The Top 5 Reasons California’s Cannabis Market Is Thriving

It’s common knowledge that California is the biggest market for legal cannabis sales. Being the biggest and most populous state, this makes sense. But with this fact, many new brands see entering the California market as an impossible feat. 

On the flip side, a growing number of brands see the flourishing market not as a barrier to entry but as an opportunity to capitalize on the market that’s thriving the most. 

So, to help your brand strategize for the future (and not get left behind!), we set out to answer the question: is the California cannabis industry really that saturated? Keep reading for an insider’s POV and all the facts on the latest California cannabis trends and sales data to put the rumors to rest. 

An Insider’s Look at California’s Cannabis Market Share

“You can infuse so many different products with cannabis, the amount of cannabis products is essentially unlimited,” says Ken Hwang, attorney, and co-founder of My Green Network. And that reigns true, even in California. Brand differentiation is crucial in a state the size of California, which boasts a massive cannabis market share. In Q2 of this year alone, California’s taxable adult-use cannabis sales reached $1.2 billion, a 2.9% increase from the quarter prior. 

California cannabis trends also show that consumers are craving differentiation, too, as people’s preferences slowly move away from traditional flower and toward more advanced and creative ways of consuming cannabis. For instance, the state’s pre-roll category is experiencing exponential growth, with sales shares increasing by 21.6% from June 2021 to May 2022. 

Other notable product category sales to note in this same time period, include – 

  • Edibles, growing by 11.8%
  • Capsules, growing by 22.3%
  • Vape pens, growing by 12.6%

“Retailers are always looking for new types of products to try for their customers, too,” adds Hwang. But it’s not just sales and consumer demand that are propelling the state’s cannabis market forward. There are other key and calculated factors at play, too. So, without further ado, let’s get into three more of the top reasons brands are increasingly capitalizing on cannabis sales in California, despite fears of saturation. 

Voters are approving local retail growth 

One thing that originally set California and other state markets back was the fact that local jurisdictions could opt out of sales. However, as stigmas begin to slowly diminish and locales see the financial gain of legalization, they’re quickly changing their minds. 

In November of 2022, California residents made their voices heard with over a dozen cannabis ballot measures approved across the state. In the end, the wins are expected to translate to over 70 new retail licenses, allowing more sales to be made and even more customers to enter the market. 

The state is cracking down on the black market

No matter how long legal markets have been around, the black market will always be a problem. In California, industry experts report that roughly 55% of all cannabis sales are made within the state’s illegal market. That means, if it’s to be tamed, the $5.2 billion in revenue that the state saw in 2021 could potentially double. 

This is a fact that the state is very well aware of and is taking strides to eradicate—more so than other states. This year alone, the California Department of Justice’s annual “Campaign Against Marijuana Planting” program was successful in eliminating nearly one million cannabis plants and seizing more than 200,000 pounds of processed material. Even more, the program was recently greenlit to work year-round in the fall of 2022. 

Interstate commerce is on the horizon 

This fall, Governor Gavin Newsom signed several cannabis-related laws into place, including one that opens up the doors for future interstate commerce. Senate Bill 1326 creates an interstate commerce agreement pact and gets rid of a long-standing ban on moving and selling cannabis products across state lines.

Even though the action will require specific criteria to be met, like federal reform, it sets up the state to be at the forefront of the movement once it occurs. It also adds to the momentum and discussion of interstate commerce, with neighboring legal states now permitting adult use and medical sales, like Arizona and Nevada. 

Increased delivery will boost purchasing 

Along with the passed bills for future interstate commerce came new state laws for delivery expansion, too. The SB 1186 measure requires cities to adopt new ordinances by January 2024 that expand access to medical patients through delivery to patients directly or their primary caregivers. 

While California often sets the trends for the states, Canada is the country that sets the standards for legal markets and is typically the precursor to what happens here. So, if the new Uber Eats delivery deal in Toronto tells us anything, it means it’s only a matter of time before on-demand consumer delivery makes its way into the Golden State, too.  

