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What’s New for Cannabis Manufacturers in California

From California cannabis gummies to wholesale concentrates, California is booming in growth for the products it offers. Here are the latest trends affecting cannabis manufacturers in California and what you should be doing to keep up. 

Solventless 

One of the most recent trends in wholesale concentrates in California is solventless. But not just solventless concentrates, like vapes or dabbables, but solventless edibles too. Solventless describes the art of extracting the plant’s resinous oil, and beneficial compounds, without the use of solvents. Which, in the case of cannabis extraction, typically includes butane or ethanol. Instead, temperature and pressure techniques are used to do so, ensuring California cannabis consumers a clean experience. 

Edibles 

Edibles are another market category that continue to evolve for California wholesale cannabis distribution. Now, consumers are seeking much more than just a “buzz” and are seeking more sophisticated or complex edibles to suit their preferences. This includes demand for high-end chocolates, edibles made with all-natural ingredients, and those for particular diets like gluten-free, sugar-free, etc. 

Terpene forward 

Speaking of sophistication, and education, consumers are now learning more about what contributes to cannabis’ unique effects. It’s not just cannabinoids like CBD, and THC, but the plant’s terpenes, too. Hence the rise of terpene forward cannabis products coming from cannabis manufacturers in California. 

With a rich tradition of cultivating high-quality marijuana, California boasts an abundance of boutique growers and artisanal brands that focus on unique strains and organic cultivation methods that can produce flower material high in terpenes for extraction and product manufacturing purposes. 

Sophisticated cannabinoids 

California’s cannabis market is as diverse as its population, catering to a wide range of consumer preferences. A notable trend is the increasing demand for premium, craft cannabis products that offer sophisticated combinations of cannabinoids. This includes a growing interest in  innovative consumption methods, such as edibles, concentrates, and vape cartridges, that offer the same cannabinoid combinations. For instance, the minor cannabinoid CBN, is rising in popularity for its sleep inducing effects. 

The market also reflects the rise of CBD-infused products, which appeal to health-conscious consumers seeking therapeutic benefits without psychoactive effects. 

As sustainability gains prominence, eco-friendly packaging and environmentally conscious cultivation practices are gaining traction. Branding and marketing efforts are becoming increasingly sophisticated, with companies emphasizing product differentiation, brand storytelling, and consumer education to establish their market presence.

White Label Cannabis Benefit #1: Expanded Product Range and Market Reach

Introducing white label products allows brands to diversify their offerings and extend their product range without investing significant time and resources in research and development. By partnering with a reliable white label manufacturer, brands gain access to an array of ready-made products that can be quickly branded and launched in the market.

This enables companies to tap into new consumer segments, satisfy varying customer needs, and capitalize on emerging trends. The ability to offer a comprehensive product line enhances brand perception, positioning the company as a one-stop-shop for customer requirements.

White Label Cannabis Benefit #2: Cost Efficiency and Profitability

White label products present a cost-effective option for brands seeking to optimize their profitability. By leveraging existing product formulations and manufacturing capabilities, brands eliminate the need for extensive product development and production setup costs.

Moreover, scaling can be accomplished that much easier with bulk manufacturing, leading to reduced unit costs and improved profit margins. With lower upfront investment requirements, brands can allocate resources to other critical areas such as marketing and customer acquisition, strengthening their overall business strategy.

White Label Cannabis Benefit #3: Faster Market Entry

In a rapidly evolving market, speed to market can make a significant difference in the success of a product. White label products expedite the process of bringing new offerings to consumers. By leveraging existing manufacturing capabilities, brands can significantly reduce the time required for product development, testing, and production.

This benefit allows brands to stay ahead of competitors, respond swiftly to market demands, and launch products in a timely manner. By capitalizing on market trends and consumer preferences, brands can seize opportunities and generate revenue before the competition catches up.

White Label Cannabis Benefit #4: Brand Flexibility and Customization

White label products offer brands the freedom to customize products according to their unique brand identity and target audience. From packaging design to product features, brands have the flexibility to differentiate their offerings, creating a distinct competitive advantage.

Customization allows brands to tailor products to specific market segments, catering to diverse consumer preferences and requirements. This personalization fosters brand loyalty and strengthens customer relationships, as consumers associate the quality and satisfaction of white label products with the brand itself.

White Label Cannabis Benefit #5: Risk Mitigation and Focus

Developing a new product from scratch involves inherent risks, including uncertain market acceptance and financial investment. White label products mitigate these risks by allowing brands to test market demand and consumer response without significant upfront expenses. Brands can assess the performance of white label products, gather valuable market insights, and adjust their strategies accordingly.

Additionally, brands can focus on crucial areas for success in the cannabis industry, such as marketing, brand management, and customer experience, while relying on trusted white label manufacturers for product development and production. This division of labor allows brands to optimize their operations and allocate resources strategically.

California Edibles Brands – Trends to Target

Like any product category, cannabis products are starting to diversify to target unique consumer preferences. For instance, infused pre-rolls have emerged to offer higher levels of potency. Similarly, now 1G vape carts, and solventless vape carts are trending. As for edibles, here are the latest California cannabis gummies trends, and trends affecting the edible category as a whole. 

