The global CBD extraction equipment market is currently valued at around US$ 45.5 Mn, and is projected to reach US$ 152.4 Mn by 2032, surging ahead at a CAGR of around 12.8% over the next ten years.
Worldwide sales of cannabidiol (CBD) extraction equipment accounted for 4%-5% of the global oil extraction equipment market in 2021. Increased application of CBD extraction equipment in various end-use sectors such as pharmaceuticals, cultivation & processing, food & drinks, and other industries is projected to raise this share to 7-8% by 2032.
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The pharmaceutical and food & beverage end-use sectors promise significant growth and a dynamic shift in CBD extraction equipment. Moreover, technological advancements are paving the way for the CBD product market, and thereby, for extraction equipment. Additionally, political, social, and economic factors aid not only CBD extraction equipment suppliers but also consumer preferences for CBD products.
There is dynamically shifting customer preference toward advanced CO2 and solvent-based CBD extraction equipment, owing to need for efficient and precise CBD production in end-use sectors. Favorable government regulations for CBD product derived from hemp and marijuana will provide ample opportunities for CBD extraction equipment manufacturers during forecast period.
Intelligent and lean manufacturing will open up opportunities for market expansion
In order to effectively manage costs, there is an increasing focus on technology installation as well as digital enablement employing AI and machine learning. In the coming years, demand for CBD extraction equipment will increase due to next-generation technology built on IR4.0 and IR5.0, with energy-efficient standards that help save operational costs by incorporating technologies like self-cleaning systems.
Many manufacturers have begun incorporating automation technologies in the extraction process in response to the increased demand for CBD extraction equipment that could address current drawbacks. This technology is perfect for hygienic applications, such as those in the medical and food and beverage industries, because there is no direct contact between any extraction equipment and humans.
Key Takeaways from Market Study
- On the basis of type, the market is projected to be dominated by CO2-based extraction equipment, which is projected to account for 73.6% market share by 2032.
- North America is likely to be the most attractive region and utilize more than 3,400 units of CBD extraction equipment by 2032.
- By capacity, up to 2.5 Kg/h is likely to account for 38.2% revenue share and create an absolute $ opportunity of US$ 41.6 Mn over the assessment period.
- Marijuana-derived CBD extraction equipment is projected to grow 3X by value, while hemp-derived CBD extraction equipment will grow by 3.5X by 2032.
- The European market is expected to register a CAGR of 14.3% over the forecast period.
- Under end-use industry, pharmaceuticals is medical are estimated to account for approximately a 43.6% share in 2022, but is expected to lose 407 BPS in its market share by 2032.
”In recent times, the CBD market has witnessed normalization, commercialization, and liberalization, which will led to the expansion of the CBD extraction equipment market going forward,” says a Fact.MR analyst
Standard capacity CBD machine manufacturing has been a prominent approach by manufacturers for a long time. Changing government regulations for CBD products push manufacturers to change their strategies based on current norms. Prominent market players have started manufacturing customized products for specific purposes.
To meet the tailored requirements of the industry, market player are diversifying their product portfolios. Some CBD extraction equipment companies have started manufacturing equipment for emerging end-use industries such as food processing & beverages and cosmetics. However, government bodies across the world are imposing restrictions on the addition of cannabidiol in beverages and food items amid anecdotal clinical evidence, despite the industrial hemp having received a green signal, leaving consumers bewildered about the effects of Cannabidiol.
Vertical integration of business strategy is allowing manufacturers to keep ahead of other competitive market players. This includes integration of production the process and supply chain, including cultivation, extraction, and refinement operations. PAOG is on pace to introduce a CBD Nutraceuticals range of products that will generate income this year, in 2021.
Key Companies Profiled
- Gibraltar Industries
- ISOLATE EXTRACTION SYSTEMS (IES)
- Precision Extraction
- Accudyne Systems
- Henan Huatai Cereals and Oils Machinery Co., Ltd.
- Eden Labs
- Vitalis Extraction
- SFE Process
- Cedarstone Industry