In today’s blog, we are joined by Matthew Anderson, Founder/CEO Vanguard Scientific Systems, a world-leading provider of end-to-end solutions for integrated botanical extraction equipment and services.
The Cannabinoid Buyer’s Needs of Tomorrow
The Global production of Cannabis and Hemp has been forecast to exceed 30 million kilos per year by 2022, with an expectation that more than 80% of the total biomass produced will be turned to oils, extracts, and additional ingredient derivatives to service an addressable market potential of more than $2.6 Trillion Dollars US across the segments of pain, sleep, therapeutics, nutrition, euphorics and cosmetics. But is this growth serving the needs of cannabinoid buyers?
With an undeniable need for specific ingredient creation, identifying cannabinoid buyer demand, and meeting regulatory requirements for compliant production, an anything but straightforward landscape exists for those processors currently operating within the various sub-markets of the Global Cannabinoid Industry as well as those preparing to enter.
A number of contributing factors further bifurcate the processing landscape, forcing processors, extractors, and formulators to specialize their efforts in order to capture invaluable market share during these first years of commercial and industrial scale manufacturing.
Today, the variability of ingredient creation capable through the extraction process, and their resulting marketability are not uniform, nor are the equipment and methodologies employed. This directly impacts the end cannabinoid buyer.
Further, a range of the specific compliance and regulatory requirements to be met by licensed processors are highly dependent on the final Market in which cannabinoid derived molecules, ingredients, or formulations are being sold. Acceptable practices, systems, and protocols are being rapidly mandated by larger commercial cannabinoid buyers entering from industries such as Consumer Goods, Natural Supplements, Nutraceuticals, Pharmaceuticals, Wine, Spirits and Beverage. Rigorous processor requirements are limiting the number of qualified producer and processing vendors capable to meet the compliance rigor demanded.
Meeting Tomorrow’s Needs Today
In order for the Industry to scale, standardization of processes, equipment, facility and methodologies will be imperative. Traceability and real-time inventory controls will define not only compliant supply-chain management, but will provide valuable origination and provenance identification, allowing producers and manufacturers to create product differentiation in the market beyond the current Sativa, Indica, THC, CB(x) Terpene conversation currently driving cannabinoid buyer preference and branded product creation efforts. Only when source material and all steps in product creation following harvest are uniform, will true consistency, repeatability, and experience be possible.
Compliance, regulation, and consistency will be a hallmark of our Responsibility as productive members of this cannabinoid Society.
As any young and growing industry matures, the guidance and direction required needs to be done in the interest of creating an environment in which the created economy can thrive. Like raising a child, we are amidst an ‘awkward’ stage… and while there are certainly growing pains being felt by all parties, it is imperative that the industry embraces the evolution of ‘growing up’. Many practices deemed appropriate in the past will no longer be viewed as acceptable moving forward. Compliance, regulation, and consistency will be a hallmark of our Responsibility as productive members of this cannabinoid Society. If the right action is taken now, the industry will not just become another alternative channel in natural medicines, but it will pave the way as a leading example for botanically derived, plant-based healing legitimacy.