A new market report predicts that cannabis concentrates like hash, oils, and waxes will rake in over $13 billion annually.
Cannabis concentrates are sweeping the industry — and the legalization movement — into a veritable sativa storm. A new market analysis predicts the concentrates sector will surpass $13 billion in sales by 2026. For comparison, the food delivery company Grubhub is currently valued at around $12 billion.
The report, produced by Zion Market Research, said the global concentrates market was worth about $3.73 billion USD in 2018, an increase of nearly 50 percent from the previous year.
Concentrates may be one of the most confusing areas of the weed scene, especially to newcomers. Conventionally, a cannabis concentrate is any weed product that’s (1) not buds and (2) boasts a higher THC percentage than buds do on average. Concentrates include several product categories such as waxes, shatters, oils, crumbles, hashish, live resins, sauces, isolates, distillates, and good ol’ fashioned kief, with potencies ranging between 50 to 90 percent THC, depending on the product and the process.
The Zion report additionally claimed that the concentrates market’s compound annual growth rate (CAGR) from 2019 to 2026 would hover around 17 percent. Previous analyses from the cannabis data firms BDS Analytics and Arcview Market Research estimated the concentrates industry would sell $8 billion worth of product in 2022, indicating Zion’s predictions fall in line with expected trends.
Why are cannabis consumers going crazy about concentrates? Obviously, concentrates get people higher than conventional flower. Like way, way higher. Medical patients who require large doses of THC may also find comfort in concentrates, which require less consumption to achieve the same effects one would get from smoking buds. For those of you who’ve never puffed on concentrates, if smoking buds is like sipping beer, dabbing or vaping concentrates is like taking straight shots of Everclear.
Speaking of vaping, the popularity of vape pens may be the primary driver behind rapidly escalating concentrates sales. Some vape pens can vaporize raw flower, but most use cartridges filled with cannabis concentrates. And since vape pens offer discreetness — they’re usually tiny and don’t produce much of the tell-tale weed smell — consumers who are perpetually on-the-go favor this form of toking, particularly in markets like California.
Will Zion and BDS/Arcview’s figures hold up? As the saying goes, only time will tell, as market predictions keep shifting with every new legal, political, and industrial development regarding regulated weed. But so far, the predictions have only increased in value, as it’s looking like federal reforms or all-out legalization may be coming soon.
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Source of article: https://merryjane.com/news/weed-concentrates-may-be-worth-more-than-grubhub-by-2026