The European cannabis market is beginning to take shape. While much more is required for a market to form, a few glimmers of success show that the continent is coming online, albeit at a pace that requires patience. The signs from this handful of countries has led many to take notice of Europe and what may be on the horizon.
Here is why it is important to keep an eye out for the European cannabis market.
A Growing Number of Names in European Cannabis
To date, only a few countries in the EU have generated meaningful sales, according to the Spring 2019 report “Medical Cannabis in Europe: The Markets and Opportunities” by Marijuana Business Daily International Analyst Alfredo Pascual. It found that Germany and Italy represent strong demands while other nations made positive regulatory progress.
By May, MJ Biz Daily acknowledged other emerging nations in the continent, including Denmark. People in the Danish cannabis space made their case at the MJ Biz Daily's European Cannabis Symposium this past spring.
“Denmark is the right country to do business in medical cannabis, because we have a supportive country in rules and regulations,” said Rikke Jakobsen, CEO of Cannabis Denmark, a nongovernmental organization. “Even though the regulations are strict, they’re stable and consistent.”
The symposium also saw Germany making a stronger case for itself. Like Germany, it was recommended that we not ignore nations developing their own domestic cannabis supply. “That’s important because always in these tenders (in places like Germany), there’s a few strains, whereas in Canada you need 30 to 40 strains to service all the different patient groups,” said Hendrik Knopp, managing director of Aphria Deutschland. “That’s why we focus on in-country cultivation and imports. There will always be demand for imports – it’s twofold."
Cannabis Policy Reform
Both the report and symposium advocated for regulations. The MJ Biz report notes that international reform is possible. The report included:
- Removing cannabis from Schedule 4 of the 1961 Convention, the category reserved for the most dangerous substances.
- Removing THC in all forms from the 1971 Convention, placing it together with cannabis in Schedule 1 of the 1961 Convention, significantly simplifying cannabis classification.
- Clarifying that pure CBD and CBD preparations containing no more than 0.2% THC should not be included in any way in the international drug control conventions.
- Adding that pharmaceutical preparations containing THC, if they follow certain criteria, would be added to Schedule 3 of the 1961 Convention, recognizing the unlikelihood of abuse of these specific products.
That said, slow regulation and development of the market is expected. It is advised that people not become discouraged and instead focus on the small steps ahead as European market standardization is needed.
Why Solventless Cannabis Products Make Sense for Europe
Europe has higher product standards than the U.S. in just about every facet of its market. As such, it is expected that a continent with higher food and beverage regulations will do the same with cannabis. If that proves true, then solventless products and its producers could find themselves on the receiving end of sizable business going forward.
This prospect could come to fruition soon enough. Though, at this time, Europe continues to trudge along when it comes to cannabis progress. However, sales are starting to come about. And nations like Malta are vying for international cannabis business. It will take time, but the signs of a functioning European cannabis market can be found if you look for them.
Lastly, we will want to drive home the fact that in much of Europe, the quality of food and beverage is higher than elsewhere, and this will likely mean Europeans will also want premium cannabis concentrates, so solventless!
Hawaii’s cannabis market looks poised to exceed expectations. With the state allowing for a range of products to be sold, solventless production in Hawaii is already alluring and looks like it will gain in stature.
Currently, a lack of licensed medical operations exists across the islands. We believe that by getting involved with a solventless, clean, healthy, easy-to-use, minimal environmental impact process like rosin, your business could position itself as a leader in Hawaii’s burgeoning market.
Here are a few reasons to consider.
Will Hawaiian Cannabis Laws Allow Adult Use?
Let's start with Hawaii's cannabis laws. Like several other states in 2019, so far, Hawaii failed to legalize adult use cannabis in March. The latest iteration of a legalization bill did progress further than others. Yet, it was ultimately shot down by lawmakers who did not consider it in time for a deadline.
The March news did dash some hopes for Hawaii's law progression but did not end the expansion. Instead of an adult use law, state lawmakers approved of a decriminalization bill in early May. Under the bill, people in Hawaii found in possession of three grams or less would receive a $130 fine. The bill would also expunge criminal records for anyone prosecuted for three grams or less in Hawaii.
After passing both the House and Senate, the bill awaits the signature of Governor David Ige. So far, the Governor has shown some reluctance due to federal U.S. laws. "As I've talked to governors from other states who have gone to recreational [marijuana]. You know people assume that once it becomes recreational or decriminalized, that it's legal, and it's not legal by federal law. And I think that becomes the confusion, and that's always been my concern."
A Rising Medical Cannabis Market in Hawaii
While the debate continues over adult use laws, the state's medical program has produced positive results in recent months. That includes seeing its patient roll grow 17% in 2018. As of February 2019, more than 20,000 patients over 18 years old were enrolled in the program. Adult patients enrolled mostly for severe pain followed by persistent muscle spasms and PTSD. Minors were mostly treated for seizures, PTSD and epilepsy.
Hawaii's most-populated county is Honolulu and represents the most registered patients at just a few hundred patients short of 10,000. As of this winter, nearly 10,000 patients were registered in Honolulu County, home to the most-populated and highly frequented destination Oahu. Hawaii County was home to nearly 6,700 patients. Smaller yet sizable numbers were reported in Maui (5,297) and Kauai (>2,000) as well.
Reciprocity Offers Hawaiian Cannabis to Visitors
In-state patient numbers show that Hawaii's medical market continues to move in a positive direction. While significant, the state's decision to allow medical cannabis reciprocity could prove to be a boom for the market and its already successful tourism industry.
