The cannabis extraction market is an exciting one. According to Facts and Factors, the U.S. market will reach $5.94 billion by 2026, while the global market will reach $28.5 billion by 2027, according to Grand View Research, and everyone is involved.

What these striking numbers don’t describe is the ongoing volatility and real-world constraints that cannabis extractors face to scale up production.

grow It’s not always easy in extraction space. Extractors must navigate a changing environment of new markets, regulations and consumer demands while remaining profitable.

Growing an extraction business is about flexibility and future-proof investment. Since it’s not always possible to switch to a processor, planning for growth from the start is the key to success.

So what can concentrate manufacturers do today to ensure future growth is as smooth as possible?

Common setbacks and pain points in the extractive industry

Hemp processors each respond to unique situations based on the state and even the county in which they operate. However, despite the large regional differences, there are several common pain points.

First, there are the astronomical start-up costs. Nearly everyone interviewed for this article mentioned how tight the budget was, not just for the initial expansion, but also for the future potential of the facility.

Early cutting corners often created significant constraints on future expansion.

Marcus Moates, owner and founder natural lab extract, has operations across the country, including California, Nevada and Oklahoma.

In his experience, “Most interstate operators spend so much money that when they find the right team of consultants, they’ve already spent too much money, and they just don’t want to spend more.”

If adjustments were needed, Motz found that these operators had been eliminated and capital had dried up. Facilities are forced to work with current systems, which often compromises product quality and future growth.

A second common frustration occurs when expanding into new markets.

span nation, there is a patchwork of legislation and regulations covering all things marijuana. Most multistate extractors face a whole new set of challenges in each state and even each county.

For example, local county fire chiefs play an important role not only in determining how many, if any, marijuana businesses exist in their area, but also what kinds of businesses they can open.

Not all counties are open to all solvents, and many counties have restrictions on volatiles such as butane.

Moates details how Nature Lab Extractions operates under California’s Class 6 Non-Volatile Solvent Extraction License, since obtaining Class 7 volatile solvents is nearly impossible.

He’s not the only processor to find that facility expansion is largely limited by local regulations on the solvent itself.

Plan to rotate according to local restrictions

As with all extraction facilities, the limitations of the local environment are obvious. What are the regional restrictions on volatile solvent handling? What does the local landscape provide for the raw materials? Once the parameters are set, the scaling can be done there.

For example, if the expansion of hydrocarbon extraction operations is planned, there may be regional constraints on on-site capacity. If there is no room to increase the physical infrastructure due to the high butane concentration on site by the local fire marshal, what other options are there?

In this case, increasing production (and profits) may just be a numbers game. In addition to new equipment, can new software help improve overall system efficiency across the supply chain? Backbone is one such option: supply chain and compliance tracking software that integrates directly into the production floor.

As Product Owner Erika Tingey explains, “Backbone is specifically aimed at manufacturing and the entire supply chain” to ease the burden of compliant data entry and help extractors make data-based adjustments across the supply chain.

In another instance, Motz opened another local limit, forcing a dramatic shift. Due to the low quality of local raw materials, he strategically adjusted plans in Missouri.

He describes how “the city is determined to help you move forward. The state is determined to help you move forward. But the problem is, once you start, there is no material. A lot of the material that is available, we would say, is very, very low quality.” In this In the new market, Moates plans to focus on distillates, which do not require high-quality input to guarantee output purity.

While Nature’s Lab Extracts produces premium high-terpenoid, full-spectrum extracts in other markets, cultivate Just getting started in Missouri. In this case, it is not the local regulations that dictate his operation, but the product available.

Future-proof equipment investment

As the marijuana market has exploded, many device manufacturing companies have turned their marketing to the industry.Cannabis can make big money, and these makers are hungry for it
on boat.

However, not all extraction equipment will work in the mature cannabis market.Soon, regulators are expected to equipment The authentication of the extractor.

Eighth Revolution’s Bryan Fields (co-founder and CEO) and Kellan Finney (co-founder and chief scientific officer) both warned against cutting the cost of cheap, uncertified devices.

Eight Revolutions approaches the cannabis and cannabis industry with an analytical mindset, providing an agile approach to an industry facing constant change. In just two years of operation, they have helped several large pumping units meet many of these equipment challenges.???

Fields and Finney anticipate that every piece of equipment involving plants will need to go through multiple layers of certification, including UI, NRDL and GMP. Most of the extraction equipment currently used across the industry will not cut it.

As Finney detailed, “device makers see [cannabis] As an exciting opportunity to sell equipment in the field. “Nevertheless, only experienced equipment manufacturers in the food-related industries understand the importance of certain components to safety standards.

For example, certification can cover everything from metal composition (grade 316 steel) to welding diagrams to clearly displaying those characteristics on every piece of equipment.

In the near future, Eighth Revolution predicts that all extraction equipment in mature markets will have high requirements for equipment certification. According to Fields, “a misunderstanding of what this entails will be an eye-opener about what is currently operating in the field.”

Any processor looking to scale must keep the looming certification requirements in mind. Retrospective certification of equipment is generally not possible.

Bryan explained that it “is not as simple as putting stickers on some of them. It will take a lot of R&D to get these devices ready and certified.” He has already witnessed one extractor holding An expensive, uncertified, six-figure paperweight.

Operators will need to plan to upgrade current machines and ensure that all new purchases are within expected parameters.

Industry insiders’ views on scale-up of extraction

Whether starting out or preparing for growth, cannabis extractors face a complex puzzle of regulation, restrictions and future variability. Three important conclusions can be drawn from multiple conversations with industry experts.

First, cannabis extraction is the game that deep-pocketed brands do best. Cutting corners in the early stages won’t make things any easier in the long run. A smart investment in certified equipment will pay off as the market matures, regardless of solvent or process.

Second, take the time to understand your local limitations and work within them. Working closely with the local fire chief is just one example. It is also important to know the local raw material supply. Implement detailed data analysis tools to intelligently scale within parameters.

Third, planning for a future in which cannabis extraction requires rigorous certification, including UI, NRDL, and GMP. Buying a makeshift and uncertified machine might save you money today, but it could lead to the nightmare of a head-scratching six-figure paperweight in the near future.

Extraction scale is not as simple as adding more machines and more solvents. In a mature market, there are real local limitations to navigation and looming regulation. Use all available tools for compact, efficient operations, and don’t cut corners on your equipment investment. ?