by Corinne Gangloff
July 18, 2019
Following the passage of the 2018 Farm Bill, the production of hemp (or industrial hemp) is legal nationwide, and hemp is removed from the Controlled Substances Act. Marijuana, on the other hand, remains illegal at the federal level.
Consequently, the majority of additional cannabis capacity in the near term will be dedicated to hemp production. The study Cannabis Growing Market discusses the regulatory environment, production of marijuana and hemp, demand for consumables and growing equipment, and trends by state.
Analyst Carolyn Zulandt writes, “Demand for equipment used in cannabis growing applications is expected to reach $2.7 billion in 2019 and expand 10% annually to $3.9 billion by 2023.”
Growth will be driven by:
Water tanks, irrigation equipment, and hydroponic systems – relatively high-cost items and a major expense for indoor marijuana operations – will account for the largest portion of sales in 2019. Fans and HVAC equipment – important for indoor operations and for outdoor growers of marijuana and hemp that also maintain on-site greenhouses – will represent the second largest equipment segment. Security equipment, lighting systems, and replacement bulbs are also major expenses for cultivators.
More information regarding the Cannabis Growing Market study is here: https://www.freedoniagroup.com/industry-study/cannabis-growing-market-3749.htm
Additional studies covering outdoor living and landscaping trends are available from Freedonia’s Consumer Goods research group.
Provide the following details to subscribe.