Study #: 3749 | Published: 06/2019 | Pages: 181 | Individual User License: US$ 3,900

Sales of Cannabis Growing Supplies Expand at Fast Pace, in Line with US Hemp and Marijuana Outputs

Incremental loosening of the laws and regulations governing cannabis use and production – which was stymied when the substance was listed as a Schedule 1 drug by the US federal government in 1971 – is creating opportunities in a potentially quite profitable industry.

As a result, US demand for cannabis growing supplies – including consumables and equipment used to cultivate hemp and marijuana (by licensed/known growers) – is expected to increase 12% annually to $5.6 billion in 2023. Increases in cannabis production of 19% per year through 2023 will drive such rapid sales gains, specifically:

  • explosive growth in the acreage devoted to hemp production following federal legalization of hemp by the 2018 Farm Bill, as farmers – many of whom are struggling with low crop prices and Chinese tariffs on US-produced agricultural goods – seek higher profit crop options, especially in the near term
  • a rising number of medical marijuana patients and expanding opportunities for medical marijuana businesses
  • legalization of adult-use marijuana in more states, the most recent of which is Illinois, where the legislature approved a bill for legalizing recreational marijuana in May 2019 that is to take effect in 2020

Key Findings in the Cannabis Growing Market Study:

Rapidly Rising Demand for CBD is Spurring Sales of Hemp Growing Supplies

The emerging market for health products, cosmetics, pet supplements, and other goods infused with cannabidiol (CBD) is driving farmers across the US to apply for hemp cultivation licenses. As US hemp production expands nationwide, sales of related seeds, irrigation systems, security equipment, and other products are projected to rise at a fast pace. However, since hemp is typically grown outdoors, the need for some high-value equipment (e.g., lighting and hydroponic grow systems) is limited.

Growing Supplies Sales to See Boost from Commercial Marijuana Production

As regulated commercial marijuana industries develop in an increasing number of states, demand will expand for supplies such as hydroponic equipment, high-intensity grow lights, HVAC equipment, and specialty soil amendments. Commercial marijuana enterprises are most likely to operate indoors and require complex and expensive supplies. However, because most equipment types have long lifespans, demand for consumables – an ongoing seasonal need – will grow faster.

California and Colorado Lead in Consumables and Equipment Demand for Cannabis Production

California will remain the leading market for cannabis growing supplies, supported by its massive output of marijuana compared to other states. The state is also expanding production of industrial hemp from very low pre-2019 levels. Colorado – which ranks among the leading US states for hemp output and second for marijuana – will retain its position as the second largest market for cannabis growing supplies. Other notable markets are in the major hemp-producing states, including Kentucky, Montana, Nevada, and Oregon.

Study Coverage

This Freedonia industry study analyzes the $3.6 billion cannabis growing supplies market. It presents historical demand data for 2018, and forecasts for 2019, 2023, and 2028 by product type (seeds & clones; growing media; fertilizers & nutrients; other consumables; water tanks, irrigation, & hydroponic equipment; fans & HVAC equipment; security equipment; lighting systems & bulbs; pots & planters; harvesting & trimming equipment; cloning equipment; other equipment). Demand is also segmented by market (commercial, private-use residential); growing location (indoors & greenhouse, outdoors); growing system type (soil-based, hydroponic); and US state (California, Colorado, Oregon, Washington, Kentucky, Montana, Nevada). In addition, the study provides estimates for US hemp and marijuana production in pounds and value, and offers a detailed overview of the regulatory environment.


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Table of Contents

EXECUTIVE SUMMARY

CANNABIS MARKET OVERVIEW & PROSPECTS

Cannabis Definition & Scope

Cannabis Applications

Medical Marijuana

Adult-Use/Recreational

CBD & Other Hemp-Derived Products

Growth Opportunities

Industrial Hemp Program Expansions

Improving Medical Marijuana & CBD Oil Access

Personal Wellness, Pet Anthropomorphism, & CBD

Voluntary Vertical Integration or Specialization

Aligning Medical & Adult-Use Marijuana Regulation

Improved Access to Adult-Use Marijuana & Cannabis Tourism

Market Threats

Federal Restraints

Interstate Commerce

Banking Options & Access to Financing

Other Federal Restraints

State Restrictions & Legal Loopholes

Possession & Purchase Limits

Resistant Local Governments

Confusion over Legalization & Decriminalization

Labeling Challenges & Product Safety Concerns

REGULATORY ENVIRONMENT

National Legal Overview

Industrial Hemp

2018 Farm Bill Provisions

Industrial Hemp Activity by State

State-Level Cannabidiol (CBD) Product Laws

Medical Marijuana

Medical Marijuana: Access

Medical Marijuana: Possession & Use

Medical Marijuana: Production

Medical Marijuana: Sale

Adult-Use Marijuana

Adult-Use Marijuana: Access

Adult-Use Marijuana: Possession & Use

Adult-Use Marijuana: Production

Adult-Use Marijuana: Sale

CANNABIS PRODUCTION

Key Findings

Cannabis Supply Chain

Marijuana vs. Hemp

Production Outlook (Pounds)