In March, lawmakers approved a measure which allows out-of-state patients to apply for a license to purchase medical cannabis in Hawaii. Patients can apply for up to two 60-day licenses each calendar year. Online approval is available as well to expedite the process. Applicants can also request a specific start date for the start of their license. A $49.50 application fee is required. Visit the state Department of Health for more information.
A Booming Tourist Market Getting Bigger
Hawaii's tourism market is immense. A January 2019 press release from the Hawaii Tourism Authority found that visitors to the Hawaiian Islands spent $17.82 billion in 2018, up 6.8% from the year before. The industry supports 217,000 jobs across the islands while 9.9 million people visit the island each year.
Now add medical cannabis reciprocity to the equation. On its own, Hawaii is one of the premier tourism destinations in the world. Now, patients in need of flower or Hawaiian cannabis concentrates can now do so. These two factors are sure to combine and generate even more revenue for the state’s tourism industry. The impact of rosin in Hawaii could be immense as patients get the medicine they require while the island’s revenue stream grows as well.
Most CBD Sales Remain Prohibited
Despite adult use bills not advancing once again, Hawaii offers a largely positive outlook for cannabis regulations and the state's market. That said, another form of cannabis remains stuck in a grey area.
CBD continues to puzzle many on the islands. So much so that the Hawaii Department of Health issued an early May statement reiterating that CBD has never been permitted for sales unless a prescription is provided. The DoH cited current U.S. Food and Drug Administration rules for its decision.
It’s Time to Go Solventless in Hawaii
We believe that the success of rosin in Hawaii is not too far away. With regulations continually shifting towards expanded access, Hawaiians and qualified visitors can participate in a medical market that show signs of growth. Patients are able to apply ahead of time and, when they arrive, purchase an array of treatment products.
Factors like reciprocity, a growing patient list and an assortment of products give Hawaii the chance to serve scores of patients in need. At the same time, businesses can grow and so can this needed market. Residual effects like additional support to the tourism industry only make this prospect that much more alluring for Hawaii.
While we can’t guarantee adult use is sure to come, the signs indicate that Hawaii is a booming market. Contact us today to learn more about how to get your licensed medical business going.
Canada’s ban on the sale of concentrates and edibles is set to expire this coming October. With about six months to the day, activity has steadily begun to heat up. Microprocessors and LPs across the country stand well situated to start producing solventless concentrates thanks to lower startup costs and the high demand for concentrates and edibles.
Such high demand also gives hope to a market that many consider underperforming. Looking at the performance of states in the U.S., Canada could get a glimpse into what its future holds. What many see does appear to be positive. That is indicated in the activity by major players, who have taken on R&D as well as M&A activity to position themselves as the leaders of rosin in Canada, as well as a number of other concentrates.
Canada’s Companies Getting Involved in Concentrates
People have been wondering and demanding a variety of cannabis products ever since it was announced the edibles and concentrates would be banned during the first year of legal sales in Canada. From candy to hash to hot drinks, the anticipation over the arrival of these products on sales shelves is trending high and should continue to do so until legalization arrives in October.
The buzz has been heard loud and clear by much of Canada's LPs. Since the ban went into place, they knew this day would come. Now, as it approaches, additional competitors have entered the market for their slice of the action. They include large- and smaller-scale productions in Canada. Rosin stands to be a prominent choice, as does ice water hash and a series of other concentrates made with and without solvents.
It doesn’t take much searching around Canada to see the activity underway. For example, in April Toronto-based accessory distributor humble+fume entered the concentrates market, forming a partnership with 48 North. Talaal Rshaidat CSO of humble+fume explained why concentrates and extraction matter to the industry going forward.
"We believe the cannabis industry has evolved to a stage where the demand in the supply chain has shifted towards extraction and manufacturing and our strategic partnership with 48 North puts us in a very powerful position. With 48North providing Fume Labs high-quality input material, combined with our extraction expertise and robust distribution network, Fume Labs is set to become the 'one-stop-shop' for cannabis concentrates and cannabis products."
Under current regulations, Canadian producers are relegated to only one form of allowable finished cannabis oil products, liquid soft gels. A few legal workarounds are out there, but otherwise, consumers have few legal options to choose from. The landscape will change with the updated laws.
Various points on the supply chain will be able to apply to produce a series of concentrates and other extracted items. Producers will need to obtain a license for either a micro processor or standard processor. A micro processor license is allowed to process a maximum of 600kg of dry flower each year. With a standard processor license, there is no cap. Facilities are permitted to obtain a license for both
Cannabis Compliance Inc. said, "It is anticipated that most small facilities will desire both a Micro Cultivation and a Micro Processor License, however the framework was designed to allow a facility to only process (without cultivation), dried flower purchased from a licensed cultivator."
If a company wishes to both grow and sell wholesale to a province, it must have both its cultivation and processing license.
Obtaining a license requires completing an application package with supporting documentation, in addition to recommending providing additional documentation. CCI wrote, "CCI provides strong recommendations around the proposed site and floor plan, physical security design, Standard Operating Procedures (SOPs) for the operations of the facility, security clearances for key personnel, guidance for notifying local authorities, quality assurance reports, recruitment of the Quality Assurance Person (QAP) and ongoing communication with Health Canada post-submission."
