What can we expect in the new year we’ve all been waiting for? Four more states legalized cannabis in 2020, and there’s a lot more change coming on a fast track this year. So, in today’s article, we’ll dive into the biggest trends to expect regarding cultivation across the United States. Let’s get to it!
It’s likely that more land will be reserved for hemp flower production this year. As a result, CBD biomass will see a continuous decline in value. If you take into account the fact that isolate exports from Columbia are becoming cheaper, it means that cultivators should strongly reconsider growing CBD this year.
Speaking of hemp, you can expect that more of it will be grown for its fiber and grain. Businesses that grow hemp for its CBD biomass are constantly facing the challenge of turning a profit. Since hemp can be used for a variety of things, farmers are incentivized to pivot to serve other market segments that demand its fiber and grain.
Let’s shift the conversation to another cannabinoid: THC. As we experienced the world lockdown in mid-March 2020, demand for cannabis products with high concentrations of THC skyrocketed. One of the biggest considerations for recreational cannabis consumers is the THC levels in a product. The products that are most likely to fly off the shelf this new year are going to be at least 30% THC or more.
We’ve written about terpenes before, and we know you love them because they are some of our most popular blog articles. Although high concentrations of THC are a big incentive to purchase recreational cannabis, we expect demand will be through the roof for products that offer a rich variety of unique terpenes. Look out for new flavors and aromas because whatever customers demand is what drives the industry’s supply.
Nearly 50% of cannabis sales at any given cannabis dispensary are flower products. Since all other products require buds that don’t need to be expensively cultivated on a large scale, more plants will likely be grown in greenhouses all year round. That said, we expect to see an expansion of greenhouses in states that can legally grow cannabis.
Just because greenhouses and indoor growing may expand doesn’t mean that the industry is going to throw sustainability out the window. In fact, there are more incentives to be sustainable in business now than ever before. Because growers will be pressured to cap their water and electrical consumption, more new cannabis operations will likely design more sustainable systems.
Based on the industry’s history, demand will likely exceed supply in the states that have most recently legalized cannabis. Cultivation businesses in new adult-use states can learn from historically green states to avoid overcomplicating their launch and expansion. If they do, then they can benefit from high wholesale and retail prices.
If the cannabis industry has learned anything, it’s that reputation matters. If a cannabis company’s reputation is shot, then it takes a hit (and we’re not talking about a joint). Cultivating the best flower for lighting up and reserving the rest for extracting oils is a sustainable way to get the most out of your harvest. This is how you manifest quality over quantity.
Let’s take a minute to address the elephant in the room. The black market still exists. Commercial growers are still competing with this and have to keep prices lower because of it. If caregivers supply most of the market in your state, it’s wise to consider a different state in which to cultivate.
The thing is, your local state government doesn’t want you to cross state lines to cultivate and, in turn, generate tax revenue for other states. COVID-19 had a negative impact on the economy across the country. Cannabis regulation and taxation are two ways to offset that impact, including deficits that state governments are facing in this new year. Considering all the above, you can expect that more states will vote to legalize cannabis in 2021.
What other cultivation trends do you expect to see in 2021? We want to know! Drop a comment or a line to [email protected] and let me know your thoughts on this topic. ECO Cannabis and I are wishing you a safe and happy new year!