Author: Martha Hernández
Journal: Analytical Cannabis, October 12, 2022
Abstract: Cannabis extraction and testing have become fundamental pillars supporting the transition of the cannabis industry from an illicit market to a legal one. According to a recent Grandview Research Report, the value of the global cannabis extract market stood at $2.74 billion in 2021. The market is projected to grow at a rate of 20.6% to attain a value of $15.5 billion by 2030.
Setting up a cannabis extraction facility involves high startup costs that can easily spiral into several hundred thousand dollars, factoring in leasing a location, obtaining licenses, and purchasing extraction equipment. However, if this is well planned, the capital can be recouped in a short duration. In addition, bear in mind that cannabis is federally prohibited, and therefore, the industry is highly regulated. This impacts several factors such as licensing and the location of the extraction facility.