Recognizing Banking Risks in Emerging Cannabis Business Ventures
September 15, 2018Despite Bumps, CBD Market Growing Toward Convenience Store Shelves
September 19, 2018
- In 2017, rising sales of concentrates in Colorado represented nearly 30% of all retail cannabis sales.
- While in Q1-2016 sales of medical concentrates were 44% higher than for adult-use sales, preferences had flipped by Q4-2017 as adult-use sales outpaced medical sales by 6%.
- Overall, the number of concentrates sold per adult cannabis consumer in the state grew more than 58%, from 10.4 grams per person per year in 2016 to 16.5 grams in 2017.
- Surging demand for concentrates significantly impacts the cannabis supply chain. Some growers are establishing specific cultivation facilities for flower extraction.
- Sales of concentrates are spurring dramatic parallel growth in sales of vape hardware and dab rigs (oil consumption devices).
- Colorado offers an indication of the demand trajectory for concentrates as adult use markets expand nationally.
- Consumers in the illicit market prefer flower, access to concentrate products quickly shifts their preferences, with concentrates and accessories becoming increasingly popular among their shopping carts.