Sales, Investment and Opportunity
Looking at the U.S. market, concentrates continue to eat into the market shares of flower and other consumption options. This trend is likely to remain there and in Canada. Those who are supporting this notion up North point towards figures in the medical market. In March, it was reported that sales of medical cannabis oil rose in the months after adult use laws went into effect.
That said, the effects of legalized sales will require more time for a complete analysis. Due to a series of regulatory hurdles, product selection and store openings were limited. So, its actual impact will likely not come for some time. The expansion of concentrates should only help the market. However, for now, recreational sales haven't been as in demand as some may have anticipated.
However, revenue should not be the prime indicator of the industry's revenue. Looking at the industry as a whole, we can see that Canada's cannabis companies are winning on the stock market. The vast majority are receiving neutral to favorable ratings. Meanwhile, shares of many major names are on the rise.
While market fluctuation will happen, Canada’s market offers much promise. As evidenced by big companies entering the space, concentrates and extraction technology should play a prime part in the industry. With more activity expected to happen, the opportunity for gains should come with it.
We believe that cannabis concentrates will help ignite Canada’s sales. Solventless processing in Canada should play a significant part in the production of commercial and personal use concentrates. This should help usher in the emergence of rosin in Canada, as well as other popular concentrates and consumable items.
With every large LP either already working in solventless processing, or considering getting into the space, Canada looks poised to capitalize on concentrates. This should only prove itself to be more evident as the market matures and the demand for concentrates grows.
If you are a producer or processor looking to set up your operation in Canada or anywhere else, our team at Pure Cannalabs is ready to assist you. Contact us today.
In just four months of operation, Michigan's medical cannabis market generated over $42 million in sales. The potential for the market is expected to reach up to $425 million. Its prospects look to grow even brighter as residents voted for the legalization of adult use consumption and sales to close out 2018. Its market is expected to create up to $1.7 billion in annual sales within the first few years of launching.
In all, the Michigan cannabis market is performing well and looks to do much more in the coming years. While the coastal states to tend to get the attention for its cannabis culture, overlooking the Midwest would be a massive mistake. Michigan leads the way in proving this case. Its cultivation culture has produced scores of cannabis connoisseurs in the growing and processing space.
This culture is nothing new either. The state has long been involved in cannabis reform and culture. That includes the steps made by Ann Arbor in 1972 to decriminalize the plant while launching the Hash Bash at the University of Michigan.
With such a profoundly ingrained spirit for cannabis, it should come as no surprise to see that this culture has flourished over the decades. Now with legalization coming into effect, this community can step further out of the shadows and into a legitimate, viable marketplace.
One of the reasons for such an impressive community is the land residents have to work with. Such large stretches of land allow cultivators and producers to set up shop in a variety of locations across Michigan. Properties across the state vary wildly, from lush 2,280-acre forests in Gladwin selling for just south of $9 million to more affordable multi-acre properties starting in the mid-$100,000 range.
Cannabis being grown in Michigan
It isn't just private residents getting involved either. Recently, the northern village of Kalkaska voted to list 10 acres of its taxpayer-owned land with the understanding that it may be used for cannabis cultivation.
While the opportunity appears rife for the taking, Michigan has had to deal with some hurdles and pain points as its market matured and expanded its access. This includes tumult stemming from the late shifting gears between the state’s open-ended medical market to legalized adult use sales. On the business end, dispensaries and other businesses will have some time to prepare, with business licensing expected to take up to two years to be open to all applicants.
One such way businesses are preparing is understanding the activity on the municipal level. Denise Pollicella told Cannabis Business Times that "a lot of cities" will make the decision to allow adult use sales or not. However, she noted that a good deal of confusion continues to linger. “The impression a lot of these municipalities have is that if they allow medical marijuana, they think they have to allow adult-use businesses, and that is not the case at all. Because of this, I don’t think we will see another large round of municipalities opting in and allowing recreational businesses.”
Other laws could be subject to change, which could impact businesses as well as home cultivators and extractors. There is some speculation that the number of allowable plants for home cultivation could change.
These concerns could alter the progress and potential of Michigan to some degree. However, its benefits appear to outweigh any potential negatives. This includes its advantageous positioning. Situated along the Canadian border, Michigan has access to a legalized market while also having close contact to the busy Northeastern U.S. cannabis market. It is expected that whenever interstate product shipping can occur, then Michigan cannabis could be some of the most active in the space. At the same time, we could see the state importing products from nearby locations to increase buyer interest.
The state also appears set for heavy investment activity. While recent news has centered around just a few companies, millions in funding are already being raised. When the market gets closer to and eventually opens, this activity is likely to rise.
In all, the Michigan market could be one of the most lucrative in the United States to date. Its potential has piqued the interest of nearby states. Meanwhile, investors are already starting to show signs of heavy activity as the market comes into form. With the laws appearing to be friendly towards home growers, and ample opportunity for business owners, we recommend that you check out the latest in rosin technology. Our Helix models are excellent for manual home processing. Meanwhile, the Pikes Peak and Longs Peak rosin press machines could help your business become a top name in Michigan solventless processing.
Contact us to learn more!
Medical marijuana is coming to Missouri. After being voted into law last year, the state has been working on getting its market to the people, just as they voted for. Currently, plenty of questions remain about laws and who will get licenses to cultivate, produce and dispense medical marijuana. Missouri’s citizens now stand poised to receive the medicine they deserve and the regulations they voted for. Here is what has been developing in the Show Me State.
