Marijuana Business Factbook 2019

209 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. Financial & Operational Data: Cannabis Product Manufacturers | Chapter 4 MJBIZDAILY.COM CHART 4.03: Cannabis Product Manufacturers Overview: Typical Revenue, Expenses & Startup Costs By Business Type Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Cannabis Product Manufacturers Overview: Typical Revenue, Expenses & Startup Costs By Business Type Cannabis Producers/Processors Annual Revenue Annual Operating Costs Startup Costs (Businesses Launched In Last Three Years) Cannabis Processors Annual Revenue Annual Operating Costs Startup Costs (Businesses Launched In Last Three Years) $1,600,000 $1,050,000 $900,000 $700,000 $360,000 $500,000 Median For both cannabis processors and producers/processors, annual revenue exceeds annual operating costs, bolstered in part by declining wholesale marijuana prices and shifting consumer demand away from flower to products such as concentrates and infused edibles. These businesses are well positioned to capitalize on the surge of legalization and consumer demand, but it is a highly competitive environment. For example, there are more than 1,000 processors in Washington state, more than 800 in California and in excess of 500 operating in Colorado. While median annual revenue for producers/processors is more than twice that of processors alone, startup and operating costs were also higher by roughly the same margin, reflecting the higher costs associated with starting and running both a manufacturing facility and a cultivation operation.