“Delivery is the way. Older generations do not want to go to shops. While the younger generations are already familiar with delivery for everything,” adds Kenton Wong, co-founder of My Green Network

How to Break Into California Cannabis Trends

If you’re from out of state, out of the country, or even in-state, there are ways to get your products on the shelves without the traditional hoops to jump through. Again, thanks to the state of California and its expansive collection of licensing types. The Type-S license is unique to the state and permits licensees to make legal cannabis products in a shared manufacturing space. 

My Green Network serves as the state’s premier cannabis cloud kitchen for contract cannabis manufacturing, private-label edibles or goods, and cannabis white-label product production. The facility allows brands to make, package, and sell their products directly to dispensaries through their retail partners without having to pay for licensing, facilities, and equipment upfront. 

“We selected My Green Network because they are small enough to give us personal attention but big enough to scale number one. Number two, they have an incredible amount of technical expertise relative to putting our products together, and it’s really a question of precision,” says John Masis, of En-Tranced, who recently launched the brand’s oral Canna-Mizer in California after starting in the Maine and Massachusetts markets. 

So, to finish and answer the question, is the California cannabis industry really saturated? Yes, but as you can see from what you learned today, there’s plenty of cannabis market share and growth to take advantage of. Become the next cannabis manufacturer in California with My Green Network and schedule a tour of our state-of-the-art facility, today. 

The Top Six Benefits of Partnering with My Green Network

cannabis contract manufacturer

Despite our differences, there’s one thing we can all agree upon: the cannabis industry is one of the most exciting, rapidly growing, and vibrant markets of late. Untouched by COVID-19 precautions (in fact, sales and use grew!) and legalized in more and more states each year, it’s clear to see the future of legal cannabis is bright (even federally). 

For cannabis consumers, it’s a dream to be in the industry they’ve felt a part of long before legalization. And for smart business owners, it’s a time to capitalize on the predicted 11% compound annual growth rate of the legal cannabis industry from 2020 to 2030 and a market that’s expected to rake in $32 billion this year alone. 

Until recently, however, getting your foot into the door of the cannabis industry was a nearly impossible feat. With banks being reluctant to offer traditional loans and financing, a difficult application process, and exorbitant licensing fees, the industry has unusually high (pun intended) barriers to market entry. 

Because the industry is changing so quickly, opportunities for licensing and making products with cannabis are also growing. And we’re proud to say My Green Network has been at the forefront of the change as California’s premier cannabis contract manufacturer and leading cannabis white-label California producer. 

So, if you’re an aspiring cannapreneur, a current business owner looking to diversify their already licensed business, or simply interested in turning your canna dreams into reality, you’re at the right place. Keep reading to learn more about the top 6 benefits, MGN offers Green Leaders, out-of-state manufacturers, and those simply seeking to scale with the growing industry. 

 infused product manufacturer

The Top Six Ways MGN Supports Canna Entrepreneurs

Without further ado, here are the top six ways My Green Network supports canna entrepreneurs in California. 

#1 - Streamlined Market Entry 

Traditional licensing can take up to two years to complete the application process, and get up and running. With My Green Network’s Type-S license and white-label opportunities, you can go from production to sales in less than that. You’ll also save time, money, and effort on start-up costs, locations, and equipment. 

#2 - Co-Manufacturing and White Labeling Opportunities 

We understand that there’s no one-size-fits-all plan for every cannabis brand. That is why we offer a variety of partnerships and memberships so that you can find the one that best fits your unique vision or business. 

As a licensed cannabis contract manufacturer with a “Primary Type-S License,"  My Green Network can allow locally licensed “Type-S Licensees” to use our facility, equipment, and space to produce their own brand or product.

Even more, with our facility and state-of-the-art equipment and processes, MGN also offers private-label or white-label cannabis products to existing or new companies looking to be seen on the shelves, fast. This is an ideal route for current cultivators, manufacturers, distributors, retail stores, or retail delivery services to tap into current trends, offer exclusive launches, and expand their brands’ product category reach. 

