Cannabis Study Reveals Production Costs Decreasing for Growers
Whether growing in a greenhouse, in a warehouse/indoors or outside, cannabis cultivators are running more efficient operations, as seen by the decrease in production costs.
Cannabis Business Times 2020 State of the Cannabis Cultivation Industry Report

Cannabis Study Reveals Production Costs Decreasing for Growers

Industry research shows cannabis growers are improving growing efficiencies each year, whether they cultivate indoors, in greenhouses or outdoors.

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June 29, 2020

Whether growing in a greenhouse, in a warehouse/indoors or outside, cultivators are running more efficient operations, as evidenced by the continuous decline in production costs seen during the five years that Cannabis Business Times has published its exclusive research report, the State of the Cannabis Cultivation Industry Report, made possible each year with the generous support of Nexus Greenhouse Systems.

For example, when growers were asked to provide their average production cost per pound of dried flower in 2019, the number that fell in the middle of all responses (the median) when growing in a warehouse, greenhouse or outdoors was $400, $261 and $130, respectively. This year, those figures have declined to $396, $233 and $100, respectively.

When compared to 2018 data, as the chart above illustrates, the decreases are even more dramatic. Cultivators are continuing to utilize automation technology when cultivating, which could be increasing efficiency and lowering production costs. As noted in this year’s report, competition and declining prices have been the top challenge for cultivators for multiple years, so decreasing the cost to produce a pound of flower may be a top priority.


Read more insights from CBT’s 2020 “State of the Cannabis Cultivation Industry Report” by following the links below:

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: Industry Optimism, Expansion Continues

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

ABOUT THE RESEARCH: The data in this report was collected by independent research firm Readex Research via an online survey, which was sent to all emailable, active, qualified subscribers to Cannabis Business Times magazine and/or e-newsletter located in the U.S. or Canada, from April 15 to April 29, 2020. The survey was closed for tabulation with 298 responses. To best represent the audience of interest, the base for the results in this report, unless otherwise noted, are the 202 respondents who indicated they currently own or work for an organization that grows cannabis. Another 53 respondents indicated they do not currently own or work for an operation that grows cannabis, but plan to in the next 18 months. The margin of error for percentages based on the 202 respondents who currently own or work for an operation that grows cannabis is approximately +/- 6.8 percentage points at the 95% confidence level.