Cannabis Growing Market

Report Overview

This study analyzes US demand for cannabis growing supplies by product, market, growing location, growing system type, and US state. Growing supplies demand is reported in value terms (US dollars) at the manufacturers’ level. Cannabis production volume (in dry pounds) and value (US dollars) at the grower level are also reported.

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Cannabis Production

Production volumes and values in this report cover only the dry weight of usable cannabis plant and exclude the value of downstream processing.

Reported cannabis production numbers in this study refer to:

• all marijuana and hemp (i.e., cannabis containing 0.3% or less THC) produced by known and/or licensed (annual and temporary) commercial cultivators, whether or not that marijuana ends up on the black market (e.g., sold out of state)
• marijuana grown legally by individuals at home

While a significant portion of marijuana produced by these growers is eventually sold through illicit channels, these volumes are included to avoid significant underreporting in the marijuana growing supplies market. This is particularly important for California – by far the country’s leading marijuana producer – where only about 20% of local production is sold legally within the state.

Excluded from this report are:

• marijuana and hemp grown by unknown and unrecorded operations
• marijuana grown illegally by individuals at home
• cannabis illegally imported into the US and sold on the black market

Cannabis Growing Supplies

Cannabis growing supplies demand is segmented by consumables and equipment. Consumables used for growing cannabis include:

• seeds and clones (i.e., cuttings)
• growing media (including soilless types)
• fertilizers and nutrient solutions
• other consumables (e.g., pesticides, fungicides, geotextiles, cleaning chemicals, gloves and aprons, carbon filters)

Equipment covered in this study:

• water tanks, irrigation equipment, and hydroponic systems (e.g., plastic water storage tanks and reservoirs; flood and drain tables; hoses, irrigation pipes, and drip irrigation systems; hydroponic system components such as grow modules, reservoirs, pumps, plastic tubing, and other associated hardware)
• fans and HVAC equipment (e.g., industrial and commercial fans; consumer personal fans; cooling and drying systems; dehumidifiers; air cleaners and purifiers; pumps, duct silencers, and other HVAC system parts and accessories)
• security equipment (e.g., cameras, motion detectors, video surveillance equipment, access control systems)
• lighting systems and replacement bulbs (e.g., LED, CFL, HID lamps and bulbs)
• pots and planters (e.g., standard plastic, ceramic, and metal pots with saucers for catching water runoff; growing trays, boxes, and baskets; fabric pots and grow bags; air pots; hemp buckets)
• harvesting and trimming equipment (e.g., agricultural harvesting equipment such as tractors and combines; specialty cannabis harvesting equipment such as buckers and dry trimmers; hand tools such as bud trimmers and trimming shears)
• cloning equipment (e.g., root cubes and trays; seedling humidity domes; clone buckets; cloning machines; tissue culture cloning equipment)
• other equipment (e.g., garden bedders and tillers; greenhouses; grow tents; monitors and controllers; pH and nutrient testers; plastic sheeting and liners; growing tables, benches, and trellises; protective glasses)

Markets and growing locations for cannabis growing supplies include:

• commercial indoor marijuana (including operations that are fully grown in a greenhouse)
• commercial outdoor marijuana (including plants primarily grown outside, even if some greenhouse space is used onsite)
• commercial hemp (both indoor and outdoor)
• private-use residential marijuana (i.e., indoor and outdoor personal home-grow operations)

Growing system types include soil-based and hydroponic systems.

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.