The legalization and regulation of marijuana use paved the way for the weed manufacturing industry to become one of the fastest-growing businesses in the last few years.
Scruffy hippies getting high in a disorganized underground economy — this was how the weed manufacturing industry was painted in the (not too distant) past. But today, the new marijuana manufacturing business is growing, and it’s nothing like you’ve ever imagined.
What Is Weed Manufacturing?
Weed manufacturing refers to the process of yielding, reproducing, deriving or preparing, manufactured weed products. This process of weed manufacturing can be done either indirectly or directly, using extraction techniques, chemical synthesis, or a combination of both. The industry continues to grow rapidly as more consumers are beginning to understand the benefits of taking weed products in health and fitness, medicine, and even beauty.
Subsequently, as the demand for various marijuana products increases, more investors are showing interest in starting a cannabis-related business. The entire weed industry is flourishing, and as this sector continues to develop at a fast pace, there is lots of money to be made. If you’re thinking of going into a large-scale operation, there are many marijuana processing equipment available that can help you kick-start your business.
But be prepared. Starting a weed business is not easy, as there are laws and regulations that you have to consider first depending on the state or country you’ll be operating from. So, you might want to plan this carefully. It’s also best to consult with lawyers and check with regulating bodies first to make sure your business will be compliant with the laws in place.
For recreational use, marijuana is currently legal in 15 states. But for medical use, it’s legal in 35 states, and these numbers are expected to grow in the coming years. Traditionally, hash, flower, and handmade edibles were the only cannabis goods available to consumers in the underground market. In today’s legal market, weed products are available in more forms like oils, concentrates, cannabis-infused drinks and foods, and products containing tetrahydrocannabinol (THC) like dry powder inhalers, and transdermal patches. It’s no wonder why there’s a sudden increase in the number of weed manufacturing companies regardless of strict state regulations.
But aside from the facts cited above, there are more interesting things about the weed manufacturing industry: Its Sales Growth Is Rapidly Increasing Since the changes in government laws, with more states legalizing its use, the market for legal marijuana was projected to skyrocket. And true enough, according to Forbes, legal marijuana sales in the U.S. alone went up by 46% in 2020. This increase led to an all-time high of USD$17.5 billion, which means Americans are consuming more weed than ever.
Furthermore, several new cannabis firms are pursuing research and development, testing, and production. In Canada, many regions are anticipating the privatization of cannabis retail outlets. Many provinces that formerly picked a single supplier are now asking numerous vendors to submit their bids to meet the increase in demand.
In a recent market analysis report, the value of the worldwide legal marijuana market was appraised at USD$ 9.1 billion in 2020 and is anticipated to have a 26.7% increase in compound annual growth rate (CAGR) from 2021 to 2028. It can be said that the growing demand for legal marijuana is driven by the increasing number of states and countries legalizing the use of cannabis. It Produces Innovative Products Too With its legalization, marijuana users are eating their cannabis more than ever, rather than smoking it. Between January and August 2018, the market share of edibles in Oregon and Colorado increased to 24%, with sales for other edible products growing even faster. Cannabis-infused chocolates, for example, grew by 135% in Colorado during the same period.