Cannabis processing can be a challenging game. For cannabis processing facilities willing to invest, plan ahead, and stay current with the latest technologies and opportunities, however, there is room for exciting growth. Changes in techniques and modern equipment can quickly leave even forward-thinking companies behind, which makes staying up-to-date a vital part of maintaining a competitive edge.
Cannabis cultivation faces a number of unique obstacles that other burgeoning industries simply don’t face. In spite of high taxes, targeted regulation, lack of access to investment, and plenty of legal challenges, cannabis remains one of the most exciting business opportunities of the millennium.
Cannabis Production Trends
Legalization is sweeping the US, although the hope of federal decriminalization has already faded in the first year of the Biden Administration. Still, 18 states have legalized recreational marijuana, while 37 have allowed some kind of medical marijuana use. Pioneering states like Colorado, California, and Michigan have quickly expanded marijuana production to include both indoor and outdoor grow facilities, many of which are located in ideal geographic locations that make for cost-efficient distribution in metropolitan cities.
Cannabis as a product, however, is shifting away from flowers and focusing on concentrates. These processed concentrates are the key elements of the most popular butters, gummies, resins, and other edibles and tinctures.
Cannabis is the fast-growing industry in the US, but within the industry lies a segment of growth that is even more impressive. In 2014, processed oils, or concentrates, made up just 10% of the legal cannabis industry. By 2019, it nearly doubled to 27% thanks to advances in extraction technology. By 2022, some experts predict that concentrate sales will match or even exceed dried flowers sales in the US.
Vaping May Lead the Way
A 2019 study found that California residents preferred vaping cannabis concentrates versus smoking dried flowers. Vaping offers a more convenient and more discreet way option for cannabis enthusiasts to enjoy weed. In fact, concentrates are already outselling dried flowers. According to reports, concentrate sales exceeded dried flower sales in 2018.
Concentrates have hit 40% of retail sales in Washington and 31% in Oregon.
As growers plan for the future, building relationships and adjust crops to suit emerging markets will make all the difference. Cultivation and processing are two energy-intensive elements of the cannabis market and will rely heavily on technological implementation to reduce energy use and increase yields as well.
Keen Technical Solutions is invested in supporting the growing cannabis industry from the grow room to the processor to the retail shelf. Contact Keen Technical Solutions to learn how we can support your cannabis company’s growth.