Marijuana Business Factbook 2019

210 Marijuana Business Factbook 2019 Chapter 4 | Financial & Operational Data: Cannabis Product Manufacturers © 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. CHART 4.04: Which Products Do Cannabis Product Manufacturers Typically Make? Note: Multiple-choice question; respondent total may be greater than 100%. Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Which Products Do Cannabis Product Manufacturers Typically Make? Cannabis Producers/Processors Dabbable Concentrates and/or Vape Pens Edibles and/or Beverages Topicals Cannabis Processors Dabbable Concentrates and/or Vape Pens Edibles and/or Beverages Topicals 89% 39% 43% 50% 50% 63% Part Of Product Line Produce Exclusively 39% 7% 4% 17% 13% 29% Percent Of Businesses Nearly all producers/processors make dabbable concentrates and/or vape pens. This could be driven by a couple of factors. Low-price concentrates and vape pens are popular among consumers, and producers/processors have an advantage given that they don’t have to purchase raw cannabis from another supplier at a markup. Additionally, some wholesale cultivators added processing capabilities after launch as a way to protect themselves from falling wholesale prices. These producers may have chosen to enter the market for vape pens and concentrates because such products are easier and less costly to produce than topicals and edibles. Concentrates can be produced without any major additional expenditures, such as setting up a commercial kitchen. Furthermore, savvy branding and packaging is often required for a topical or edible to succeed in the market, while concentrates are viewed as more of a commodity. There is more specialization among processors only. With the exception of dabbable concentrates and vape pens, more of these companies choose to focus solely on products within a single category. Processors without production capabilities tend to be smaller entities that earn less than half the median annual revenue of producers/processors, which pushes these businesses toward specialization over diversification.