UNDERSTANDING THE
CANNABIS INDUSTRY
FlowerHire has mapped out a guide to help
you navigate the complexities, regulations,
and overall newness of the industry.
*All data is subject to change* View Sources
UNDERSTANDING THE
CANNABIS INDUSTRY
FlowerHire has mapped out a guide to help you navigate the complexities, regulations, and overall newness of the industry.
*All data is subject to change* View Sources
THC
&
CBD
Cannabinoids are chemical compounds found in the cannabis plant.
There are over 100 cannabinoids, but THC and CBD are the most abundant and researched.
Cannabinoids are chemical compounds found in the cannabis plant.
There are over 100 cannabinoids, but THC and CBD are the most abundant and researched.
Medical
Helps Manage
- Pain
- Epilepsy
- Insomnia
- Inflammation
- Schizophrenia
- Nausea
Typical Products
- Topicals
- Capsules
- Oils
Medical marijuana has already reduced2 US healthcare costs by:
$165.2M
Recreational
For relaxing, being creative,
socially or privately
But, don’t forget!
An age limit of 21+ is
required in all legal states.
Helps Manage
- Pain
- Epilepsy
- Insomnia
- Inflammation
- Schizophrenia
- Nausea
Typical Products
- Topicals
- Capsules
- Oils
Medical marijuana has already reduced2 US healthcare costs by:
$165.2M
For relaxing, being creative,
socially or privately
But, don’t forget!
An age limit of 21+ is
required in all legal states.
Helps Manage
- Pain
- Epilepsy
- Insomnia
- Inflammation
- Schizophrenia
- Nausea
Typical Products
- Topicals
- Capsules
- Oils
Medical marijuana has already reduced2 US healthcare costs by:
$165.2M
For relaxing, being creative,
socially or privately
But, don’t forget!
An age limit of 21+ is
required in all legal states.
Legalization has led to innovation in form factors and dose control
Typically ground up for consumption and strain specific
Drinks that contain CBD and/or THC
Food that contains CBD and/or THC
Drops of oil that contain CBD and/or THC
Flower that has been ground up and rolled, ready for use
Extract that has been made into an oil or lotion
Concentrated oils in a cartridge to be used with a vape pen
Pills that contain some type of cannabis extract or powder
Legalization has led to innovation in form factors and dose control
Typically ground up for consumption and strain specific
Drinks that contain CBD and/or THC
Food that contains CBD and/or THC
Drops of oil that contain CBD and/or THC
Flower that has been ground up and rolled, ready for use
Extract that has been made into an oil or lotion
Concentrated oils in a cartridge to be used with a vape pen
Pills that contain some type of cannabis extract or powder
Cannabis is still classified as a Schedule 1 Drug1 under the federal government. This causes a series of obstacles and requirements the industry must navigate.
Cannabis is still classified as a Schedule 1 Drug1 under the federal government. This causes a series of obstacles and requirements the industry must navigate.
Laws and Regulations
State Laws
Determine who may handle cannabis and under what conditions. For example, cannabis is legal in the state of CA but 2/3 of its counties do not allow commerce.
Vertical Integration
Some states offer only one license that includes everything from cultivation to retail (seed to sale) versus other states that require you to obtain a license to operate in each part of the cannabis vertical.
Testing & Packaging
All products must pass testing for contaminants, such as pesticides, and comply with the packaging regulations. These standards will vary by state.
Laws and Regulations
State Laws
Determine who may handle cannabis and under what conditions. For example, cannabis is legal in the state of CA but 2/3 of its counties do not allow commerce.
Vertical Integration
Some states offer only one license that includes everything from cultivation to retail (seed to sale) versus other states that require you to obtain a license to operate in each part of the cannabis vertical.
Testing & Packaging
All products must pass testing for contaminants, such as pesticides, and comply with the packaging regulations. These standards will vary by state.
State Laws
Determine who may handle cannabis and under what conditions. For example, cannabis is legal in the state of CA but 2/3 of its counties do not allow commerce.
Vertical Integration
Some states offer only one license that includes everything from cultivation to retail (seed to sale) versus other states that require you to obtain a license to operate in each part of the cannabis vertical.
Testing & Packaging
All products must pass testing for contaminants, such as pesticides, and comply with the packaging regulations. These standards will vary by state.
Banking
Since cannabis is still considered a Schedule 1 narcotic by the federal government, banks that support it would risk being penalized. By limiting banking options for the industry, businesses are forced to rely on cash. This, in turn, has ramifications in processing payroll, paying vendors and auditing for state taxes.
TAX
280-E Tax Deduction Forbiddance
Under 280-E3, these expenses cannot be deducted by cannabis companies like normal businesses. Only items that are considered “costs of goods sold” are expendable.
Sales Tax in California
Taxes are state regulated and very high
the illicit market
$50B
Illicit Market Value4
Although cannabis is legal in multiple states, the illicit market continues to thrive as legal brands struggle to stay afloat amid taxes, licensing fees, and strict regulations.
Sales in California
Come from the illicit market4
Why?
- 2/3 of CA have no access to local retail dispensaries
- Illicit market allows for cross-border smuggling
- High taxes on cannabis drive up legal prices
Cultivation
Cultivation is the farming process of cannabis. The plant can be grown both indoors or outdoors (known as “sun grown”).
Extraction
Extraction facilities include labs but are NOT testing labs. Here, hemp and cannabis oils can be extracted from the plant.
Manufacturing
The processing, assembly, packaging, and getting products ready for distribution to retailer.
Distribution
A company that controls transport of goods between wholesale and retail. They can bring on other brands and/or distribute their own.
Retail
A storefront is often known as a dispensary and in some cases a provisioning center. A non-store front is known as a depot or delivery service.
Cultivation
Cultivation is the farming process of cannabis. The plant can be grown both indoors or outdoors (A.K.A “sun grown”).
Extraction
Extraction facilities include labs but are NOT testing labs. Here, hemp and cannabis oils can be extracted from the plant.
Manufacturing
Manufacturing involves processing, assembly, packaging, labeling, and preparation for distribution to retail.
Distribution
A company that controls transport of goods between wholesale and retail. They can bring on other brands and/or distribute their own.
Retail
A storefront is often known as a dispensary and sometimes a provisioning center. A non-store front is known as a depot or delivery service.
Male Consumers5
Female Consumers5
CBD is driving new consumers to the market and women are the top consumers of these products.
Top Consumers
Baby Boomers
Mostly due to the medical market and the high prices of cannabis products. This is the generation with the highest disposable income.
