Five Years Inside the State of the Industry

Special Report - State of the Cannabis Cultivation Industry

With consistent year-over-year data, Cannabis Business Times industry research enables us all to better understand the cannabis market, and its trends, and provides a useful tool for future planning.

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June 8, 2020

For the past five years, Nexus Greenhouse Systems has partnered with Cannabis Business Times to bring you an inside look at the cannabis cultivation industry. With consistent year-over-year data, this research enables us all to better understand the industry, and its trends, and provides a useful tool for future planning.

As you’ll see in this year’s report, participants are reporting fewer losses and a leveling off of profits. As state markets stabilize across the country, we know it will be more important than ever to build and maintain operationally efficient cultivation facilities. As the market matures, the price per pound will continue to fall, and your production costs should too if you want to remain competitive, whether you are an entrepreneurial start-up or multistate producer. As a supplier of both greenhouse and indoor cultivation facilities, we know greenhouse production continues to be the No. 1 tool for reducing your initial and operational costs for a 52-week production facility, as illustrated in this year’s report showing a decrease in indoor and increase in greenhouse cultivation sites. Nearly a third of greenhouse cultivators also report average production costs of less than $100 per pound of dried flower, compared to 11% of indoor cultivators.

Whether for greenhouses or indoor grows, hemp, marijuana, or processing and extraction, we have the expertise to design your cultivation facility for your exact business needs. We handle projects from inception to completion with a multitude of structures to suit every climate and general contracting services to ensure you have a knowledgeable team capable of handling installation and systems integration. Our first-to-market approach will get you up and running so that you can optimize your return on investment and maintain operational efficiency.

How do we do this? By being a single-source solution provider. We’re pleased to announce the development of the Growing and Processing Solutions groups from our parent company, Gibraltar Industries. Nexus Greenhouse Systems, Rough Brothers, Inc. (RBI), Tetra Indoor Grow, and Thermo Energy Solutions comprise the Growing Solutions Group. Apeks Supercritical and Delta Separations Extraction are the Processing Solutions Group. Together, we are a one-stop-shop for cultivation and processing.

Greenhouse production continues to be the No. 1 tool for reducing your initial and operational costs for a 52-week production facility, as illustrated in this year’s report showing a decrease in indoor and increase in greenhouse cultivation sites.

We appreciate your participation in this year’s research. We are pleased to support Cannabis Business Times in its effort to collect essential cultivation industry data through this annual “State of the Cannabis Cultivation Industry Report.” If asked to participate in next year’s study, we encourage you to do so; we can gather even more data with your help.

2020 is off to a very different start than any of us could have imagined. The long-term effect that COVID-19 will have on our industry is still to be determined. Nevertheless, we know that we will need to continue to promote the economic and medicinal benefits or our products, stay flexible in our methods of conducting business, and become more efficient in purchasing and day-to-day operations. We know that the cannabis industry is resilient and resourceful. Stay Safe! Stay Healthy!

— Greg Ellis, National Sales Director, Growing Solutions Group

Read the rest of the 2020 State of the Cannabis Cultivation Industry Report

Report Cover Page

Letter: Five Years Inside the State of the Industry

Introduction:  Tracking Data Reveals Industry Shifts, Sustained Growth

2020 Cannabis Research: Revenue and Profits Plateaued, But Solid

2020 Cannabis Research: Where Cultivators Grow

2020 Cannabis Research: Industry Optimism, Expansion Continues

2020 Cannabis Research: Challenges Are One Constant in a Dynamic Industry