Marijuana Cultivation Market in the US

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Marijuana Cultivation Market in the US

The data below was taken from a 2020 survey of cannabis growers published by the Cannabis Business Times. There are 16,694 licenses to grow cannabis in the United States. Of the growers, 19% manage 80,000 square feet or more, while 35% have less than 5,000 square feet. There were 324,973 lbs of illegal marijuana confiscated by CBP in fiscal 2020.

Regions in which marijuana is legally grown

Of the North American cannabis market, 58% is grown in the Western region, 25% in the Midwest, 31% in the south, 17% in the northeast, and 6% in Canada.

Percentage of growers in each revenue range

  • In 2020, the percentage of growers in each revenue range are as follows:
    • Five million or more — 11%
    • Two million to 4.9 million — 13%
    • One million to 1.9 million — 10%
    • $500,000 — $999,999 — 8%
    • $250,000 — $499,999 — 7%
    • $100,000 — $249,999 — 12%
    • $50,000 — $99,999 — 6%
    • $25,000 — $49,999 — 4%
    • Less than $25,000 — 26%
    • No answer 3%

Percentages grown in each type of facility

  • In 2020, 60% of marijuana growing was done in warehouses, 41% was in greenhouses and 42% was grown outdoors. (Note: Totals exceed 100% because respondents could select multiple answers.)
  • When analyzed by company, 42% grow in warehouses only, 12% in greenhouses only, 12% outdoors only, 16% in a combination of greenhouse and outdoors, 4% in greenhouses and warehouses, 5% in warehouses and outdoors, and 9% in all three.

The percentage of growers for each range of growing area

  • Cannabis growing area is 80,000 sq. ft. or more for 19% of the growers.
  • The growing area is 50,000-79,999 sq. ft. for 7%.
  • The growing area is 25,000-49,999 sq. ft. for 11%.
  • The area is 10,000-24,999 sq. ft. for 15%.
  • The growing area is 5,000-9,999 sq. ft. for 12% of the growers.
  • Growers with less than 5,000 sq. ft. make up 35% of the growers.
  • The graphic below shows the growth of growing space from 2016 to 2020.

Average production cost per pound ($/lb.) of dried flower produced

Warehouse/ Indoors Greenhouse Outdoors
$1,000 or more 7% 2% 5%
$700 — $999 15% 13% 2%
$500 — $699 14% 6% 5%
$400 — $499 8% 6% 1%
$300 — $399 12% 7% 6%
$200 — $299 7% 12% 11%
$100 — $199 17% 10% 16%
Less than $100 11% 29%
$50-$99 19%
Less than $50 28%
No answer 9% 13% 7%

The average cost to grow a pound of dried flower produced is $100 if grown outdoors, $233 if grown in a greenhouse, and $396 if grown in a warehouse.

Kinds and percentages of automated systems

  • The most widely used automation by cannabis growers is lighting and lighting control, and the least used is for transporting plant materials. The full graphic is seen below.

Top three cultivation and business challenges for organizations

Cultivation

  • Insect and pest control is identified by 37% of growers as their biggest cultivation challenge.
  • Increasing the yield was identified by 31% of cannabis growers.
  • Achieving desired terpene/cannabinoid content is the concern of 28% of growers.

Business

  • The declining prices driven by increased competition is the top concern of 44% of cannabis growers.
  • Compliance with local and state regulations is a concern for 39% of the growers.
  • Finance Management, including banking and 280E, concern 25% of the cannabis growers.

The number of growers.

  • 16,694 entities had licenses to grow marijuana. A breakdown by state can be found in this spreadsheet.
  • The spreadsheet also includes a breakdown by revenue size that can be used to determine large medium and small companies.

Illegal Marijuana

  • There is no record of American grown marijuana seized as illegal in recent years.
  • The CBP seized the following amounts of marijuana in the fiscal years (ending March 30th).
    • In 2015, 602,821 lbs were confiscated.
    • In 2016, 516,122 lbs.
    • In 2017, 366,627 lbs.
    • In 2018, 299.419 lbs.
    • In 2019, 289,517 lbs.
    • In 2020, 324,973 lbs, and
    • in 2021 to October, 33,244 lbs.


Sources
Sources