Cannabis Concentrate Market Size

In 2022, the global market for cannabis extracts (oil, shatter, wax and hash) was valued at approximately $7 billion, and the cannabis vaporizer market generated sales of over $5 billion. With global sales of cannabis edibles estimated at $4 billion, their combined value represented about 43% of total sales. The segment is estimated to grow at a CAGR of 16.8% between 2023 and 2027, reaching $30 billion by the end of 2027.

Cannabis Extraction Business: Market and Trends

Things to Know Before Starting a Cannabis Processor Business

In each country, the cannabis industry is strictly regulated, and anyone who wants to do activities with cannabis must obtain a license from the local regulatory authority. If you intend to extract cannabis and/or make cannabis products you will have to obtain one or more licenses for processing/extraction and manufacturing. Usually, a cannabis manufacturer (processor) licensee is allowed to process, dry, cure, package, and label usable cannabis, cannabis concentrates, and cannabis-infused products for sale at wholesale to other cannabis manufacturers and cannabis retailers. Manufacturing license types may be based on the activities performed and the chemicals used for extraction and post processing, if any:

  • Use volatile solvents for extraction or post-extraction processing (Butane, Heptane, Hexane, Propane)
  • Use non-volatile solvents for extraction or post-extraction processing (Ethanol, Carbon dioxide, Cooking oils, Butter)
  • Use mechanical methods for extraction (Rosin presses, Dry ice)
  • Make cannabis products through infusion
  • Package and label cannabis products

How to Start a Cannabis Extraction Business?

You will need a separate or micro-business license if you also want to grow cannabis.

Cannabis Processor Business Economics

The cultivation and infused products/concentrates sectors are particularly lucrative, with 29% of wholesale growers and 27% of infused companies saying that they are “very profitable.”

Startup costs are often much lower for infused companies vs. cultivators and retailers, making it easier to turn a profit. The initial cost of the equipment includes:

  • A CO2 extraction machine will cost approximately $150,000 to $450,000 depending on productivity.
  • A rotary evaporator and centrifuge will cost $30,000 to $100,000.

Additional costs include but aren’t limited to buildings, licensing, or the infrastructure and hourly wages for technicians that will be needed to operate that equipment. And, if you are not growing your own product of course you must factor in the cost of the raw materials (trim) that varies by state.

How Much Does it Cost to Start a Cannabis Extraction Business?

Calculate cannabis processor business costs and profits with our pre-populated cannabis extraction financial model. All you need to do to get started is enter the size of your manufacturing facility and the capacity of the equipment. The model will help you estimate how much it costs to start and operate your own cannabis manufacturing business, build all revenue and cost line-items monthly over a flexible seven year period, and then total the monthly results into quarters and years for an easy view into the various time periods.

Cannabis Extraction/ Concentrates Financial Model Sample

cannabis extraction concentrates financial model

Cannabis Processor Business Plan

We also offer Word document and PowerPoint pitch deck templates for your cannabis extraction business.

EXECUTIVE SUMMARY
  • Project Scope

  • Market Opportunities

  • Start-up Summary

  • Financial Projections

COMPANY DESCRIPTION
MARKET OVERVIEW
  • Global Market Overview

  • North American Cannabis Market

  • Cannabis Market in the US and Brief State Market Overview

  • Cannabis Sector Projections and Perspectives

  • SWOT Analyses

STRATEGY & IMPLEMENTATION
  • Marketing Plan

  • Cannabis Directories

  • Competition

  • Target Customers

  • Sales Forecast

OPERATIONAL PLAN
  • Location/Facilities

  • Extraction Method/Equipment

  • Physical Security Plan

  • Quality Assurance

  • Packaging and Labeling

  • Transportation

  • Tracking Solution

ORGANISATIONAL STRUCTURE & MANAGEMENT
FINANCIAL PROJECTIONS
  • Funding Analyses

  • Direct and Operational Costs

  • Profit & Loss Forecast

  • Cash Flow Statement

  • Balance Sheet

  • Main Ratios

APPENDICES
  • Income Statements, monthly

  • Cash Flow Statements, monthly

  • Floor Plans

Cannabis Extraction Business Plan

If you are going to start a Cannabis Extraction Business, using super-critical CO2, Ethanol, Butane, Solventless or other extraction methods with or without post-processing operations for refining downstream into concentrates, the Cannabis Extraction/Concentrates Business Plan Template will help you create a professional business plan as part of your cannabis processing license application and prepare for a meeting with potential investors.

The Cannabis Business Plan Template includes:

  • Excel financial model that you will be able to edit and customize according to your business needs

  • Word business plan document template, open and editable

  • PowerPoint pitch deck template, open and editable

  • Unlimited support (email)

All products can also be purchased separately or in any combination, e.g. Word document + PowerPoint presentation and so on.

Should you have any questions, please do not hesitate to contact us


Best Selling Cannabis Extraction Business Plan Templates

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