California Cannabis Cultivation Licensing Update

• California’s fabled Emerald Triangle (i.e., Humboldt, Mendocino, and Trinity counties) accounts for half of California’s cannabis licenses, affirming the region’s longstanding reputation as the nation’s top-producing cannabis region.
• The licensing distribution widens the north-south divide in the state’s cannabis cultivation, with those plus Sonoma, Lake, and Yolo counties anchoring northern production while Santa Barbara, Los Angeles, and Monterey counties lead production to the south.
• While most companies hold fewer than 10 licenses, nearly one-fifth (18%) among more than 5,000 issued cultivation licenses are held by just 20 companies, signaling early consolidation in the space.
• Indoor cultivation accounts for but 14% of licensing, while mixed-light operations (i.e., greenhouses with supplemental light) total more than do outdoor cultivators (45% vs. 41%, respectively), reflecting some significant cost advantages in cultivating under natural light.

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