Factors to Consider for Success in the Evolving Cannabis Industry
As the cannabis industry makes its way across the United States, New Frontier Data has identified seven factors that existing and potential producers should weigh in order to achieve success.
The report projects that California will remain on top of producing the most pounds of cannabis at 26.4 million, followed by Florida at 18.4 million, New York at 15.1 million, Illinois at 11.9 million. Apart from this, the West and East Coast states have varying temperature differences that must be taken into account; indoor grow facilities being favored on the former and greenhouses and outdoor farms being favored on the latter due to their higher humidity levels.
Moreover, the report tackles energy costs due to high indoor lighting requirements and water conservation measures. Climate change is also a looming factor, as longer, hotter summers add premiums on increased cooling requirements, and droughts lead to water shortages and rising costs of water.
Automation may also be of interest to new producers but requires experienced personnel to manage them. Demand for specific products is also changing, with flower still in the lead, but other products like vapes, edibles and topicals gaining more ground.
For producers looking to join the cannabis market, understanding these key factors is essential in order to capitalize on the massive potential of the legal cannabis industry. The most successful operators will be those who plan for where the market is going, not where it currently is.