by 2027.
Projected Gross Sales of Legal Cannabis in Select U.S. States in 2027
Sales in California and Pennsylvania, while experiencing declines, remain significant contributors to the legal U.S. cannabis market this year. Also driving the steady growth is Illinois, where total spending will likely exceed $2 billion before 2023 ends, with an 8.3% jump due to the roll-out of new licenses. Meanwhile, new markets opening in July 2023 onwards, such as Maryland, Delaware, Minnesota, and Florida, can further boost the cannabis market growth in the U.S. in the coming years.