#3 - Compliance and Regulatory Support

Another unique trait of the cannabis industry is that it’s highly regulated for consumer safety. Unfortunately, too many new brands don’t take compliance and regulatory requirements seriously until they get a warning, a violation, or even worse, monetary fines, license suspension, or revocation. With so much on the line, compliance needs to be of the utmost importance to avoid bumps in the road; otherwise, your company might not survive hitting them. 

To give you an idea, here are just a few examples of recent compliance woes - 

  • In 2021, an Oregon processor was fined $100,000 for sidestepping packaging rules. 
  • In Nevada, one company’s license was fully suspended in 2021 for METRC and licensing violations. 
  • Even big brands like Curaleaf, are settling over 10 lawsuits, and paying over $100,000 in settlements for labeling mishaps.  

With My Green Network, you have an attorney-founded, detail-oriented team that has the resources and skills to handle complicated requirements while streamlining METRC and labeling, two of the most common areas for compliance issues. 

#4 - Advanced Equipment and Expertise 

When building our facility, we cut no corners or expenses when it came to equipping My Green Network with the best of the best. We wanted to provide this advantage to aspiring entrepreneurs as well as be able to produce quality and quantity efficiently. 

“It's a detail-oriented business, but critical to being successful here is being able to find appropriate contract manufacturing partners that can handle the science and make sure you're in full compliance to the highest level possible,” says John Masis, of En-Tranced, about working with My Green Network

Beyond our fully equipped, state-of-the-art facility, when surveying our members, they reported having the support of an attorney-backed business during licensing, production, and sales as a primary reason for partnering with MGN. 

#5 - Community Advocacy 

We don’t just talk the talk at My Green Network; we’re passionate enough for the industry to walk the walk, too. Our team was recently involved in supporting a new Santa Ana ordinance, which will open up the area’s ability to tap into the thriving market. 

Over the past few years, My Green Network has been working with Santa Ana's city staff and council to make the law happen. The new ordinance will create a healthy environment for shared-use manufacturing and was made possible by the Orange County Advocacy Alliance and Santa Ana cannabis businesses. 

#6 - Retail and Delivery Placement Assistance 

Our MGN Artisan's Corner gives white-label cannabis brands and infused product manufacturers a direct link to placement for retail or delivery. Ask any brand that’s had to make retail or delivery sales themselves—this is a huge advantage for newbies without connections in the industry. 

As for everyone else, out-of-state brands can more seamlessly enter the market with retail and delivery support, and current California brands can seek to expand into the Los Angeles region.

 cannabis manufacturing california

MGN: Cali’s Premier Cannabis Contract Manufacturer

Now that you know more about the different California cannabis license types and the benefits of working with an experienced cannabis contract manufacturer, you’ve gained a whole new perspective on what it takes to get into the cannabis biz. 

With the MGN team supporting your vision or strategy, you can begin your own cannabis brand more quickly, scale an existing company, or become an MSO in a bustling California market. 

So, now what? Schedule a time to tour the My Green Network’s cannabis cloud kitchen, connect with us on LinkedIn, or view our website now for more details and to tap into our collection of Green Leader Testimonials. And, cheers to taking the next step to becoming the next infused product manufacturer California needs to see!  

The Top Benefits of Solventless Extraction – How to Leverage Trends

solventless rosin

As well-established as some legal cannabis markets may seem, it’s easy to forget the industry as a whole is still in its infancy. This is demonstrated by the transformation of concentrates over a few years. 

When concentrates first came out on the market, consumers were simply enthralled with extraction capabilities, in general, and the potency and purity of said extracts. As quickly as concentrates rose in popularity, however, consumers began to wonder how exactly these precious concentrates came to be. 

As consumers collectively realized their concentrates weren’t so “don’t panic, it’s organic” as they thought…and realized they were extracted using harmful, dangerous solvents - the whole product category began to shift. 

Today, solventless rosin and solventless carts, are the most highly sought-after, most elite cannabis goods on the shelves today. For the simple facts that they’re made more naturally, for a nature-loving target audience, and that they taste better, and work better, too. 

So, if you’re considering entering the cannabis industry or looking to shift your strategic goals to capture the largest growing purchasing group, what do you need to know about the state of solventless extracts in the current market? 

