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.

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.

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.

med_icon_mobile
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.

Medical

Helps Manage

  • Pain
  • Epilepsy
  • Insomnia
  • Inflammation
  • Schizophrenia
  • Nausea

Typical Products

  • Topicals
  • Capsules
  • Oils
med_icon_mobile

Medical marijuana has already reduced2 US healthcare costs by:

$165.2M

Recreational
smiley face

For relaxing, being creative,
socially or privately

judge hammer

But, don’t forget!
An age limit of 21+ is
required in all legal states.

Interested in speaking to a FlowerHire career expert?
Interested in speaking to a FlowerHire career expert?
popular products

Legalization has led to innovation in form factors and dose control

flower
Flower

Typically ground up for consumption and strain specific

beverages
Beverages

Drinks that contain CBD and/or THC

edibles
Edibles

Food that contains CBD and/or THC

tincture
Tincture

Drops of oil that contain CBD and/or THC 

preRolls
Pre Rolls

Flower that has been ground up and rolled, ready for use

topicals
Topicals

Extract that has been made into an oil or lotion

cartridges
Cartidges

Concentrated oils in a cartridge to be used with a vape pen

capsules
Capsules

Pills that contain some type of cannabis extract or powder

popular products

Legalization has led to innovation in form factors and dose control

flower
Flower

Typically ground up for consumption and strain specific

beverages
Beverages

Drinks that contain CBD and/or THC

edibles
Edibles

Food that contains CBD and/or THC

tincture
Tincture

Drops of oil that contain CBD and/or THC 

preRolls
Pre Rolls

Flower that has been ground up and rolled, ready for use

topicals
Topicals

Extract that has been made into an oil or lotion

cartridges
Cartidges

Concentrated oils in a cartridge to be used with a vape pen

capsules
Capsules

Pills that contain some type of cannabis extract or powder

major industry limitations

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.

major industry limitations

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
Deciphering the cannabis verticals

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.

Deciphering the cannabis verticals

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.

know your consumer

0
%

Male Consumers5

0
%

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.

where’s the market?
where’s the market?
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US THC Sales in 20197
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US THC Sales by 20247
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US Jobs Created in 20199
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Predicted Job Growth in 20209
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B
US THC Sales in 20197
0
B
US THC Sales by 20247
0
K
US Jobs Created in 20199
0
%
Predicted Job Growth in 20209
Multi-State Operating Companies
Multi-State Operating Companies
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