Cannabis flower production continues to bloom
A new report published by Arcview and BDS Analytics shows a bright and flourishing future for cannabis flowers. The report, “Flower: The Foundation of the Cannabis Industry,” indicates that flower production is increasing and will continue to do so driven by an expanding demand for alternative products such as concentrates, edibles, salves and tinctures.
The research groups show that flower production is expected to increase from the 2.1 million pounds produced last year to around 6.9 million pounds by 2022. According to Tom Adams, Editor in Chief of Arcview, “This is a key opportunity for those cultivators who can adapt. Meanwhile, falling raw material prices will support profitability in every other sector of the business.”
The analysis was compiled using data collected by GreenEdge, a point-of-sale tracking system developed by BDS. The report took into consideration a number of factors, including supply and demand and state and federal legislation – both current and future. It also added data points, such as the fact that 85% of the global market for cannabis is found in the U.S.
One of the biggest drivers of flower’s success will come from branding. As marijuana loses its stigma of only being used by “stoners” looking to get “high,” there is new marketability that overcomes those stereotypes, allowing for fresh and widespread approaches to demonstrating the power of cannabis.
Additionally, marketing isn’t just limited to the end product. The report indicates, “With wholesale prices dropping and consumers’ preferences evolving, cultivators are being pushed to optimize growing methods and broaden their operations beyond cultivation to fully capitalize on the booming industry.”