Missouri’s Medical Marijuana Momentum
Missouri's legal medical cannabis market began back in December 2018. However, like plenty of other states to roll out its program, sales did not commence on day one. With only a month between the vote and the legalization of medical marijuana, establishing a viable market would be near impossible.
The agency overseeing the medical marketplace, the Missouri Department of Health and Senior Services, laid out a road map to legal sales. This includes accepting applications for patients and businesses as of January 5, 2019. Fees for patients were $25 per year with businesses ranging between $6,000 and $10,000 for the first year, and $10,000 or $25,000 the following years.
During the first month of applications, the state reported receiving over 400 for medical cannabis businesses. That included 226 for dispensaries, 128 for cultivators and 64 for processors. At a minimum, Missouri must open 192 dispensaries, with 24 in each of the state's eight congressional districts.
According to the state Board of Health, the state has generated $3.328 million in application fees as of March 28, 2019.
To qualify for a cannabis business license in Missouri, applicants must meet each of the following ten parameters:
- "Character, veracity, background, qualifications and relevant experience" of the business's principal owners/managers;
- Business plan. If the applicant wants a dispensary or grow license, they'll be evaluated on their ability to "maintain an adequate supply of medical marijuana," along with security, drug abuse prevention and "any plan for making medical marijuana available to low-income qualifying patients;"
- Site security;
- Experience in a legal cannabis market;
- For testing licenses only, personnel experience with health care and with "testing marijuana, food or drugs for toxins and/or potency;"
- Potential positive economic impact on the community surrounding a marijuana business location;
- For grow operation licenses only, "capacity or experience" in agriculture, horticulture and healthcare;
- For dispensary licenses only, "capacity or experience" in health care plus the "suitability" of the proposed dispensary location and how accessible it would be for patients;
- For manufacturing facilities, "capacity or experience" with food/beverage manufacturing;
- "Maintaining competitiveness in the medical marijuana marketplace."
Despite requests for clarity, the state has yet to elaborate on what “maintaining competitiveness” will entail.
In March, the state posted draft rules for its dispensaries, manufacturing facilities and other medical marijuana establishments. The rules came from the opinions heard at five public forums over a two-month period that winter. In all, 13 pages of regulations were in the draft rules. Highlights include the assigning of facility agent identification cards, with applications beginning February 15, 2020. This has left many wondering if a dispensary or other business could open before this date. Additionally, a company could become vertically integrated, but each facet of the operation must have its own license.
Upon the release of the news, many appeared to suggest that the state was making its laws to generate revenue, not treat patients. "Their job is not to represent the marijuana industry and make sure people are making money on this. Their job is to make sure our health, our safety is protected," Laura Bruce of the Prevention Coalition told Fox 4 Kansas City.
The BoH emphasized that the regulations were not final and subject to change. Currently, its website mentions that rules won't be finalized until June 4, 2019. "Until then, any preliminary efforts being conducted, such as background investigations, will not be accepted," the BoH website added.
The debate continues to rage on between advocates, medical professionals and others in the space. So far, Missouri’s medical cannabis marketplace is shaping up like other states have in the past. That said, all final judgments should be held until its final rules are released in late spring.
Getting Involved in Missouri’s Medical Market
While the rules are yet to be clarified, Missouri looks to be another state that benefits by adding medical marijuana legislation to its books. This is a win-win if enacted correctly. Like Bruce said, it is up to the state to determine laws that benefit the patients first. If it prioritizes the patients, then the profits will follow.
We believe that solventless extraction will find its way into the equation on a commercial and personal scale. While extraction and processing laws await its final ruling, it is likely to assume that solventless extraction will be allowed as a safe and healthy alternative to producing concentrates with solvents.
Those looking to enter the market may want to consider cannabis consulting. Missouri’s market is already filling up. To be sure you’re operation is up to speed, professional cannabis consulting may be the way to go. Contact our team at Pure Cannalabs to find out more.
After much back and forth, including a long-since passed 100-day resolution to legalize cannabis, New Jersey appears to be on track to allowing adult use marijuana in the state. With New York poised to do the same in April, New Jersey hopes to be first to the market and reap the benefits of sales from nearby states like New York, Pennsylvania and Delaware. While the Governor is optimistic on taxes gains from its sales, others aren't so sure New Jersey will earn as much as Gov. Murphy forecasted.
So what does this mean for New Jersey’s concentrates market and its producers? Will New Jersey rosin become as synonymous with the state as tomatoes and blueberries? Let’s unpack the situation for ourselves and see what’s going on in the Garden State.
New Jersey Cannabis Legalization Progress
The state did not make progress on legalization as planned. Murphy had initially promised to get legislation signed within the first 100 days of his term. This came and went as Democrats in the state couldn't even come to a deal. In February of 2019, progress had finally been made with an agreement appearing done.
However, not all was hammered out by then. As State Sen. Nicholas Scutari told NJ Advance Media "There still are more details to be worked out, but the two sticking points (taxes and a commission regulating the industry), we are there. But we are not finalized.”
Now, regulation appears to be the most significant uncleared hurdle. The Governor has yet to support the idea of an independent commission overseeing the industry, a move other top Democrats want to see.
Other hurdles could still arise in the form of automatic expungements for certain offenses, as well as taxes. The concern around sales tax is that it will lead to price drops seen in markets like Colorado and Oregon. In these cases, tax revenue has been affected as a result.
In March, Murphy's state budget proposal estimate that New Jersey could see $80 million in tax revenue over the next fiscal year thanks to legal cannabis sales. The breakout would see two-thirds coming from recreational sales while the other third comes from its already functioning medical market.
