Researching The Cannabis Industry In Oregon

Cannabis industry growth in the U.S. nowadays is rapid, without any doubt. Marijuana is legal for adult recreational use in 11 states and Washington D.C., while 34 states have established some type of medical cannabis program. The history of cannabis use in America is long and difficult, but despite the many challenges, the push for legalization continues.

One of the first states to get that ball rolling in terms of cannabis legalization was the state of Oregon. All the way back in 1973, Oregon became the first state to pass legislation to decriminalize cannabis possession and in 1998 became only the second U.S. state to establish a medical cannabis program. Long story short, cannabis has a long history with the people of Oregon.

Despite that long history, however, the cannabis industry is constantly changing and developing. Since cannabis was legalized in Oregon, it’s generated hundreds of millions of dollars a year for the state. That’s a massive industry for most small countries, let alone a state with a population of only about 4 million. So let's take a closer look at the details of the ever-changing cannabis industry in the Beaver State.

Cannabis Interest Among The Oregon Population

From the moment Oregon’s state government allowed the possession of cannabis, the interest in cannabis has only risen. However, it was approximately on one level, because consumption was still forbidden. In the infographics, you can see that starting from 2004 people were searching cannabis-related phrases in Google. The interest in cannabis started rising, allowing recreational marijuana use in the state. That legislation opened up the market to sell, buy and use cannabis legally, which reflects in the spike of searches in 2016.

Since then, Oregonians might get used to convenient access, so the number of requests has decreased. That was until the COVID-19 pandemic, at least.,The global pandemic and the ensuing lockdown public interest in cannabis It’s averaged out since then, but it’s fair to say the pandemic has been great for legal cannabis.

Interestingly, our data shows that people search for cannabis more when the weather is warmer. According to data from 2016-2020, people searched for cannabis most during the summer or autumn months, while the least number of people did so in winter.

Search trends also differ depending on the Oregon metropolitan areas. The research above shows that citizens of south-western regions of the state show the most interest in cannabis-related phrases via Google searches. In comparison, metro areas located in the north-east of Oregon didn’t seem to show much of an interest in cannabis-related searches. That difference might be due to demographics. After all, the north-west of Oregon neighbors Idaho, a state where cannabis is illegal across the board. At the same time, their neighbors from the south-west, California and Nevada, are both as friendly to marijuana as Oregon itself.

Statistics On The Representatives Of The Cannabis Industry

Once the legislation to legalize cannabis passed and legal sales started in 2015, state authorities demanded regulations. As of 2017, licenses were handed out and dispensaries were permitted to finally sell cannabis legally. According to our data, we can see that the vast majority of cannabis companies are large-scale growers and producers, who supply products to dispensaries to testing and research laboratory licenses are the least popular in the state.

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Read Also: Guide On Cannabis Growers: Who They Are And How To Become A Cultivator

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Some of the companies even have more than one license. Take a look at the list of some Oregon businesses. It’s also worth noting that just 13 firms in Oregon hold three different licenses at once.

The legal cannabis industry in Oregon is huge, and it isn't only great for the medical field or recreation. It is also a sizable employment creator. Simply put, the cannabis industry creates an astounding amount of jobs. Imagine that only in big companies that require licenses, there are 61,384 active permits for employed citizens who are involved in the cannabis industry, and this number is only going to grow.

The Value Of The Cannabis Industry To Oregon

It is not a surprise that business people pay much attention to the cannabis industry. When it comes to making profits, the cannabis industry is a sure-fire winner. This market is quite profitable, and the infographics above can prove it.

In this diagram, you can see Oregon state's most valuable crops. Among the crops represented in the statistics, it’s clear that cannabis is far and away Oregon’s most valuable crop. The second and third places have alfalfa hay and wheat, respectively.

While cannabis itself might be a plant, more commonly pictured as little buds in plastic containers waiting to be put into the grinder and smoked, that’s not the only way people can use cannabis. It’s available in the form of edibles, oils and tinctures, extracts and even creams you can apply to the skin.

The chart above represents best-selling products by type in Oregon. As you can see, we can conclude that industrial hemp is not popular in the state, while flowers and concentrates are much more commonly sold. Those same sales figures have held firmly for years now even as sales have only gone up.

Interestingly enough, as customers' interest in cannabis has grown, the price has actually gone down. The median cannabis retail price per gram in Oregon in 2016 was $10.50. In2020, that price had fallen all the way to only $5.66. That’s not even the lowest price Oregon cannabis buyers have seen. That price dipped as low as $4.29 per gram in 2019 dropped twice in the last four years.

Another interesting stat to take a look at is metropolitan sales in Oregon per capita. Looking at the table above, we can note that the general tendency is increasing for most regions. Some domains such as Union almost don't have any sales at all. The Baker region was great for cannabis at the end of 2018, before later seeing that demand decrease.

For the end of 2020, we can see that the Malheur area was on top in terms of sales.

Oregon Brands About Cannabis Industry

Our interviews with industry representatives will help you learn more about the trends and atmosphere within the cannabis industry.

Benjamin Nadolny, Founder and CEO of Fox Hollow Flora, is confident that federal legalization will initially bring difficulties to existing cannabis businesses due to new regulations and laws, but then he will begin to grow cannabis when there are no obstacles in the form of state borders. "Federal legalization will undoubtedly bring new requirements to the cannabis industry and make life complicated for all cannabis companies. The upside is that quality cannabis can be grown more efficiently by not being bound to a specific state. Commodity cannabis will move to states with lots of sun, cheap energy, and limited regulations. Oregon and California companies will assign regional designations to their products, such as Applegate Valley or Sonoma County. Banks will grant billions of dollars in debt. Established cannabis companies may expand, become acquired, or spiral into debt. The good news is that for a short period of time after oversaturated states like Oregon begin exporting cannabis, it will open the market and allow new companies to fill the local supply. "

Sally and Dewan, the founders of Luminous Botanicals, highlight the importance of sustainability in the cannabis business. "Luminous Botanicals was the first product manufacturer to ever be Sun + Earth Certified. That means our products are made in a chemical-free environment, from regenerative organic cannabis and certified organic oils, by people who make a living wage with benefits, inside a company that is working for cannabis legalization and spreading the gospel of regenerative agriculture. And we aren’t trying to take over the world or pump up the company value for a quick sale. We are focused on building a right-sized regional brand that enriches the quality of life for people in our community. With our commitment to the standard, we use only third-party certified organic ingredients in all our products. Another way that we maintain transparency is by posting the laboratory Certificates of Analysis for every batch of every product to our website."

Final Thoughts

The beautiful and green state of Oregon has been an essential piece in the rise of the legal cannabis industry, a perfect place for anyone who has anything to do with marijuana. The citizens who are lucky to live in such a progressive state have reaped the benefits of that very same cannabis industry. The market grows, creates jobs and brings benefits to the state locals. According to research, cannabis is the most valuable crop in Oregon. It’s hard to overstate how big of a deal the legal cannabis industry is in Oregon and, judging by the number we went over in this article, it’s only going to grow further from here.

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Read Also: Cannabis in Oregon

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References

https://www.oregon.gov/olcc/marijuana

https://www.oregon.gov/ODA