Information About Marijuana Companies: Who They Are and What They Do

The marijuana industry is booming and cannabis companies are here to take advantage of it.

Whether you are a supporter of the healing properties of weed or believe that it's a hipster trend, there is no denying that the cannabis industry is quite promising and expanding at an extraordinarily fast rate. In 2019 the North American marijuana market had a value of $6.03 billion and according to forecast, it will reach as high as $65.16 billion by 2027.

Today, marijuana is legal for recreational use in 15 states and for medical use in 35 states causing the growth of stock prices of the manufacturers and encouraging more companies to join this market.

There is money to be made in the market and more businesses from food and beverages to beauty are entering the marijuana market.

Who Are Manufacturers of Cannabis Products

There are several things to learn about cannabis companies. So, what kind of companies are involved in the game?

• Cannabis growers. These are marijuana producers that actually grow marijuana plants, and produce dried cannabis as well as other cannabis-related products such as oils, drops, edibles, etc.
• Suppliers. These are the companies that provide manufacturers with equipment and products that are needed for growing marijuana. For example, hydroponics, lights, media, seeds, security facilities, climate control systems, etc.
• Biotech. These companies are cannabis companies that work to optimize the biological result of cannabis plants.
• Cannabis distributors that link the manufacturers and dispensaries.
• Retailers, or businesses that bring the finished product to the clients.

History of Cannabis Manufacturers

In most American states and a large number of countries around the world, the marijuana business is growing. From craft medical cannabis growers and large-scale marijuana companies to weed cultivation, this is another wave of business that is throughout the world. These processes have gained such force that no one cannot realize that it didn't use to be so. When did the cannabis business start to develop and what will be its way in the future?

In the late 1970ies, several states across the USA allowed medical marijuana due to FDA-approved research. The legal use of medical cannabis didn’t really gain power until the 90ies when the Californian government passed a number of laws that defend medical cannabis users. Then came San Francisco where people with AIDs were allowed to officially obtain medical marijuana. Eventually, legal access to cannabis was granted to all Californians with specific medical conditions such as AIDs, glaucoma, chronic pain, etc.

Years ahead other states began the legalization of medical marijuana. Even the states that did not approve THC-high products have allowed people to buy low THC and high CBD products. The new regulations for consuming cannabis gave rise to a great number of growing facilities and businesses that came to meet the needs.

In the USA, farmers are not allowed to grow weed that contains more than 0.3% THC. It has considerably increased the marijuana clothing industry, edibles, lotions, and other products that contained hemp.

How Did Legalization Affect Cannabis Manufacturers?

The continued providing changes around the legalization in the US and national legalization in Canada have affected the stock prices of the cannabis companies. For example, cannabis companies have their stocks rise after investments from tobacco manufacturers and other giants. Marijuana pharmaceutical companies feel good as well they got FDA approval of Epidiolex, a medication that contained CBD.

Cannabis companies employees

As the demand for marijuana has moved up, cannabis manufacturers could offer work to many employees. In 2020, cannabis companies hired 200,000+ full-time employees in different segments of recreational and medical cannabis businesses – technicians, budtenders, legal compliance, and more.

Types Of Cannabis Businesses

 Flower (Buds)

According to the Marijuana Market Analysis 2019, dried marijuana buds are the best selling products and most cannabis companies operate in this niche. Such companies usually are medical or/and recreational cannabis producers that supply cannabis flowers and extract products to consumers. When it comes to cannabis giants, they typically have a broad product line of both THC and hemp-based CBD products.

Oils

CBD oil companies specialize in producing CBD-infused products (mainly oils, drops, capsules). The best companies guarantee that their authentic CBD products contain zero artificial components, are grown in the USA, and are tested by third-party labs.

Topicals, creams, and lotions

Topical marijuana manufacturers offer products such as lotions, creams, balms, and skin oils. That is considered a niche cannabis market yet it is growing rapidly.

Edibles

Companies that specialize in edibles include chocolate bars, gummies, cooking butter, beverages, and other products that produce effective and long-lasting effects. Some companies produce only CBD-infused products while others can include a significant amount of THC.

How To Start A Cannabis Business

Do you want to start your own cannabis-related business? With a lot of hard work, connections, capital, and knowledge, you can do it.

• Find partners or advisors

Starting a marijuana business is not an easy endeavor, so finding partners or advisors who can answer these questions themselves would be a good first step.

• Decide what type of business to run

If you want to start your own medical marijuana dispensary, then in some ways, it is similar to any retail business. You need to have a good understanding of the product and the consumer to be able to make a store that people will want to frequent. But you also need to have a good understanding of business principles and how to make a retail store thrive.

• Do your research

With cannabis dispensaries, you have the added job (and cost) of finding a permitted location, getting approved for business by the state, county and town/city you are in, and making sure that you are following all the (often shifting) regulations. Otherwise, you will be liable for the legal repercussions of illegally selling a schedule one substance. These parameters vary by state but almost always include steep application and license fees, a lot of paperwork and regulatory hoops, and a heavy tax on everything sold.

• Connect with the cannabis community

Then you also have to get into the cannabis community to find good products and allies who will work with you in a very small and often close-knit community.

• Getting the right place and property

Many business/commercial properties won’t allow for cannabis cultivation and/or dispensing. Finding a hospitable landlord is an important aspect of your business. Remember, there are also often city-wide restrictions and zoning permits to look at before you can start up a dispensary.

• Put together a decent business plan

Raise twice as much capital as you think you need to, and have some good, knowledgeable legal representatives by your side.

• Think about safety

Think about how you’re going to store your product safely, so it’s out of the public eye and not in-view from the street. You don’t want to get arrested on “cannabis in public view” charges, and you definitely don’t want to be the target of criminals wanting to steal your product. You also want to be able to store your product properly so as to prevent mold, mildew, etc.

• We also asked Plainjane and Homestead Hemp Farm how they started their journey into the cannabis business.

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

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How To Get A Job In The Marijuana Industry

There are a couple of important factors that come into play if you want a job in the cannabis industry:

• Location

If you live in the United States, it really helps to be looking for work in California, Colorado, Nevada, or Washington. Those states have more openings than any others. If those states are not options, Florida, Michigan, Massachusetts, Oregon, and Illinois are all seeing a surge in cannabis employment as well.

• Position

According to Vangst, the cannabis recruiting platform, here are the most commonly hired positions: Outside Sales Representative, Trimmer, Dispensary Manager, Budtender, Director of Extraction, Compliance Manager, Director of Cultivation. If you want to break into the industry, these are the jobs that are most likely to be available.

• Education

Having a college degree is one of those ‘preferred’ requirements. What I mean by that is many entry-level job openings will list high school diplomas as the ‘requirement’ but most of the people who hold those jobs have college degrees. Having a college degree tells the employer that you can handle the responsibility of a regulated industry.

• Experience

Unless you are looking for an upper-level position, experience in the cannabis industry is not likely to be required. This sector is too new to require most applicants to have worked with cannabis prior to applying.

Conclusion

Taking into account various difficulties in the cannabis market, wannabe manufacturers will definitely have to think outside of the box and see the bigger picture. The delight of the money-earning in a rising and already large market has to be weighed against the cons — like the budget to invest, legal issues, and high competition. When you want to proceed and enter a cannabis market, these steps will be helpful.

Sources

https://en.wikipedia.org/wiki/Legality-of-cannabis-by-U.S.-jurisdiction

https://finance.yahoo.com/news/north-america-cannabis-market-report-170000272.html