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Cannabis Oil

Learn more about the main reasons for the demand for cannabis oil and understand the key challenges in cannabis oil manufacturing/production

The Growing Demand for Cannabis Oil

When California took the lead and legalized medical marijuana, it was THC (the psychoactive component of the cannabis plant) and its capacity to stimulate appetite that took center stage. CBD and other cannabinoids weren’t really the focus. However, today, the global CBD oil market is witnessing exponential growth, with experts predicting a growth of 46.9% over the next seven years. 


The two primary oils derived from the cannabis sativa plant, cannabidiol (CBD) and tetrahydrocannabinol (THC), together account for a $3-5 billion end market. This flourishing segment is touted to reach $13-23 billion over the next 3 years at a staggering CAGR in the range of 25-50%. *





Top 4 Reasons for the Upsurge in Demand for Cannabis Oil  


If the aforementioned numbers are anything to go by, there is massive opportunity for businesses that deal in cannabis oil. Here’s a quick look at some of the primary reasons for this increase in demand: 


  1. Therapeutic research: With research indicating benefits in therapies for cancer, epilepsy, chronic pain, mental disorders, inflammation, insomnia, diabetes and autoimmune diseases, CBD oil and its related products have witnessed a surge in the demand. 
  2. Legalization of cannabis: The widespread legalization of cannabis and cannabidiols across the United States, Canada and other parts of the world is also a key determinant.
  3. Increase in hemp farms: The noticeable increase in industrial hemp harvest, thanks to the recent declassification of hemp as a controlled substance, and the legalization of hemp in almost every state in the United States is a driving factor for growth. Going forward, experts predict that hemp farms will even start to launch their own CBD related consumer products.
  4. Cannabis-infused edibles: Consumers continue to experiment with cannabis oil in different formats. The edibles market is another growing segment within the cannabis market with recent studies suggesting that a growing majority of consumers are interested in trying cannabis-infused edibles. 


The biggest challenge for manufacturers is to meet the ever-increasing consumer demand for a high-quality, compound-rich oil with a clear golden character that is free of chlorophyll.





Key Challenges in Cannabis Oil Manufacturing/Production 


From an operations perspective, it is important to ensure that the manufacturing processes are effective for small batches and larger product demand, while keeping product losses to a minimum. Other challenges:


  • Maximizing yield
  • Focusing on quality and consistency
  • Overcoming technological limitations
  • Putting streamlined processes and systems in place
  • Ensuring efficient production and improving product quality
  • Finding economic processing and production solutions to expedite extraction


To ensure marketability and quality, the compliant composition (% of THC and CBD) of ingredients in these oils is essential. For this, processes like identification, separation, extraction and filtration need to be carefully selected and managed within GMP guidelines. 





Key Trends for the Future 


With rapid growth in this new segment, the cannabis oil market will continue to evolve in both regulatory requirements and innovation in product and processing. Key future trends include:   


  • Zero THC, high CBD 


Crops that test over 0.5 % THC (marginally over the permissible THC limit) are bad news for hemp producers. They may even face criminal prosecution on charges of negligent violation of the federal rules. In the near future, we may see THC-free hemp plants, varieties that have negligible THC but contain high percentages of CBD and other cannabidiols, or technologies to remove THC from the oil.  


  • Custom processes 


There is a need to look beyond a one-size-fits-all approach to products and the key manufacturing steps (including oil separation, extraction, isolation and purification). It is important that manufacturers understand the need to devise different processes, emphasizing cost reduction and optimizing yield at scale. 


  • Product innovation 


As science and technology evolve, the ways in which cannabis oil can be perceived, used and applied, are also changing. In the next few years, we will see the emergence of newer delivery methods, novel flavors and efficient product development processes. 


  • Product marketing 


The consumers’ buying journey is at the forefront of marketing tactics across industries, with businesses doing their best to engage with these consumers through product innovations, content legitimacy/certification, consumer education, dosing, and more. In this market, too, we will see businesses engaging with customers using inventive branding, communication and marketing.


Cannabis oil producers are looking to engage with experts who can offer solutions to their manufacturing challenges. Pall Corporation specializes in offering filtration and microorganism monitoring solutions.


Learn more about these market trends and how to solve complex filtration challenges when producing cannabis oils. Get in touch with a Pall Filtration expert today! To learn more, fill out the form and one of our experts will contact you.

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