> For the complete documentation index, see [llms.txt](https://skyfiprojects.gitbook.io/skyfi-litepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://skyfiprojects.gitbook.io/skyfi-litepaper/project-information/partners/pureleaf/market-analysis.md).

# Market Analysis

The global cannabis extraction market is projected to experience substantial growth in the near future, fueled by the rising trend of legalizing cannabis for both medicinal and recreational use in many countries. The process of cannabis extraction involves obtaining active compounds like CBD and THC from the plant and converting them into a range of products including oils, tinctures, concentrates, and edibles.

As per a report by Grand View Research, the global market for cannabis extraction was valued at $6.3 billion in 2020 and is anticipated to grow at a CAGR of 16.6% from 2021 to 2028. The market is being driven by the increasing demand for cannabis-based products for health and wellness purposes, heightened awareness about the benefits of cannabis extracts, and the expansion of the legal cannabis industry globally.

North America is currently the largest market for cannabis extraction, with the US and Canada leading in consumption and production. Europe and Asia-Pacific are also emerging as significant markets, with countries like Germany, the UK, and Australia legalizing cannabis for medical purposes. With the legal framework taking shape, Thailand has great potential to become a major market player.

Despite the promising growth prospects, the cannabis extraction industry faces challenges such as stringent regulations, limited access to banking services, and insufficient standardization and quality control in the production process. Moreover, the COVID-19 pandemic has impacted the market, leading to supply chain disruptions and reduced spending on non-essential items by consumers.

Nonetheless, with the increasing legalization and demand for cannabis-based products, the cannabis extraction market is poised for significant growth in the coming years, making it a promising industry for investment and innovation.

<figure><img src="/files/SJy4T8SSDA7vawJNTJY7" alt=""><figcaption></figcaption></figure>


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