The cannabis industry has been steadily growing as medical programs are established and adult use is legalized across states and countries. However, perhaps the fastest expansion exists in the extraction space. According to an analysis report from Grand View Research, the extraction niche was valued at $7.3 billion in 2019 (globally) and is projected to increase to a net worth of $28.5 billion by 2027.
Top extraction companies are set up to be vertically integrated, enabling them to grow, process, and produce some of the best premium extracts. Here are three of the largest North American extraction companies of 2020.
Canadian-based company WestLeaf focuses on the retail experience with diverse cannabis brands spread across many locations. Thanks to their exclusive partnership with the processing and extraction partnership firm Xabis in Colorado, and a 60,000 square foot extraction facility, WestLeaf aims to establish itself as one of the largest vertically integrated cannabis businesses in North America. The company is currently rebranding itself as Decibel Cannabis Company.
2. Neptune Wellness Solutions
With locations in the U.S. and Canada, Neptune is a wellness company that has been in business for many years, manufacturing products like seed oils, supplements, and pet supplies. However, it wasn’t until the last two years that Neptune entered the cannabis space, announcing their agreement in 2018 with Canopy Growth—one of the biggest names in the wider industry. Neptune received their processing license in Canada in January of 2019 and is poised to be one of the biggest brands in the extraction space with facility input capacity cited at 200,000 kg of dried cannabis.
3. Valens GroWorks
The Valens Company, formerly branded as Valens GroWorks, is one of Canada’s largest cannabis companies. According to 2020 company catalogue, Valens processed 80,000 kg of cannabis and hemp into various extracts in a year and launched 85 new stock-keeping units (SKUs). Recently, they were awarded wholesale licensing by Australia for medical cannabis.
Cannabis Extraction Companies Poised for Continued Growth
As more U.S. states and other countries legalize recreational sales and establish medical programs, the extraction niche will continue to flourish. With more rational cannabis laws, production increases, and more companies may seek to vertically integrate from seed to concentrate to achieve economies of scale.