Greenhouse cannabis market trending for 2023
Added on 09 February 2023
Gretchen Schimelpfenig: MJBizCon was sort of a different affair this year. It was great to connect with manufacturers to see what they’re coming up with and learn what they’ve been hearing about energy codes in 2023. It’s been a rough year for many in the industry, but one of the things I definitely noticed about the show was that the cannabis market continues to become more mature and professional. People are coming with more of a business mindset. There are also many who are new to having a business in this industry and are definitely trying to learn as much as they can. Design solutions are still kind of hard to navigate for growers, and many of the exhibiting companies are looking for ways to be the place where the grower can get everything.
Brian Sparks: With the challenging year this industry has had, are you seeing more reluctance for new companies to enter the market?
Gretchen Schimelpfenig: The costs of getting into the market and staying in operation are becoming prohibitive for some. As the adult use license market opens up, potential growers are having to invest a lot of money just in development. There are equity programs in cannabis licensing laws for pretty much every state, but for smaller growers, there’s still the financial hurdle just in terms of licensing fees. Once they do begin operating, some aren’t able to hit good margins because of equipment or materials costs. There’s also quickly a steep learning curve for costs of running a legitimate business, like compliance with requirements for tracking of the product. Inventory tracking is important for cannabis because it prevents people from selling across state lines. So even when people get into the market, if the number of farms in that market is high or if the regulations for that market change, the margins businesses need to achieve might not make it viable.
Photo: Gretchen Schimelpfenig
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