The weed industry is one of the fastest-growing sectors in the United States. With more states like Maryland and Missouri legalizing recreational cannabis, the industry is poised to provide more opportunities for ancillary cannabis businesses. Although marijuana remains illegal at a federal level, many states are reversing medicinal and recreational cannabis laws. This has largely contributed to the steady growth of the sector.
Business Opportunities In The Cannabis Industry
Many think that the cannabis industry only constitutes cultivators, manufacturers who refine weed into various products, and dispensaries that sell the finished products. However, the industry has evolved into much more than these key sectors.
Marijuana businesses can be broken down into two categories; plant-touching and ancillary cannabis businesses. Here’s a closer look at each to help you understand how they operate.
Plant Touching Cannabis Businesses
As the name suggests, these are businesses that handle cannabis directly. They are involved in the growing, processing, and distribution of marijuana. Some of the firms include breeders, cultivators, manufacturers, and dispensaries. It’s important to note that they are some of the most heavily regulated enterprises in the industry. The applications for plant-touching companies are usually strict, with laws varying from state to state.
Ancillary Cannabis Businesses
Ancillary cannabis businesses are companies that provide support for plant-touching businesses. Although ancillary marijuana businesses are also subject to strict regulations, they avoid some of the more stringent guidelines. Here are some of the most common ancillary cannabis businesses in the industry.
Packaging
Packaging companies play a significant role in the marijuana sector. Considering that weed is strictly regulated, cannabis packaging has to adhere to the stipulated guidelines. These businesses provide the necessary packaging for dispensaries and smoke shops. They also have to factor in other vital needs of companies, such as packaging design and regulatory considerations that pertain to packaging laws.
Professional Services
Almost all industries require the services of professionals like accountants, lawyers, and digital marketers. The cannabis industry is no exception. Since operating a cannabis business has many technicalities, the services that these specialists offer are in high demand. The professional advisors need additional expertise tailored to the marijuana sector.
Security
Since cannabis isn’t legal at the federal level, banking has become a huge challenge for many businesses. This has forced marijuana companies to operate on a cash basis, making things more complicated. Cannabis businesses have become prime targets for robbery since they heavily rely on cash transactions. For this reason, owners have been forced to invest in security to safeguard their premises.
Bottomline
Ancillary cannabis businesses play a huge role in the marijuana industry. They provide the much-needed efficiency that plant-touching companies require. They also offer innumerable opportunities for entrepreneurs who want to tap into the growing cannabis sector.