Production by Cannabis Type

Production by US State

Cannabis Production Value by Application

Production Costs

Production Costs by Expense

Electricity

Labor

Lab Testing

Security Services

Growing Space, Water, & Other Expenses

CANNABIS CONSUMABLES & EQUIPMENT PRODUCTS

Key Findings

Demand by Product

Consumables

Demand by Product

Seeds & Clones

Growing Media

Fertilizers & Nutrient Solutions

Other Consumables

Equipment

Demand by Product

Water Tanks, Irrigation, & Hydroponic Equipment

Fans & HVAC Equipment

Security Equipment

Lighting Systems & Bulbs

Pots & Planters

Harvesting & Trimming Equipment

Cloning Equipment

Other Equipment

CANNABIS CONSUMABLES & EQUIPMENT MARKETS

Key Findings

Demand by Market (Commercial & Private-Use Residential)

Commercial

Private-Use Residential

Growing Locations

Demand by Growing Location

Indoor & Greenhouse

Outdoor

Growing Systems (Soil-Based & Hydroponic)

MARKET TRENDS BY US STATE

Key Findings

Cannabis Growing Market by US State

State Profile: California

California: Cannabis Growing Market Size & Regulatory Environment

California: Demand by Market

California: Demand by Product (Consumables & Equipment)

State Profile: Colorado

Colorado: Cannabis Growing Market Size & Regulatory Environment

Colorado: Demand by Market

Colorado: Demand by Product (Consumables & Equipment)

State Profile: Oregon

Oregon: Cannabis Growing Market Size & Regulatory Environment

Oregon: Demand by Market

Oregon: Demand by Product (Consumables & Equipment)

State Profile: Washington

Washington: Cannabis Growing Market Size & Regulatory Environment

Washington: Demand by Market

Washington: Demand by Product (Consumables & Equipment)

Other States

Other States: Cannabis Growing Market Size & Regulatory Environment

Other States: Demand by Market

Other States: Demand by Product (Consumables & Equipment)

APPENDIX

Scope

Definitions

Abbreviations

Freedonia Methodology

Study-Specific Methodology

Sources

Associations & Agencies

Related Studies & Reports

Macroeconomic Assumptions

Economic Environment

Demographic Trends

Consumer Spending

Manufacturers' Shipments


List of Tables

REGULATORY ENVIRONMENT

Table 3-1 | State Cannabis Legalization by Type, 2019

Table 3-2 | US States with Hemp Research Programs & Cultivation Prior to Passage of 2018 Farm Bill

Table 3-3 | US States with Limited Access to Low-THC, High-CBD Cannabis Products Prior to 2018 Farm Bill

Table 3-4 | Medical Marijuana Possession & Use Legalization by State, 2019

Table 3-5 | Medical Marijuana Production Legalization by State, 2019

Table 3-6 | Adult-Use Marijuana Possession & Use Legalization by State, 2019

Table 3-7 | Adult-Use Marijuana Production Legalization by State, 2019

Table 3-8 | Adult-Use Marijuana Sales Legalization by State, 2019

CANNABIS PRODUCTION

Table 4-1 | US Cannabis Production by Cannabis Type & Market, 2018 - 2028 (million pounds)

Table 4-2 | US Cannabis Production by US State, 2018 - 2028 (million pounds)

Table 4-3 | US Cannabis Production by Application, 2018 - 2028 (billion dollars)

Table 4-4 | Cannabis Production Costs by Expense, 2018 - 2028 (million dollars)

CANNABIS CONSUMABLES & EQUIPMENT PRODUCTS

Table 5-1 | Cannabis Growing Demand for Consumables & Equipment, 2018 - 2028 (million dollars)

Table 5-2 | Consumables for Cannabis Growing: Demand by Product, 2018 - 2028 (million dollars)

Table 5-3 | Seeds & Clones for Cannabis Growing: Demand by Market, 2018 - 2028 (million dollars)

Table 5-4 | Growing Media for Cannabis Growing: Demand by Market, 2018 - 2028 (million dollars)

