Solventless Extraction Expected to Take Off in Pennsylvania
Since signing Senate Bill 3 in 2016, Pennsylvania has become a solid example of a successful medical cannabis program. Undoubtedly, the state is poised to be the next strategic location for those looking to grow in the cannabis industry—an essential market for business expansion.
Part of that boom is sure to be Pennsylvania’s cannabis extraction sector.
Since enacting its laws, Pennsylvania has developed an efficient regulatory system, creating a robust consumer market for selling various marijuana products. The state has surpassed expectations and could present a worthwhile advantage for any company looking for their next step.
However, like many states, Pennsylvania has been affected by the current COVID-19 pandemic. The fifth-most-populated state in the country with 12.7 million calling it home, is currently facing a significant budget gap that many believe could be solved through the cannabis industry.
With current pressure for legalizing recreational cannabis as a way to control the state’s budget deficit, Pennsylvania seems to soon become a substantial market in the Northeast, and a top opportunity for many looking to execute profitably within The United States.
Pennsylvania’s Medical Cannabis History
In 2016, Governor Tom Wolf signed Pennsylvania’s medical marijuana bill, which legalized the use and production of cannabis for medicinal purposes. This bill allows cannabis access through a comprehensive medical program to qualified patients, allowing the consumption of up to 30 grams of flower per month, and access to various cannabis products through licensed dispensaries for those who meet the states’ qualifying terms.
Pennsylvania allows patients to buy various products, including pills, oils, topical creams, tinctures, as well as nebulization and vape options, among others. However, patients are not permitted to grow their own product for personal purposes. Growing is considered a misdemeanor and could warrant a jail sentence.
The state considers cannabis a controlled substance in Schedule 1, and whoever is caught with possession can receive severe punishments. Still, the decriminalization of marijuana exists in major cities such as Pittsburgh and Philadelphia.
Sales of medicinal cannabis began in February 2018 and ascended to $450 million in 2019. Currently, there are over 300,000 patients registered in its medical programs, and the list expands as conditions are added. Some expect the sales for 2020 to reach up to $700 million.
Pennsylvania a Top Choice - The numbers
Pennsylvania has all the characteristics to develop a relatively safe cannabis venture. It possesses a robust regulatory body in the Pennsylvania Department of Health. It also offers a high barrier of entry with a limited number of licenses, over 1,4000 approved physicians, and a large and growing number of patients, among other market advantages.
Despite the economic situation, many licensees in the region are receiving acquisitions deals of more than $25million in some cases. Many praise the state for its continued success, smooth operation, and well-run market. According to experts, the state is rapidly growing to become a mature market soon.
Pennsylvania currently lists among the top markets or ones to watch by several multistate operator CEOs in a recent informal survey conducted by Marijuana Business Daily.
However, only the businesses that can offer a variety of products, including solventless options, among others, have an advantage with competitors. As such, we expect extraction in Pennsylvania to become a behemoth of a sector.
Solventless Extraction, the Game Changer
The Pennsylvania medical program is growing exponentially at this time. License holders and those looking to get into the market should plan to include as much variation as possible for their top-shelf SKUs.
Solventless extraction possesses all the benefits that a health-conscious state like Pennsylvania is looking for its consumers. People are searching for brands that stand out by giving them a solution that represents the purest product available.
That is why solventless extraction is the best option, not only for patients but for producers. Solventless extraction produces pure products free of solvents while using low-cost, efficient equipment. Solventless products are clean concentrates that preserve more terpenes and cannabinoids, creating an extremely authentic concentrate or infused product SKU.
From 2015 to 2016, concentrate market sales increased by 125% Moreover, an Arcview Market Research and BDS Analytics report projected cannabis concentrates reaching $8.4 billion in sales by 2022, falling just behind the $8.5 billion projection for flower.
As Pennsylvania’s cannabis market matures and possibly legalizes recreational use, many will have to look into consumer behavior and adapt to provide a SKU variety that people can consider safe and of top quality. Without a doubt, the Pennsylvania extraction markets and concentrates will be a trend to watch.
Growing Legal Market in Pennsylvania, the Top Choice for the Future
Previously, Senator Sharif Street stressed the need to raise state revenue, urging to take up the bi-partisan issue of adult use, and the potential revenue that this decision could generate. According to Auditor General Eugene DePasquale, this bill could generate $600 million per year and help offset the pandemic shortages.
A recent poll commissioned by the Pennsylvania Cannabis Coalition (PCC), showed that 62% of likely voters favor legal, regulated sales of cannabis for adult-use for 21 and older. 59% said that marijuana should be sold through “licensed cannabis dispensaries run by private entrepreneurs", and that to address the expected budget deficit, Pennsylvanians prefer the state to control, tax and regulate the sale of recreational cannabis instead of raising sales, income, and business taxes.
Demand for concentrates continues to rise. In states with significant market share potential, like Pennsylvania, there is no doubt extracts will become a top choice for medical or recreational purposes. As we see the market mature, businesses looking to be part of this market will have to offer consumers more than just great flowers.
Nowadays, every part of the process of a finished product will define the future of its sales. For sure, solventless extraction products will be essential for the consumer who is looking for the cleanest way to consume cannabis.