CBD Extraction Equipment Market

CBD Extraction Equipment Market Outlook (2022-2032)

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.

Report Attributes	Details
CBD Extraction Equipment Market Size (2021A)	US$ 40.9 Mn
Estimated Market Value (2022E)	US$ 45.5 Mn
Forecasted Market Value (2032F)	US$ 152.4 Mn
Global Market Growth Rate (2022-2032)	12.8% CAGR
North America Market Share (2022)	53.9%
China Growth Rate	11.4%
Market Share of Top 5 Companies	~35%
Key Companies Profiled	Gibraltar Industries ISOLATE EXTRACTION SYSTEMS (IES) Precision Extraction Accudyne Systems Henan Huatai Cereals and Oils Machinery Co., Ltd. Maratek Eden Labs Vitalis Extraction SFE Process Cedarstone Industry

When extracting marijuana- or hemp-derived CBD, the process includes the extraction of specific molecules (CBD, THC, CBG, etc.) from over 125+ different cannabinoids, and the process must conform to the required standards. The extraction process encompasses several steps of the cannabis- or hemp-derived CBD extraction, distillation, and purification process.

CBD extraction processes are broadly classified into two types - solvent (ethanol, CO2, hydrocarbon) and non-solvent (mechanical, water and ice) based.

CBD Extraction Equipment Demand Analysis (2017-2021) Vs. Market Outlook (2022-2032)

According to the recent analysis by Fact.MR, a market research and competitive intelligence provider, utilization of CBD extraction equipment witnessed a growth rate of 6.3% over the past half-decade. This was due to extensive demand from end-use industries owing to favorable government regulations.

Demand for CO2 extractor equipment is projected to increase at a noteworthy CAGR of 12.7% over the decade. This is owing to increased use of CBD-infused food and beverages across prominent regions.

Moreover, high application in the personal care and cosmetics end-use sector is projected to supplement the demand curve over the assessment period.

Early cannabis extractors began to invent methods of concentrating parts of the cannabis plant, thereby increasing the potential use of its medicine and sacrament.

A few decades ago, CBD extraction equipment systems were only used in vital industries such as medicine and pharmaceuticals. However, it has now become more popular in personal care & cosmetics, food & beverages, and cultivation & processing end-use industries across the globe.

Accelerating demand for CBD extraction from hemp is projected to provide a thrust to market development over the decade, especially in North America and Europe. Surging utilization of CBD extraction equipment in these regions is projected to create an absolute $ opportunity of US$ 64.3 Mn and US$ 30.7 Mn, respectively, over the forecast period.

Furthermore, swelling use of CBD products in the personal and cosmetics industry is likely to supplement the growth of the market throughout the assessment period, and likely to surge CBD extraction equipment sales 2.9X over the same period.

Why Will CBD Extraction Equipment Manufacturers See Positive Demand Growth?

“Favorable Government Regulations for Cannabis Use to Create Market Opportunities for Suppliers of CBD Extraction Devices”

The cannabis market saw a dramatic change over the past decade. Cannabis and CBD legalization in different countries will prove to be one of the most consequential socio-economic movements.

In the last two years, 20 countries such as USA, Brazil, South Korea, Australia, and other have legalized some form of cannabis such as CBD products. Additionally, a total of 10 countries, including Canada, Mexico, and South Africa have legalized cannabis for adult use, an almost two-times increase in numbers from 2019.

The global CBD extraction equipment market continues to evolve in a positive direction with increase in legal access to cannabis products. This will lead to regulatory structures and societal norms varying greatly. Further, favorable government policies and government aid to private research & medical institutes and growing business spending on R&D will help catalyze demand for CBD extraction equipment.

“Solvent-less Cannabis Extraction Going Big With New Technology Integration”

The solvent-less cannabis extraction method is going commercial at a rapid pace since the 2019 vaping crisis. The solvent-less extraction process uses pressure, heat, water or ice to extract CBD, leaving terpenes as there are no traces of harmful chemical residue in the CBD product. Thus, these solvent-less extraction products are gaining customers among CBD purchasers.

According to the Fact.MR study, solvent-less products in CBD are contributing to a rise of the concentrated CBD sector, which has grown 17.6% in 2021 from 2020 in five states in USA. This is anticipated to generate numerous growth prospects for CBD extraction equipment manufacturers over the coming years.

“Intelligent and Lean Manufacturing to Provide Scope for Market Growth”

Increasing focus on technology implementation along with digital enablement using AI and machine learning reflects a new-generation transformation mindset for effective cost management. Next-generation technology based on IR4.0 and IR5.0, with energy-efficient standards that help reduce operational costs by integrating technology such as self-cleaning systems, will boost demand for CBD extraction equipment in the next couple of years.

Responding to the growing need for CBD extraction equipment that could overcome existing shortcomings, many manufacturers have started integrating automation technologies in the extraction process. In this technology, there is no direct contact of any extraction equipment with humans, making it ideal for hygienic applications, such as in the medical and food & beverage industries.

Overall, this will aid in bringing about a reduction in the total cost of ownership and operations.

What Market Restraints Might CBD Extraction Equipment Suppliers Face?

“Rising Price Complexity and Associated Extraction Risks to Affect Sales of CBD Extraction Equipment”

High production cost and unavailability of key raw materials are considered as the foremost restraints for the CBD extraction equipment market. This results in price complexity, since CBD extraction equipment costs more to produce, and is manufactured using costly materials that have a higher lifespan and are more durable.

