As the cannabis industry continues to grow and more states legalize the substance, businesses and manufacturers are getting crafty with their products and offering more than just flower. Now, consumers can find vapes and dabs on the menus of many dispensaries. Because of this, MaryJane just announced that the global extracts market is expected to top $32.5 billion with a ‘b’ by 2030.
- What Are Cannabis Extracts?
- The Popularity of Cannabis Extracts
- The Evolution of Cannabis Extracts Over the Years
- The Future of Cannabis Extracts
- Cannabis Extracts are a Slow Trend Outside of the US
What Are Cannabis Extracts?
Cannabis extracts refers to a broad range of products that generally contain higher levels of cannabinoids than are found in the cannabis plant. Extracts can vary widely in their THC and CBD concentrations — some can have up to 99 percent THC, whereas others can be mostly CBD with little THC.
Cannabis extracts can be in a solid form, such as hash or hashish, or in liquid form, such as oil intended for vaping. Some extracts are named after their appearance or consistency, such as shatter, wax, honeycomb, and budder. They are typically smoked or vaporized, and some can be added to dried cannabis flower.
The Popularity of Cannabis Extracts
“Cannabis extracts are popular for many different reasons. The first reason is that the flower itself is a lot more cumbersome. Extracts make it easier to smoke hashes or similar pieces, and you can also put it in edibles and pens, so it is much easier and more versatile than just having a plant or dry material,” Matthew Ellis, Founder and CEO of ExtractionTek Stainless, said. “The second reason is that extracts have less smell and residue, making them easier to use in public. There is more versatility for extracts and they have a longer storage space life, making them more valuable.”
Growing legalization of cannabis in various countries, preference for cannabis oil and tinctures, and adoption of medical marijuana for treating chronic diseases like arthritis, anxiety, and Alzheimer’s are the major factors propelling the growth, according to FinancialNewsMedia. More specifically, the oils segment is expected to dominate, with full spectrum products following closely behind. Ellis says that some of the best-selling cannabis extracts on the market right now are live resin pens, dabs, jitters, and waxes.
The Evolution of Cannabis Extracts Over the Years
According to Ellis, in the beginning, manufacturers were creating extracts such as shatters and waxes, but users had no way of smoking them. In the place of a pipe or vape, users would take a hot knife, put a dab on it, and then smoke it. Technology has made it so that we now have vaporizing pens and other mediums for smoking extracts.
“The products have evolved, and science has evolved the cannabis industry as a whole,” Ellis said. “At a certain point, science came in and helped to improve different product lines, get more specific doses, and create cleaner cannabis that is free of pesticides and other harmful chemicals. Technology has come a long way to ensure clean and healthy products.”
The Future of Cannabis Extracts
Now that cannabis products are becoming more commonplace, prices are finally beginning to stabilize. When cannabis first becomes legal in a state, the prices skyrocket because there is such a high demand and not that many dispensaries in the area. Once more retailers hit the streets, prices start to go down, which is what we are now seeing in the states that have offered legal cannabis for a few years.
“The coolest thing about federal legalization that will help everyone is that banking will be easier. So for all of my customers that cannot write anything off in this industry, that will make them feel a lot better and have more cash to buy more equipment and do better things for their business,” Ellis said. “I just think it will be a much slower process since states will have to vote on it and give up revenue in tax dollars, so it will be very interesting to see what happens, but I do not think it will be an overnight switch.”
The future of the CBD extracts market also looks promising. According to the Global CBD Ingredients Growth Opportunities analysis from Frost & Sullivan, the global trend in legalizing CBD and scientific research supporting its benefits to human health will inflate demand for CBD ingredients. The global market for CBD is expected to reach $4.09 billion by 2030 from $1.80 billion in 2021, registering impressive expansion at a compound annual growth rate (CAGR) of 10 percent.
“In the medium to long term, CBD and other cannabinoids and terpenoids will find acceptance as part of daily consumer products,” Matias Guarnera, Chemicals, Materials & Nutrition Analyst at Frost & Sullivan, said in a release sent to Leaf Retailer. “Additionally, with the resolution of regulatory issues in the days ahead, CBD will become a common ingredient in food and beverage, dietary supplements, and personal care products.”
Cannabis Extracts are a Slow Trend Outside of the US
Ellis says that currently, there are some extracts that are being sold in the EU, as well as some countries in South America such as Columbia that are selling CBD extracts and pushing it into the EU with distillates, but otherwise cannabis extracts are not very popular outside of the US. There is a very large market for marijuana in Germany and France, but they are still trying to figure out the best way to consume it and are diving further into its medicinal benefits.
As more time passes, science and technology will continue to develop cannabis and the extracts market, hopefully bringing it to other developing countries. Even though we still have a long way to go before we hit federal legalization, there is hope for the industry and products will only continue to get better from here.