However, with some not believing that a January 2020 start date for sales is feasible, they believe the estimation is way off. Payton Guion of NJ Advance Media pushed back on the Governor's claims, writing that "First, it assumes that legal weed sales would start by January 2020 and would generate $60 million in tax revenue between January and June. But such a quick rollout of the industry seems unlikely. Murphy’s budget does include the government spending $21 million to get the industry going and $2.6 million to fund expungements."
With a vote not yet on deck, more could and likely will develop.
New Jersey and Cannabis Concentrates
New Jersey concentrates are already in the mix regardless of legalization. That wasn't always the case, though. For some time, the state barred its licensed providers from selling vape cartridges to patients. In the fall of 2018, that prohibition was waived.
Curaleaf New Jersey, part of the mega-brand Curaleaf, said it would begin selling cartridges of its own. In short order, a press release was out touting its first-to-market manufacturing of products in the space. In the statement, Curaleaf New Jersey president George Schidlovsky spoke on the importance of its new products.
“These concentrates, which surpass the state’s high standards of quality, provide an alternative method of administration for patients who may not be able to benefit from topical or oral forms of medical cannabis,” said Schidlovsky. “Vaporizing cannabis concentrate is considered a healthier alternative to smoking, and is a fast-acting form of administration. I look forward to seeing the positive effect it has on Curaleaf’s patients in New Jersey.”
Under the current law, New Jersey concentrates are available to licensed patients. For example, at Curaleaf, a patient can buy extracted oil in a variety of ratios. However, home cultivation remains prohibited.
So, where does that leave New Jersey's solventless and solvent-based home producers? The likely answer is that solventless rosin extraction is likely not to be an issue as long as it is for personal use. Those hoping to make their extractions into a business could qualify for a microbusiness license the state has proposed. Under these terms, a small cannabis business could open up for much less cost than what a large-scale operation would require.
Regardless of the law, don’t get caught doing something illegal. Currently, the state can fine a person $1,000 and imprison them for up to six months if they possess five grams or less of hash and concentrates. Fines jump to $25,000 if the amount exceeds five grams. If a person goes into business for themselves, they could be looking at years in prison and hundreds of thousands of dollars in fines.
Regardless of the outcome, the black market expects things to be business as usual - as evidenced by the 20-year-old busted with pounds of flower and 1,000 vape refills on him when he got stopped this past winter.
That said, New Jersey may finally turn the corner and get cannabis legalized in the coming months. What that does for New Jersey’s concentrates market remains to be seen. However, home production of solventless rosin is already piquing the interest of producers in New Jersey and beyond.
Be it for personal home use, a micro-business or full-scale production, New Jersey and numerous other states could benefit from rosin production and extraction. PurePressure is happy to serve both home producers and growing businesses with our variety of presses that provide the accurate, equal heat pressure needed to generate golden, potent rosin and other concentrates.
Stay tuned for the latest news in New Jersey, New York, Illinois and many more. We’ll keep you posted.
Legal movements across the United States has 2019 shaping up to be another progressive year for the cannabis industry. As such, solventless cannabis extraction and cultivation is expected to be on the rise even more than it has been in recent years.
Here are some of the most noteworthy happenings that occurred in 2018:
Vermont began last year as a trailblazer in America. The state became the first to legalize adult use consumption via the legislature instead of voting. Since then, the state has focused on solidifying the laws for recreational sales. Nearly a year later, and the parameters of the marketplace seem to be near completion.
While the state hammers out the critical details, its medical program is up and running.
A recent poll found that 60% of New Mexico residents support legalizing cannabis for adults 21 and over. More telling, all five geographic regions of the state - from the conservative east to liberal north - all support the measure. Under newly inaugurated Governor Michelle Lujan Grisham, the state now has a pot proponent leading the state. Could this lead to New Mexico allowing adult use?
Forbes believes so, including New Mexico in its list of states most likely to legalize this year. With lawmakers on both sides of the aisle acknowledging that cannabis will be legal soon, it only makes sense that The Land of Enchantment will follow consumer trends and see an uptick in concentrates purchases and production.
New Jersey Governor’s promise to legalize cannabis in the first 100 days of his administration did not come to fruition. That said, progress was made in the Garden State. Some held out hope that a vote could legalize cannabis during the final days of 2018. However, that did not come to light as lawmakers hash out the finer details. One of the main points being how much recreational pot should be taxed. Some expect that if lawmakers can come to terms early enough, the Governor could sign off on the bill as early as February.
Connecticut is another state whose cannabis prospects are brighter thanks to a newly inaugurated Governor. This past year, the state was expected to vote on a legalization bill, but that did not come to fruition. The stalling of the process has a high likelihood of moving forward in the new year. The Constitution State's new Governor, Ned Lamont, will be sworn in on January 9th - unofficially marking the push for legalized cannabis in the state.
With the University of Connecticut offering courses in cannabis careers, it’s high time the state follows through on what some expected to occur in 2018.
Cannabis' prospects in the Midwest became ridiculously bright after Michigan voted to legalize adult use in November 2018. With tax revenue expected to earn $130 million per year, other states in the region may soon follow suit.
Illinois’ incoming Governor, JB Pritzker, has made his feelings clear: we need to legalize marijuana. State lawmakers in the lead up to Pritzker's inauguration. This includes rallying support for legalization bills. So far, efforts haven't swayed key communities entirely and more work is required to ensure that legalization will positively impact the people affected most during the prohibition era.
