Marijuana Business Factbook 2019

271 © 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. Cannabis Testing Labs and Ancillary Firms | Chapter 6 MJBIZDAILY.COM CHART 6.17: Ancillary Technology & Products Companies That Serve Multiple Industries: Average Number Of Marijuana Clients In 2018 Vs. Expected In 2019 By Product Type Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Ancillary Technology & Products Companies That Serve Multiple Industries: Average Number Of Marijuana Clients In 2018 Versus Expected In 2019 By Product Type 78 57 70 53 48 37 53 35 46 34 33 32 38 12 20 5 Cannabis - Specific Software Testing Lab Equipment & Supplies Consumption Devices & Paraphernalia Cultivation Structures, Equipment & Intallations Other Ancillary Products Processing & Extraction Equipment & Supplies Other Cultivation Supplies Packaging Average Number Of Marijuana Industry Clients In 2018 Expected Number Of Marijuana Industry Clients In 2019 Ancillary technology and products companies served an average of 33 marijuana clients in 2018, ranging from a low of five clients for testing lab equipment and supplies firms to a high of 57 clients for businesses providing cultivation supplies other than structures and equipment (such as fertilizers and nutrients). All companies in this sector expect to see an increase in the number of marijuana clients or customers served in 2019, bumping the average up 45% to 48. The most significant gains were expected among firms in the testing lab supplies and equipment category, which expect an average fourfold increase in the number of clients. Testing labs serve a critical function in the marijuana supply chain and are required by law in most states with legal cannabis. Testing lab equipment and supplies firms earned an average of only 5% of their annual revenue from cannabis, indicating that these firms have room for growth in 2019. Substantial increases in marijuana clients/customers is expected by firms in the cultivation supplies, cannabis- specific software and packaging categories.