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.
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 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 Processor Business Plan
If you are going to start a Cannabis Processing 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.
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CBD Oil Extraction Lab Business Plan Templates can be found at hempcbdbusinessplans.com.