Nickel carbide, ceramics, aluminum, brass, and PVDF are prominent materials used in high pressure environment, ranging from 1,000 psi to 10,000 psi, and account for considerable demand in the CBD extraction equipment industry. An average CO2 CBD extraction equipment costs around US$ 20,000 and produces 10-15 lbs. in one day.

Besides, extraction methods involve flammable liquids and gases that produces harmful gases. In addition, inappropriate design, modifications, maintenance, and installation of equipment can easily result in an explosion. This is where research can be important to overcome this restraint and help develop better CBD extraction equipment products.

Country Wise Analysis

What Makes the United States the Growth Epicenter for CBD Extraction Equipment?

A significant number of investments are being made in the development of CBD extraction equipment in the dynamic industrial goods industry in USA. This happened after the 2018 farm bills legislation. These CBD extraction equipment are equipped with advanced technology, which will make them automated and increase efficiency and accuracy.

The U.S. cannabidiol extraction equipment market is predicted to expand at a CAGR of 14.2% as a result of these factors. Growing number of manufacturers that are acquiring control over the market and providing such platforms at fewer prices would aid regional market growth.

Why is Australia & New-Zealand on the Focal Point of Market Players?

The Asia Pacific cannabidiol extraction equipment market is predicted to reach new heights in parallel with pharmaceutical and food & beverage industry growth, resulting in a higher share of the CBD extraction equipment market.

Australia & New Zealand are likely to lead the Asia Pacific market by accounting for approximately 34.1% market share. In addition to this, the Australia & New Zealand cannabidiol extraction equipment market is anticipated to account for US$ 5.3 Mn by the end of 2032, expanding at a significant CAGR of 10.5%.

Category wise Insights

Why is CBD Extraction Equipment Highly Used in the Food & Beverage Sector?

Different food & beverages are used comprehensively around the world and their consumption is increasing exponentially. CBD-infused food & beverages are increasing rapidly owing to their health benefits.

The food and beverages sector is likely to create a valuation of around US$ 14.5 Mn in 2022, and is expected to reach US$ 45.5 Mn by the end of 2032.

Further, CBD-infused beverages are increasing with a majority of share from the F&B sector. CBD serves potential business opportunities for stakeholders in the food and beverage sector, from CBD cakes to CBD-enriched gummies, and sauces.

All this needs CBD extraction equipment to work more efficiently. CO2 CBD extraction systems are installed in food and beverage companies to minimize the adverse impact of extraction. It is common for companies to have permanently installed equipment.

Why is CBD Derived from Hemp Likely to Witness Accelerated Growth?

CBD derived from hemp extraction equipment is gaining attention in the global CBD extraction equipment market. This is due to increase in the legalization of CBD usage that is derived from hemp.

Marijuana-based CBD is not only subjected to strict government regulations but is also comparatively becoming less demanding in the CBD market.

However, rising demand for hemp CBD extraction equipment will provide opportunities for automating CBD extraction services to the end use verticals. This service helps minimize the need for skilled manpower to carry out the extraction task. This will result in lower costs for the business with the same provision for extraction.

CBD derived from hemp material is likely to hold a market valuation of US$ 26.6 Mn in 2022, and is expected to expand at a CAGR of around 13.5% over the forecast period.

Competitive Landscape

Leading CBD extraction equipment manufacturers are Accudyne Systems, Careddi technology Co., Ltd., Cedarstone Industry, Cool Clean Technologies LLC, Eden Labs, Extrakt Lab, Gibraltar Industries, Green Mill, Henan Huatai Cereals And Oils Machinery Co., Ltd., Hielscher Ultrasonics GmbH, ISOLATE EXTRACTION SYSTEMS (IES), Maratek, Precision Extraction, SFE Process, Taiwan Supercritical, and Vitalis Extraction.

Owing to high demand for CBD products, market players have the opportunity to expand their product offerings to cater the dynamic demand from end-use sectors. Market participants are channelizing their resources and focusing on geographical expansion in highly lucrative markets.

• Gibraltar Industry (Prospiant), in Jan 2022, launched a new product - Delta Ethanol Extraction CUP-5 - for cannabis processors. The company has developed innovative and technologically-advanced closed-loop cold alcohol extraction technology.
• Green Mill Supercritical, in Oct. 2020, introduced “PARALLEL PRO” CBD extraction equipment. This product has a competitive design that increases capacity through an easy and cheap approach of upsizing extraction components.

Key Segments Covered in CBD Extraction Equipment Industry Research

• CBD Extraction Equipment Market by Extraction Type:

  • Solvent Extraction
  • CO2 Extraction
  • Hydrocarbons Extraction
  • Mechanical Separation
  • Cold Pressed Extraction
  • Rosin Pressed Extraction

• CBD Extraction Equipment Market by Extraction Material:

  • CBD Extraction Equipment for Marijuana
  • CBD Extraction Equipment for Hemp

• CBD Extraction Equipment Market by Capacity:

  • Up to 2.5 Kg/h CBD Extraction Equipment
  • 2.5 - 5 Kg/h CBD Extraction Equipment
  • 5 - 8 Kg/h CBD Extraction Equipment
  • 8 - 10 Kg/h CBD Extraction Equipment
  • Above 10 Kg/h CBD Extraction Equipment

• CBD Extraction Equipment Market by End-use Sector:

  • Cultivation & Processing
  • Industrial
    • Pharmaceuticals
    • Food & Beverages
    • Personal Care & Cosmetics

• CBD Extraction Equipment Market by Region:

  • North America CBD Extraction Equipment Market
  • Europe CBD Extraction Equipment Market
  • Asia Pacific CBD Extraction Equipment Market
  • Latin America CBD Extraction Equipment Market
  • MEA CBD Extraction Equipment Market