The growth of the cannabis industry at large has been nothing short of explosive over the last five to six years. In 2014, total global cannabis revenues reached $3.4 billion. It would only take 4 years for that number to quadruple to $12.2 billion in 2018. If that isn’t exciting enough, then the current projections for 2021 and beyond will surely turn heads. According to the BDS Analytics report linked above, we could see cannabis revenues reach $31.7 billion by 2022.
Putting total revenues aside, what about specific sectors of the cannabis marketplace? Say, the extraction industry. Fortunately, the projections appear to be just as robust — at least that’s what data from Grand View Research shows. In 2017, the global extraction industry was valued at $4 billion and would further mushroom to reach a valuation of $7.3 billion in 2019. This increase in growth can be attributed to multiple factors, one being the increased usage of cannabis oils and tinctures in medicinal applications, such as for cancer patients and those experiencing nausea or psychological issues. Compared to flower, cannabis extracts can be consumed in a variety of ways with relative ease — think oral tinctures, vaporization, etc.
Particularly, full spectrum extracts accounted for the biggest slice of the extraction pie with a valuation of $4.3 billion in 2019. It’s been estimated that full spectrum extracts will see a compound annual growth rate (CAGR) of 20% by 2027. It would be safe to assume that we can see continued growth throughout 2020 as extraction-based products gain traction with consumers in the United States — not to mention the fact that cannabis legalization continues to sweep across the country.
Zooming out from U.S. markets, the extraction industry is projected to massively grow on a global scale. Currently, North America owns most revenue shares, valued at $6.4 billion, whilst Europe accounted for the second largest revenue percentages, with Italy being the largest consumer of extraction products. An interesting example of future growth for extraction products is Israel with a CAGR of 34.4% from 2020 to 2027. The stars are seemingly aligned for the time being.
On both a domestic and global scale, things appear to be surging forward for the extraction industry. In lieu of the recent COVID-19 pandemic and the subsequent economic downturn we are currently experiencing, 2020 predictions for the extraction industry can certainly change. That said, there is still great cause for celebration as the cannabis industry continues to draw increased interest within the United States and Earth at large.