Table 5-5 | Fertilizers & Nutrient Solutions for Cannabis Growing: Demand by Market, 2018 - 2028 (million dollars)

Table 5-6 | Other Consumables for Cannabis Growing: Demand by Market, 2018 - 2028 (million dollars)

Table 5-7 | Equipment for Cannabis Growing: Demand by Product, 2018 - 2028 (million dollars)

Table 5-8 | Water Tanks, Irrigation, & Hydroponic Equipment for Cannabis Growing: Demand by Market, 2018 - 2028 (million dollars)

Table 5-9 | Fans & HVAC Equipment for Cannabis Growing: Demand by Market, 2018 - 2028 (million dollars)

Table 5-10 | Security Equipment for Cannabis Growing: Demand by Market, 2018 - 2028 (million dollars)

Table 5-11 | Lighting Systems & Bulbs for Cannabis Growing: Demand by Product & Market, 2018 - 2028 (million dollars)

Table 5-12 | Pots & Planters for Cannabis Growing: Demand by Market, 2018 - 2028 (million dollars)

Table 5-13 | Harvesting & Trimming Equipment for Cannabis Growing: Demand by Market, 2018 - 2028 (million dollars)

Table 5-14 | Cloning Equipment for Cannabis Growing: Demand by Market, 2018 - 2028 (million dollars)

Table 5-15 | Other Equipment for Cannabis Growing: Demand by Market, 2018 - 2028 (million dollars)

CANNABIS CONSUMABLES & EQUIPMENT MARKETS

Table 6-1 | Commercial & Private-Use Residential Growers: Consumables & Equipment Demand by Market, 2018 - 2028 (million dollars)

Table 6-2 | Commercial Market: Consumables & Equipment Demand by Product, 2018 - 2028 (million dollars)

Table 6-3 | Private-Use Residential Market: Consumables & Equipment Demand by Product, 2018 - 2028 (million dollars)

Table 6-4 | Cannabis Growing: Consumables & Equipment Demand by Growing Location, 2018 - 2028 (million dollars)

Table 6-5 | Indoor Cannabis Growing: Consumables & Equipment Demand by Product, 2018 - 2028 (million dollars)

Table 6-6 | Outdoor Cannabis Growing: Consumables & Equipment Demand by Product, 2018 - 2028 (million dollars)

Table 6-7 | Cannabis Growing: Consumables & Equipment Demand by System Type & Market, 2018 - 2028 (million dollars)

MARKET TRENDS BY US STATE

Table 7-1 | Consumables & Equipment for Cannabis Growing: Demand by US State, 2018 - 2028 (million dollars)

Table 7-2 | California: Cannabis Growing Consumables & Equipment Demand by Market & Growing Location, 2018 - 2028 (million dollars)

Table 7-3 | California: Cannabis Growing Supplies Demand by Product, 2018 - 2028 (million dollars)

Table 7-4 | Colorado: Cannabis Growing Consumables & Equipment Demand by Market & Growing Location, 2018 - 2028 (million dollars)

Table 7-5 | Colorado: Cannabis Growing Supplies Demand by Product, 2018 - 2028 (million dollars)

Table 7-6 | Oregon: Cannabis Growing Consumables & Equipment Demand by Market & Growing Location, 2018 - 2028 (million dollars)

Table 7-7 | Oregon: Cannabis Growing Supplies Demand by Product, 2018 - 2028 (million dollars)

Table 7-8 | Washington: Cannabis Growing Consumables & Equipment Demand by Market & Growing Location, 2018 - 2028 (million dollars)

Table 7-9 | Washington: Cannabis Growing Supplies Demand by Product, 2018 - 2028 (million dollars)

Table 7-10 | Other States: Cannabis Growing Consumables & Equipment Demand by Market & Growing Location, 2018 - 2028 (million dollars)

Table 7-11 | Other States: Cannabis Growing Demand by Product, 2018 - 2028 (million dollars)

APPENDIX

Table 8-1 | Relevant Industry Codes

Table 8-2 | Abbreviations & Acronyms Used in Study

Table 8-3 | Macroeconomic Indicators, 2008 - 2028 (billion 2012 dollars)

Table 8-4 | Population & Households, 2008 - 2028 (million persons)

Table 8-5 | Personal Consumption Expenditures, 2008 - 2028 (billion dollars)

Table 8-6 | Manufacturers' Shipments, 2008 - 2028 (billion dollars)


List of Figures

EXECUTIVE SUMMARY

Figure 1-1 | Key Trends in the US Market for Cannabis Growing Supplies

CANNABIS MARKET OVERVIEW & PROSPECTS

Figure 2-1 | Survey Results: Consumer Attitudes Toward Cannabis for Medical Applications (% respondents)