The Land of 10,000 Lakes joins Illinois as another Midwest state that may make significant cannabis progress in light of Michigan's news. Like Illinois, the state has a new Governor, Tim Walz, who has pledged to overhaul cannabis policy in Minnesota.
Since Walz election victory, news outlets have buzzed over possible legalization. While it does seem that Minnesota will have adult use cannabis one day, uncertainty surrounds its actual happening. That said, with in-state CBD sales hot this past holiday season, it appears to be that citizens are clamoring for cannabis access.
While New Hampshire made the list, it comes with a prominent caveat. That caveats name is Governor Chris Sununu. Unlike several of the states rumored to make moves on cannabis, The Granite State does not have a supporter in its Governor. Sununu is such an opponent that his opposition mirrors that of Maine Governor Paul LePage and his regular efforts to derail cannabis legislation.
Gov. Sununu is such an opponent of the plant that he recently called legalization "the next major battle" in his administration. Despite the staunch opposition from the Governor, the state’s Congress could push through the agenda. Now, with both parties controlled by Democrats, some lawmakers believe that there is enough support to override Sununu’s opposition.
New York Governor Andrew Cuomo used to be anti-legalization. That appears to have changed thanks to adult use sales in Massachusetts as well as New Jersey’s expected legalization. Now, the Governor is taking a page out of Governor Murphy’s playbook. In December, Cuomo announced plans to push through adult use laws in the first 100 days of 2019.
The move is widely rumored to be influenced mainly by revenue. Back in May of last year, New York State's comptroller found that the Empire State could generate an estimated that the $3.1 billion in annual state sales could result in a $1.3 billion in tax dollars generated per year.
Rhode Island lawmakers appear to be reluctant to legalizing cannabis. That said, it also seems that they understand it is likely to happen regardless of their personal feelings. This outcome was supported by the state's Governor Gina Raimondo. As 2018 came to a close, the Governor admitted that with neighbors Massachusetts and Connecticut embracing legalization efforts, the small state may need to follow suit.
While the state mulls legalization, its medical program may expand in the meantime. Rhode Island began the year by considering joining a small yet growing number of states to expand medical access to anyone with an opioid-based prescription.
Commercial Scale Production Opportunities on the Rise
With such developments, producers in these states and beyond could find themselves flush with opportunities soon. Commercial-scale solventless processing and extraction are slated to have a huge 2019. Technological advancements in recent years have brought solventless hash technology from DIY rosin press setups to processes that can rival solvent-based extraction.
While we can’t guarantee any progress in the states above, each has excellent potential and demonstrates the nuances that make cannabis an intriguing subject to follow. Each represents a different push in cannabis progress. From New Hampshire’s potential clash between Congress and Governor to New Jersey’s will they-won’t they dance with adult use, each state presents an intriguing look into cannabis laws in America. Depending on how they play out, cannabis extraction could stand to benefit more than most other sectors of the industry.
Much more is left to unfold. That said, opportunities are rising. Now is the time to prepare yourself so you can be in on the action when state regulations allow for it. Contact us today to find out how you can get started with your own bubble hash and rosin press production venture.
Be sure to learn more about the states mentioned over at Forbes.
New Mexico was the 12th state to allow qualified citizens to consume medical cannabis back in 2007. Guidelines took nearly two years to complete. However, the market came to fruition at the benefit of its citizens. In the years since, the program has seen expansions, including allowing licensed producers to cultivate more plants while also fighting off repeal efforts in 2011.
Progress continued with additional medical cannabis expansions as well as decriminalizing possession offenses in select cities like Santa Fe and Albuquerque. In recent years, a hemp debate has also raged on so much so that it had the former Governor and their veto being contested in court.
Through all the political back and forth, the state has established itself as a destination for a handful of well-known producers. They include people like husband and wife duo Eric and Rachael Speegle. Since 2010, the two have run Verdes Foundation.
Originally, the plan was to cultivate cannabis for medical use. Today, however, the program has expanded to accessories, concentrates and edibles in addition to flower that comes from the company’s 22,000 square foot facility in Albuquerque. Other in-state cultivators have big goals as well. They include large-scale plans from the state’s most lucrative cultivator, Ultra Health, and its decision to build a 200-acre cultivation site in the southern town Tularosa.
Recent figures found that the state's program currently has over 66,000 patients enrolled in the program - a 40% jump from the year before. In addition to patient growth, the state's industry includes 81 dispensaries, up from 67 the year before, and 35 companies cultivating over 15,000 plants - up from over 13,000 the year prior.
With an upward trajectory on display, New Mexico hash and rosin production is expected to follow. State regulations already allow oils, shatter, wax, vape pens and other concentrates as part of its medical marketplace. If the state expands to adult use, the boom in producers should follow in short order. If true, then an influx of rosin in New Mexico seems like a probable outcome.
New Mexico’s Craft History Fits with Cannabis, Rosin
New Mexico has a long history of art and finely made crafts. This includes the years prior to colonization and the present. With numerous cultures and walks of life calling the land home over the years, New Mexico's art tells a history of the land. This is told through folk art, trails, cultural districts and the vast amount of art in public spaces.
New Mexico's creative community extends beyond art. It includes artists in other professional fields as well. In recent years, that includes the state's booming craft beer brewing scene. Known for bold IPAs and ciders, several of the area's brewers have garnered public praise in recent years.
