Marijuana Business Factbook 2019

xiv Marijuana Business Factbook 2019 Executive Summary © 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. Key Takeaways 1. ADJUSTMENTS COMING: WHOLESALE CULTIVATORS AND MARKET DEMAND Current competition in the industry favors growers who can supply the extraction market with low-cost cannabis that reliably meets minimum quality standards. With flower sales on the decline, the market will likely not be able to sustain such a large portion of growers attempting to compete on quality. While the extract market currently favors low-cost flower, demand for high-quality concentrates will absorb more market share in the future. As interest continues to grow, quality will become more of a factor in demand than simply price. Low-cost and value products will always have a role in the industry. However, as cannabis becomes more and more of a commodity, the value of a company will grow more dependent on brand and product reputation while market segmentation shifts toward value-added production. CHART: Wholesale Cultivators: What Is The Key Differentiator Of The Cannabis You Grow Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Wholesale Cultivators: What Is The Key Differentiator Of The Cannabis You Grow? High Quality Grown Organically/Without Pesticides Low Cost Grown Sustainably Terpene Content/Profile Value For Money Other 46% 23% 12% 8% 4% 4% 4%