Innovations in Cannabis Extracts Entice New Demographics

by Gastautor

A byline by Michael Sassano

Interesting trends emerge when we examine the largest extract markets in the global cannabis industry. These trends suggest that innovations drive new demographics to adopt extracted cannabis products as their consumption method of choice. Let’s examine a few established markets globally leading extract procurement. 

US Cannabis Consumers Have Access to Original, Innovative Products

The trend toward diverse extract products to serve a diverse customer base was clear in United States markets even over a decade ago, as more and more varieties of extracts emerged to satisfy each individual’s preference. Oral drops, sublingual cannabis strips, gel caps, gummies, drinks, chocolates, transdermal applications, lotions, gels, concentrates, shatters, crumbles, vapes, and so many more creative formulations increased in the United States. The sheer volume of choice drives accessibility as patients and consumers can easily find products to fit their needs. 

German Cannabis Extracts Are Poised for Growth in Concentrates and Beyond

Germany has the potential for an advanced cannabis extract industry, but, in reality, the sector lags. Cannabis has been legal in Germany since 2017, yet extracts have not advanced past basic oral drops made from bad-tasting crude oil and with limited differentiation. 

At present, extracts only comprise 20% of the consumer market. Germany only has 13 extract brands, and even among the most popular, the products offered are basically the same. 

The most significant player, by a large margin, is Tilray, with around 50% of the insured German cannabis extract market share. They were the first to offer extracts in Germany and had the most robust sales teams. Tilray’s market share reflects its success in arriving on the market first and creating an extract that was easy to understand and dispense. Other extract brands in Germany made virtually identical products and spent millions trying to unseat Tilray, and it’s taken years for these companies to begin innovating. I’m hopeful we will soon see innovative products opening up more demographics and addressing the need for diverse offerings. 

With the recent news surrounding German cannabis legalization, the German market is about to change dramatically. German operator’s extract offerings will begin to match those of the more robust markets.

UK Cannabis Extracts Embody Slow and Steady Concentrate Development

The United Kingdom is an example of a market in the middle of the scale between innovation and stagnation. Extract innovations are occurring at a good pace; there is a mix of older-generation products, like in Germany, but newer form factors and innovations are prominent, too. 

Extracts make up roughly 20% of the market in the U.K., too, but 63 registered extract formats are available to consumers. The top extract brand in the U.K. is CuraLeaf. 

Most of the market share still goes to outdated crude oil oral drop solutions, mainly due to the cost, but other form factors like vaporizers and gummies are reshaping the way U.K. patients consume their cannabis. As more high-quality extracted products enter the market, more demographics that simply don’t like smoking and hate the taste of crude oil will adopt cannabis.

Australian Cannabis Extracts Lead the Way in Patient Choice

Australia is the land of choice, with well over 300 extract products listed on the market and an overall extract market share of 25% and growing according to data available from NostraData. The proliferation of clinic chains outside the traditional pharmacy model means the true extent of sales, especially in less common formats, is unknown. However, financial performance shows extracts to be an increasingly large market sector. 

Judging by the point-of-sale pharmacy data available from NostraData in 2023, Cannatrek is the number one Australian extract brand. The brand holds a dominant position over other manufacturers like Althea, Little Green Pharma and Levin Health

Aurora’s buyout of MedReleaf illustrates the increased attention Australia commands from the public North American verticals such as Aurora Cannabis, Cronos Group, and Canopy Growth due to the potential size and breadth of the Australian market. 

There are many differences between the extract industries in Germany, the U.K. and Australia, primarily based on the Australians’ ability to source products from other countries; they require GMP certification but not the EU-GMP certification needed for European countries and the U.K. This makes it even easier for Australian cannabis distributors to obtain diverse extract products since there are so few EU-GMP manufacturers — and even fewer that have concentrated on compiling a diverse portfolio. 

Cannabis Extracts in Emerging Markets

Emerging markets like France, which will follow finished dosage frameworks, will prioritize product diversity and individualism for acceptance. 

Other extract-only countries like Spain and Brazil are just starting to explore early-stage products. These markets will soon advance to higher-stage products with time and regulations; they will begin with crude extracts, move into different forms of oral drops that taste and perform better, and then advance to other more popular form factors like vapes and gummies. EU-GMP manufacturers are responsible for developing more products, and regulators who prohibit certain form factors share the responsibility for innovation. 

The Future of Innovation in the Global Cannabis Extract Industry

The U.S. has a nearly 40% share of extracted products, with distributors carrying every form consumers demand in competitive markets. Regulations — or lack thereof — created opportunities for extracts to reach every demographic of adults. The global markets are just starting to wake up to diversity as new forms of oral drops, vaporizers, and edibles enter the markets. The trend toward improving offerings will spur the adoption of extracts. Flower will always be king, but an equally influential percentage of people prefer extracts as a sustainable treatment for whatever ails them.

About the author

Michael Sassano, Founder, CEO, and Chairman of the Board for SOMAÍ Pharmaceuticals, a European pharmaceutical and biotech company centered on manufacturing in Lisbon, Portugal, and globally distributing EU GMP-certified cannabinoid-containing pharmaceuticals.

Disclaimer: Bylines by external contributors must not reflect the opinion of the editorial team. If you want to contribute as an external expert please reach out to redaktion@krautinvest.de.

Leave a Comment