In addition to the people and cannabis businesses mentioned above, we expect New Mexico's market of skilled cultivators and producers to grow in the coming months and years. This is particularly true in the hash and rosin spaces. We already have a handful of lords of hash and rosin who are known for the skill in crafting six-star level concentrates. With its rich history of making beautiful creations from art to beer, we anticipate that New Mexico will produce its fair contribution of top-flight producers as access expands.
Will New Mexico Legalize in 2019?
The state appears poised to expand its medical market in 2019. However, that may not be the only cannabis progress made in New Mexico this year.
The state is now under the leadership of a new Governor, Michelle Lujan Grisham. Under Lujan Grishman, the rules could change dramatically. Former Governor Susana Martinez did not personally approve of cannabis, even in medical form. Some also wondered if the Governor would try to repeal the law but those fears, thankfully, never came to fruition.
Those worries will not be an issue under Governor Lujan Grisham. Instead, the state and its cannabis businesses appear to have an ally. That includes a promise to allow for additional business licenses in the first 30 days of her term.
With Lujan Grisham leading the state, lawmakers may be inclined to submit legalization bills. Efforts were made under the past administration but were pulled after it was not part of then-Governor Martinez's 30-day session. Meanwhile, citizens appear to support legalization at a significant number.
All these factors appear to be lining up for a possible renewed legalization effort in New Mexico. While we can’t assume what will happen, the trend in the U.S. shows that recreational measures are on the rise. With Michigan set to become a significant player, and New York and New Jersey on the cusp of legalizing, the Southwest is one part of the country that has yet to embrace legalization truly. The first substantial movement very well could come from New Mexico.
If so, then we believe that cannabis cultivation should spike. Along with it will be concentrates production. Should the state legalize, rosin in New Mexico should take off. Additional production facilities will join the market. As will home producers looking to make DIY yields for themselves and friends.
Regardless of the operation’s size, PurePressure is happy to provide you with all the molds, rosin presses, and freeze dryers needed to make premier rosin and bubble hash. Those looking to make solventless products in New Mexico need to get ready today. We’re happy to help. Contact us to learn more.
A November ballot measure showed that Michigan voters wanted legal pot at a margin of 56 to 44 percent. And what the voters want, the voters get. Though, it certainly comes with headaches.
Regardless of ongoing legal hurdles or a lack of sales for some time, December 6th saw the state’s recreational cannabis laws go into effect. Under new regulations, citizens 21 and over are permitted to possess up to 2.5 ounces of cannabis - the highest allowable limits on the books today. Additionally, Michiganders can have up to 10 ounces of marijuana at home while cultivating up to 12 plants for personal use. However, some pushback to home cultivation may come about.
Michigan is blazing a trail as the first Midwest state to open its recreational cannabis industry. As the first to market, the results should have an immensely positive impact on life in Michigan. It may also do the same to surrounding states. Market trends from other states indicate that solventless products from vape cartridges to edibles are in-demand. When sales open in 2020, the demand should only be that much higher.
By planning today, Michiganders can understand the laws concerning extraction and how to establish an operation that suits their needs. In a market slated to generate billions in the coming years, we believe rosin press machines will make an excellent addition to any Michigan concentrates operation.
Michigan Cannabis Laws: How Does Solventless Extraction Benefit?
Under the new laws, Michigan citizens 21 and over are allowed to participate in the consumption and production of recreational marijuana. They join those previously approved under the state’s medical program which began in 2016. Like most states, public consumption remains prohibited. However, possession and use at home are perfectly fine.
Much like alcohol, the law prohibits underage consumption, driving under the influence and the unlicensed selling of any cannabis products. While sales are illegal, you are allowed to transfer product to other adults for free. Under the law, adults can freely transfer up to 15 grams, or 2.5 ounces, of concentrate between one another. 15 grams is also the maximum amount of concentrates a person can legally possess in Michigan.
These laws indicate that concentrates are going to be a hot commodity. Unlike Canada, Michigan appears to understand that concentrates are only going to become more of a central figure in cannabis markets in the years to come.
Furthermore, solventless extraction could stand to benefit from specific rules surrounding extraction. Processing cannabis into concentrates using solvents is banned in Michigan homes. The use of solvents is relegated to non-residential buildings. However, home producers and small businesses can use rosin presses and ice water extraction. The safer alternative to extracting more flavorful concentrates is guaranteed to rise in demand as the market heats up. Figures already show that other states are fond of concentrates. Michigan should be no exception.
Meanwhile, a late November lame duck effort by Senate Majority Leader Arlan Meekhof has attempted to ban home growing. Meekhof proposed the ban to ward off flooding neighborhoods with pot. Though still up for consideration, the move is likely expected to fail. However, until resolved, the matter should be followed. The measure could do significant damage to the budding market if passed.
Michigan’s Cannabis Market Potential
While each new state to enter the market is exciting, Michigan’s recreational rollout has piqued the industry’s interest more than others. Figures from Marijuana Business Daily project that within seven years Michigan's recreational market stands to generate between $1.4 billion and $1.7 billion in annual sales. This would make Michigan one of the largest legal markets in the United States.
To put those numbers into clearer context, the entire U.S. market stands to earn $11 billion in 2018. In two years, Michigan could be responsible for nearly a tenth of the country’s cannabis revenue. These sort of figures could prompt the state’s neighbors to get involved as well. If so, the Midwest market would be alive and thriving much like the potential in the Northeast if New York and New Jersey go recreational.
