The marijuana market has quickly become one of the most promising industries of the modern day. With new innovation going on at every turn, it seems like this could be the high point for the market. With all of the growth going on in the space, one of the main issues has been how long it will take for companies to be able to reach their full production capabilities. One of the biggest signs of this came as Canada decided to legalize the use of cannabis for recreational purposes which went into effect on October 17th. This quickly became an example for the rest of the world, but little did they know there was a shortage in cannabis for sale.
The demand within the industry has skyrocketed over the course of the past few years, but companies have not let this fall by the wayside. The opportunity for mass production of cannabis has meant that companies have been building outgrowth facilities for several months now ranging in the hundreds of thousands of square feet. Some experts have stated that it may be a few years before companies are able to reach full peak production capabilities, but how will this affect the industry?
Canada has remained the example of this as their model of cultivation licenses has been the biggest prospect for why there may be a shortage in the market. The company Canopy Growth which has been aiming for as much as 5.6 million square feet of growing opportunity, has only been able to see around half of that legalized for cultivation. This isn’t the end goal either. Once companies have the legalization to have the space they need, they need to apply for a sales permit to be able to put that cannabis into the open market. This means that there is a long process and even longer line for companies wishing to compete to gain some of the massive demand in the market. This has resulted in a massive delay throughout the industry, but experts have also stated that this could be a solid boost for the industry in the end.
Some have stated that it may be a few years before companies are able to reach full production capacity, but they will be able to supply the market in the short term. The top ten companies or so have combined, millions of kilograms of growing potential in the works, but the only issue that currently remains is that of legislation. The U.S. has also been stated to be one of the primary markets for cannabis as states like California and Florida have been working to grow their marijuana markets respectively into the billions.
Only time will tell how well companies are able to fight against the slow paced method of legalization to allow them to be able to sell as much cannabis as they need to, to meet the demand of the growing space. The hopes are high that this can continue to occur as the market matures throughout the next few years and beyond.
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