Figure 2-2 | Marijuana Legalization Timeline by State

Figure 2-3 | Applications for Hemp

REGULATORY ENVIRONMENT

Figure 3-1 | Summary Timeline of Medical Marijuana Access Legalization by State

Figure 3-2 | Summary Timeline of Adult-Use Marijuana Access Legalization by State

CANNABIS PRODUCTION

Figure 4-1 | US Cannabis Production

Figure 4-2 | Cannabis Supply Chain

Figure 4-3 | US Cannabis Production: Marijuana & Hemp Production, 2018 - 2028 (million pounds)

Figure 4-4 | US Cannabis Production by Market, 2018 - 2028 (million pounds)

Figure 4-5 | US Cannabis Production by State, 2018 - 2028 (million pounds)

Figure 4-6 | US Cannabis Production Share by Application, 2019 (billion dollars)

Figure 4-7 | Cannabis Production Cost Share by Expense, 2019 (billion dollars)

CANNABIS CONSUMABLES & EQUIPMENT PRODUCTS

Figure 5-1 | Key Trends in Cannabis Growing Consumables & Equipment Products

Figure 5-2 | Consumables & Equipment Demand for Cannabis Growing, 2016 - 2028 (million dollars)

Figure 5-3 | Consumables for Cannabis Growing: Demand by Product, 2016 - 2028 (million dollars)

Figure 5-4 | Seeds & Clones: Example Products

Figure 5-5 | Growing Media: Example Products

Figure 5-6 | Fertilizers & Nutrient Solutions: Example Products

Figure 5-7 | Other Consumables: Example Products

Figure 5-8 | Equipment for Cannabis Production: Demand by Product, 2016 - 2028 (million dollars)

Figure 5-9 | Water Tanks, Irrigation, & Hydroponic Equipment: Example Products

Figure 5-10 | Fans & HVAC Equipment: Example Products

Figure 5-11 | Security Equipment: Example Products

Figure 5-12 | Lighting Systems & Bulbs: Example Products

Figure 5-13 | Pots & Planters: Example Products

Figure 5-14 | Harvesting & Trimming Equipment: Example Products

Figure 5-15 | Cloning Equipment: Example Products

Figure 5-16 | Other Equipment: Example Products

CANNABIS CONSUMABLES & EQUIPMENT MARKETS

Figure 6-1 | Key Trends in Cannabis Growing Consumables & Equipment Markets

Figure 6-2 | Commercial & Private-Use Residential Markets: Product Mix Comparison, 2019 (million dollars)

Figure 6-3 | Commercial & Private-Use Residential Markets: Cannabis Growing Supplies Demand Share by Growing Location, 2019 (million dollars)

Figure 6-4 | Commercial & Private-Use Residential Markets: Cannabis Growing Supplies Demand Share by System Type, 2019 (million dollars)

MARKET TRENDS BY US STATE

Figure 7-1 | Key Trends in US State Markets for Cannabis Growing Supplies

Figure 7-2 | Cannabis Growing Supplies Demand by US State, 2018 - 2023 (million dollars)

Figure 7-3 | California: Cannabis Growing Market & Cannabis Production, 2016 - 2028 (million dollars)

Figure 7-4 | California: Cannabis Growing Supplies Demand Share by Product, 2019 (million dollars)

Figure 7-5 | Colorado: Cannabis Growing Market & Cannabis Production, 2016 - 2028 (million dollars)

Figure 7-6 | Colorado: Cannabis Growing Supplies Demand Share by Product, 2019 (million dollars)

Figure 7-7 | Oregon: Cannabis Growing Market & Cannabis Production, 2016 - 2028 (million dollars)

Figure 7-8 | Oregon: Cannabis Growing Supplies Demand Share by Product, 2019 (million dollars)

Figure 7-9 | Washington: Cannabis Growing Market & Cannabis Production, 2016 - 2028 (million dollars)

Figure 7-10 | Washington: Cannabis Growing Supplies Demand Share by Product, 2019 (million dollars)

Figure 7-11 | Other States: Cannabis Growing Market & Cannabis Production, 2016 - 2028 (million dollars)

Figure 7-12 | Other States: Cannabis Growing Supplies Demand Share by Product, 2019 (billion dollars)

APPENDIX

Figure 8-1 | Annual Growth in Real GDP, 2000 - 2018, Compared to 1980 - 2005 Average (percent)

Figure 8-2 | Annual Population Growth, 2003 - 2018 (percent)


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