It’s estimated that worldwide flower production will go from 2.1 million pounds in 2017 to 6.9 million pounds in 2022.
According to the new report, “Flower: The Foundation of the Cannabis Industry,” set forth by ArcView and BDS Analytics, cannabis flower production isn’t going down due to new products. In fact, demand has never been higher, thanks to edibles, concentrates, tinctures and salves. It’s estimated that worldwide flower production will go from 2.1 million pounds in 2017 to 6.9 million pounds in 2022. Now that’s a lot of weed.
While the price per pound of marijuana is steadily dropping, its demand has been increasing and will continue to do so. As an example, the report points to Oregon, where the price per pound is around $844 as of July of this year.
Editor in Chief of ArcView, Tom Adams, said, “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.” It sounds like a hard sell to growers, who are the ones responsible for the abundance of flowers to use in infusions and oils, but it is the fast spreading reality, not likely to be checked.
Branded cultivars are a big part of the report that focuses on profitability and salability, using data collected by BDS’ GreenEdge point-of-sale tracking system. It makes predictions into 2022 on supply and demand for flowers, state and federal legislation’s effects on the industry and has juicy tidbits like the U.S. demands 85 percent of the global share of cannabis, with 61 percent of that demand coming from the adult use market.
But the beginning and really the heart of the report is about branding, branding, branding — the hottest word in the cannabis industry these days. It’s a crucial component for sure, but something that wasn’t worried about too much in the community in decades past, unless you were a super breeder or were seeking out regional recognition for your green thumb as a grower.
It seems what was once about sick patients and prison reform has become more about profit and production, but then again, what was expected to happen when the rest of the U.S. woke up to the whiff of a safe, effective plant that nearly everybody wants?
For instance, the report points out, “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.”
It’s the weathervane spinning and then pointing due North and it’s a report that savvy cannabis investors will eat up as it becomes more and more tricky to stay relevant and excel in this burgeoning industry.