With a first to market advantage, Michigan could be a catalyst state for the cannabis market. Much like how we’ve closely studied California and Colorado, Michigan may very well join the ranks of these influential markets. With laws allowing for larger quantity possession and home cultivation, Michiganders are afforded more leeway than most states.
As such, Michigan’s solventless extraction market stands prime to become one of the top sectors once sales begin in 2020. The market should boom as it has in numerous other states to date. As a versatile product that is safe to produce in virtually any environment, solventless extraction is a beneficial component of a thriving operation. Contact us today to learn about our turn-key lab consulting or our rosin presses.
Canada finds itself on the verge of great things in cannabis. The country is slated to export its products across the globe, giving itself a first to market advantage over all the other nations. One of the key sectors will be cannabis concentrate production, which is not for sale in Canada's new market. Despite the short-term limitation, this is not holding back a market that is rife with opportunity for major player LPs as well as mom and pop craft creations.
With an abundance of material and a head start, it's on Canada to steer its course correctly. Here is how prospects look so far.
Canada’s First to Market Advantage
While Uruguay was the first nation to legalize recreational use, Canada set itself apart by becoming a booming market with an influential hand in research, exporting and other intercontinental efforts. By being the first nation to do so, Canada gives itself a first-mover advantage. As the first to the international market, companies both large and small are valuable entities, with many expanding into other countries with ventures ranging from sales to research.
Some experts project that Canada will continue to extend its influence in the global market as domestic efforts alone will not allow Canada's market to prosper. However, with a continued focus on global expansion and innovation, the country should remain one of the top markets as others enter as well.
Canada Makes Cannabis Entrepreneurship Accessible
Canada is on the verge of a craft cannabis revolution, and not just products from major player LPs such as Aurora, Tilray, and Canopy. Canada had a focus on creating a cannabis market that would lead to more than a few behemoths. Thanks to several classes of licenses, large- and small-scale ventures obtained licenses prior to legalization day on October 17th. The stages of licenses include:
- Processing (micro and standard)
- Producers (micro and standard), nurseries
- Industrial hemp
- Analytical testing
- Medical sales
Canada continued to expand entrepreneurial access in the new space. Though, this decision came to the surprise of some. The country’s licensing body, Health Canada, opted to allow non-violent cannabis offenders to receive licenses as well. Instead, those with a charge on their record will be examined on a case by case basis. In addition to allowing access to non-violent offenders, black market growers have an avenue into the legitimate sector as well. Using the micro-producer license, black market genetics producers can register their work and sell to nurseries and other genetics companies to create products for the public. The decision is an attempt to remedy the old system which saw some high-quality strains never reach the market.
Through its varying stages of licenses and other inclusive measures, Canada provided its sector with ample opportunities to establish itself. Today, this growth is appearing on the large-scale as well as in craft cannabis.
90u Bubble Hash from Bubbleman
Restriction on Edibles and Concentrates Present Short-Term Roadblock
Though Canada’s first to market advantage is in effect, restrictive laws hinder progress to some extent. While it is evident that the solventless processing currently done by producers in Canada is impressive, these items cannot reach domestic sales shelves just yet. For now, they have to find their way to the U.S. and other countries.
This outcome is due to the one-year prohibition on selling edibles and concentrates. The exclusion means that consumers seeking rosin, edibles, drinks, cartridges and much more once again only have the black market to turn to. The settlement came in 2017 and is designed to allow lawmakers more time to learn about these products. From there, a set of regulations will be implemented, and their sales will commence.
The decision was and continues to be controversial among citizens, business owners and lawmakers alike. Those pushing back on the decision claim that little to any new information will come to light during this downtime. Meanwhile, illegal sales will continue to thrive.
With cannabis concentrates in Canada on hold, the black market is acting a bit more out in the open than it once had. Reports a week before legalization day found that "at least a dozen" websites sold edibles illegally, with some in operation for more than a year already. With legalization just about to begin, lawmakers began wondering if the ruling party allowed these sites to operate despite their nefarious actions.
Canadian cannabis processing was indeed dealt a blow by the one-year ban. That said, the black market sales are concerning in that there are no laws in place. In rare cases, children have been hospitalized for ingesting THC infused gummies. However, these rare cases should not dampen an exciting space. Soon enough, regulations will be in place and solventless processing can truly come to light. With a clear demand, solventless concentrates and edibles are sure to become top sellers once they are legally sold online and in shops.
An Amazing Market Potential
As mentioned above, if Canada plays its cards right, then its first to market advantage should translate into sizable earnings for business owners and the nation alike in the years to come. Analysts from CIBC predicted this past summer that Canada's market revenue could reach $6.5 billion by 2020. Additionally, first-year projections from Deloitte found that the country could generate $4.3 billion in legal cannabis sales during the first year of operation.
This sort of market potential shows what Canada’s revenue potential could look like without edibles and concentrates. Now, imagine what happens when they are introduced to sales shelves and online marketplaces. Rosin in Canada is sure to take off as a high-quality solventless concentrate that works for dabbing just as it does for edibles.
Overall, solventless processing continues to evolve from its DIY days to become a safe, reliable form of extracting cannabis. Without breaking the bank, extractors can produce highly potent yields from top strains. At PurePressure, we are proud to serve as the industry leaders in commercial grade rosin extraction. We are excited to become the primary solventless equipment provider to rosin extractors in Canada.
To learn more about solventless processing, check out our other article that dives into commercial-grade solventless extraction.