Keep reading for the ultimate guide to solventless vs. solvent-based extraction, as they exist in the world of cannabis today. In this guide, we will answer questions like, “What is solventless live rosin?” And, “is solventless better?” As well as covering all of the latest trends, statistics, and benefits of solventless extraction you'll need to know to make your next move. 

The Solventless Meaning

In cannabis, the term "solventless" describes an extraction method that’s done without a solvent. This is compared to solvent-based extractions, which use substances or solvents like hydrocarbons or butane hash oil (AKA BHO), CO2, alcohol, and ethanol to extract the oil from the flower biomass.  

After the solvent-based extraction process is done, the remaining solvent must be removed so that the final product is safe to consume. This is a critical step in the process that distinguishes solvent-based extracts from solventless extracts in terms of manufacturing and consumer safety.

With solventless extraction, water, ice, heat, and pressure are used to extract the precious oil from the cannabis flower by gathering the trichomes. This means consumers are able to enjoy the oil in its purest, finest form. Solventless rosin is now thought to be one of the best products on the market because it most closely matches how the plant's compounds were made in the first place. Particularly amongst cannabis connoisseurs and enthusiasts willing to pay a premium for the best of the best. 

Solventless extracts capture the whole-plant essence of cannabinoids in taste, aroma, and effects. To do so, cultivators harvest their flower and flash-freeze the crop immediately to harness the plant at the peak of its freshness. That is, before drying and curing processes alter their original profile, and with a gentle solventless process that preserves their integrity as much as possible. 

Benefits of Solventless Extraction

Beyond the obvious differences and benefits of solventless extraction and solvent-based extraction for consumers, what are some of the benefits of getting into the solventless rosin business? For potential cannapreneurs, there are a few specific solventless market entry benefits to consider, too, including - 

  • Solventless extraction equipment costs less than complex solvent-based equipment. 
  • Solvent-based manufacturing is also highly dangerous to operate and requires an increased amount of training. 
  • Solventless products are easily white-labeled, privately labeled, or ideal for Type-S licensing and manufacturing, with shared-use facilities. This gives owners and operators ease of access to a facility well-equipped for the process and access to high-quality fresh frozen flower that is already known to be optimal for solventless extraction. 

Last but not least, because consumers consider solventless live rosin, edibles, vape carts, and goods “the best of the best,” they command a higher price point overall. This gives your business a higher return on investment (ROI) and better margins in the end. 

benefits of solventless extraction

Trends and What Lies Ahead for Solventless Extraction

As for sales, what type of numbers are we talking about in regard to growth? Let’s take a look at some of the most recently reported statistics surrounding solventless carts and extracts - 

  • In June 2022, cannabis market analyst firm BDSA released data that showed the solventless vape rosin product category sale spiked 1405% over the year prior. 
  • Furthermore, between June 2021 and June 2022, the category grew on average by 132% each month.
  • In California, solventless products produced by just one brand (Jetty Extracts) make up 55% of the state’s market.

It’s the most recent development in California that has solidified solventless extracts as the future of cannabis. In November, the state announced that solventless extraction methods could now be certified under its OCal Program. The OCal program will offer certifications for products that have been cultivated and manufactured with ‘comparable to organic’ processes and standards that the state already uses for other industries. 

is solventless better

Is solventless better? The final word

To finish, and to answer the straightforward question: is solventless better? We’d answer with a confident yes, from both a consumer and a manufacturing standpoint. More and more cannabis companies are now rolling out their own solventless lines, whether they are already in the industry or not. 

Even more, considering it’s already considered the most top-shelf, natural, and safe extract to consume, there’s no reason to think solventless rosin goods will be going anywhere anytime soon in the eyes of consumers. 

If you want to take advantage of entering the solventless market, at the height of its popularity - learn more about the entrepreneurial opportunities at My Green Network. We offer licensed and non-licensed, current operators, and aspiring dreamers, a wide range of solventless market entry options. 

Schedule a time to tour our state-of-the-art facility today, or explore our website to learn more!