Cannabis Extraction Business

 

One of the key hurdles that concentrates must face has to do with a negative public perception of the extraction process. However, as innovation and technology becomes a more integral part of the industry, producers of concentrates are developing cleaner, safer, and more efficient tools and processes to overcome this stereotype. Starting a cannabis business

Demand for cannabis concentrates and edibles is exploding, offering a window into trends that will likely play out in the larger cannabis industry over time. Nationally, patients and consumers who favor concentrates spend an average of $4,800 each year, more than double the average amount spent by cannabis users in general, according to What Cannabis Patients and Consumer Want, a marketing research report published by Marijuana Business Daily.

Nearly 70% of edibles manufacturers produce other products such as concentrates and topicals. Sixty percent of concentrates manufacturers also offer a diverse product mix. Despite the dominance of edibles and concentrates, less than a quarter of infused businesses produce these types of products solely.

Cannabis Concentrates Market Size and Growth

In 2014 when adult-use just launched in Colorado, over 70% of sales came from dried flower; in 2016, that was down to 55%. In contrast, concentrate sales were $20 million in 2014, or 13% of sales. By the end of 2016 they had jumped to $85 million and 25% of sales. Edibles (including candy, beverages, tinctures, and all food) more than tripled during the same period, from $17 million to $53 million, moving from 11% to 14% of sales. The contribution of sales from flower dropped to less than 50% in 2017 and to 44% in 2019 and increased from concentrates to 28% and 31% correspondingly in Colorado’s cannabis industry. Cannabis business pro forma

According to Arcview Research, after recreational cannabis legalization, the edibles market went from $17 million to $53 million in the first 2.5 years in Colorado and soared 121% within first year in Washington state.

Key insights from a report produced by a data analytical company Headset revealed that between 2020 and 2021, flower represented 50% of the total sales volume growth in the U.S. but will contribute less than 40% from 2021 to 2022.

Trend:

Companies are going to be constantly on the lookout for ways to improve their processes and maximize their returns on the cannabis plants they use. Solventless products are characterized by more stable retail prices and contributing to the growth of the cannabis concentrates sector overall, up 17.6% from 2020 to 2021 in five recreational states, according to Seattle-based cannabis sales analytics tracker Headset.