The cannabis industry’s path to success may be riddled with obstacles, but with persistence and determination, we can navigate through any challenge. It’s like sailing against the wind—the struggle may be tough, but it makes us stronger. While macroeconomic difficulties and industry-specific obstacles hold us back at present, we must not let them overshadow the incredible potential of the cannabis industry to create jobs, build stronger communities, and promote health and well-being.
Prospiant is proud to support Cannabis Business Times’ in its mission to gather critical cultivation data and publish the 2023 “State of the Cannabis Cultivation Industry Report.” By sharing essential insights and industry trends, this report from CBT will serve as a valuable resource for cultivators seeking to succeed in this rapidly evolving market.
At Prospiant, we believe cultivators can survive and thrive in this promising industry by prioritizing quality and unit cost, and by being quick to seize on opportunities in emerging markets. The numbers from the 2023 report confirm the urgency of this approach:
- 61% of respondents said their top business challenge is declining prices/price compression
- 53% of respondents stated their operation was not profitable in the last fiscal year
- 34% of cultivators report their profits decreased compared to the last fiscal year.
Decreasing prices reflect competitive and maturing market segments. A maturing market demands a strategic shift to operational excellence, driving a competitive total unit cost. This total unit cost is driven by optimizing all the input costs while increasing yield. By focusing on operating costs, improving their methods continuously, and optimizing their resources, cultivators gain a competitive edge and position themselves for long-term success.
In developing cannabis markets, speed to market is essential for survival. Cultivators who are among the first to bring their products to market capitalize on the initial surge in demand, profit from higher wholesale prices, and establish brand recognition ahead of their competitors. Unfortunately, the process of designing, building and integrating a facility often leads to inefficiencies and bottlenecks that can delay market entry by a year or more, especially when working with multiple vendors. Integration challenges, cost overruns, quality control problems and delays can quickly become time-consuming and costly concerns. Cultivators need market-tested, plug-and-play solutions that meet regulatory requirements and allow for customization. They must find a partner who can provide comprehensive solutions and support for a swifter and smoother path to market.
With new markets opening and volatile market conditions across the industry, the need for resilience, adaptability and the latest data is more critical than ever. At Prospiant, we appreciate your participation in this year’s research and remain committed to supporting the industry through the challenges ahead. Together, we can build a brighter future for all.
Mark Dunson (Group President), Peter Sashin (VP, Marketing and Sales) and Kermit Blaney (Director of Sales, Cannabis)