Vegan 

Currently, many California cannabis gummies are vegan, naturally, due to the use of pectin vs gelatin. But, as more and more California edibles brands try to mimic candy-like textures (think Haribo!)gelatin is being used more and more. Meaning, vegan consumers will continue to seek out gummies that are gelatin-free. 

Unique flavors

Long gone are the days of cherry, blue raspberry or watermelon, basic flavored gummies, or plain chocolate bars. Today, California edibles brands are expanding their uniqueness with varying flavors infused into their bites. 

High-dose

As consumers’ potency levels increase, so does the dosage they require to reach desired effects. Hence, the emergence of high-dose, one-bite edibles to blast consumers off to all new heights! 

Microdosed

On the flip side, California cannabis gummies and other edibles that are microdosed are increasing in popularity. 

Fast-acting

For consumers using cannabis medically, or looking for fast-acting relief – edibles aren’t ideal, considering they take 45 minutes – 1 hour for effects to fully kick in. Today, California edibles brands are increasing their use of nano-emulsification that’s said to increase onset effect time due to the cannabinoids micro-size promoting fast absorption. 

Nootropics and other herbal blends 

A wide range of herbs, nootropics, and even mushrooms, with healing capabilities are gaining popularity, even outside of the cannabis industry. So, it’s only natural that California cannabis gummies and other edibles are now using the compounds to add a boost of relief. 

Minor cannabinoids

The more consumers learn about minor cannabinoids like CBG, CBN, and THCv the more they’re seeking them out in edibles! These cannabinoids have their own unique effects, just like THC, and can be used to promote a specific type of buzz. 

Solventless

Clean weed is the future! Like all other product categories, solventless edibles are on the rise, too. 

Terpene focused 

Again, as consumers mature and educate themselves on the cannabis plant, they’re learning more about the power of terpenes in addition to cannabinoids. Together, the two compounds create what’s known as the entourage effect – or the phenomenon of the two amplifying one another’s effects.

That’s why more California edibles brands are focusing on specific terpene blends to better induce custom effects. 

Concentrate Types 101

Now that we know more about how cannabis manufacturing companies can differ in concentrate quality, let’s dive deeper into the type of concentrates you or your brand might be interested in manufacturing. 

Live Rosin vs Live Resin

The latest trend (and debate) amongst cannabis consumers and connoisseurs is live rosin and live resin. The similarity between the two? Both are extracted from flower material that was flash frozen upon harvesting.

The difference? Live rosin is made with a solventless extraction process – meaning, it doesn’t require any potentially harmful “solvents” or chemicals to separate the oil from flower material. As for live resin, solvent-based extraction processes with these styles of solvents is used. 

Like we mentioned earlier, currently, live rosin and live resin account for the highest sales in the concentrates’ product category. 

Shatter

Shatter is easy to decipher based on name alone, as it looks like it could break into pieces just like glass. It tends to have a golden and translucent appearance, and is most often made with a hydrocarbon extraction process. 

Budder

Budder or badder is another appropriately named concentrate, as the final consistency is creamy like ‘butter’ or even thick cake ‘batter’. To achieve this consistency, extractors tend to use a whipping process that produces a soft, yet gooey texture.

Naturally, some rosins can be budder-like in consistency, but the concentrate type can be achieved using solventless or solvent-based extraction methods. 

Hash 

Hash, or what’s now more commonly and more specifically coined as ice water hash or bubble hash is a traditional, and old-school form of extracting the good stuff from plant material. More technically, it’s the collection of trichomes (the sticky, mushroom-like shapes you can see on macro-level bud shots!) from a process that uses ice, water, and filter bags.

Today, cannabis manufacturing companies in California are seeing demand for hash for rising trends like infused pre-rolls, like “hash holes”. 

How to Start an Edibles Business in California: The Latest Trends

In general, growth for edible sales has been steady, with a 10.7% to 12.1% rise in total sales from 2021 to 2022. For those close to the industry, it should come as no shock that gummies are leading the charge in sales with a 31% year-over-year growth from 2020 to 2021. But here are some other interesting facts that future canna candy company owners should consider: 

• Chocolate edibles had a -7% decrease in YOY growth from 2020-21. 
• Caramels, chews and taffy had a whopping 32% increase in YOY growth from 2020-21. 
• Brownies and cereal bars had a 2% increase in YOY growth from 2020-21. 

Outside of sales, there are a few consumer trends affecting edible sales and the industry as a whole that should also be taken into consideration. Such as – 

• Generationally, and demographically, female consumers show a strong preference towards edibles. Especially those over 40, who in the US contribute to over half of all edible sales according to Headset data.  
• Consumers are shifting towards “whole plant” or strain-specific edibles, as sophistication and education of the market matures. 
• In alignment with this trend, solventless demand is also on the rise. Solventless refers to the natural extraction of cannabinoids, and terpenes, without the use of harmful chemicals (like ethanol and butane) and with heat, and pressure, instead. Solventless products are at the forefront of the “clean weed” movement that’s expected to continue gaining momentum. 

Furthermore, vegan, low-sugar, and gluten-free edibles are expected to gain traction as more consumers shift their diets in this direction and enter the edibles market.

How to recession proof your business with trends 

Last month, industry leader Weedmaps laid out some of the hottest trends expected to affect this year’s and future cannabis markets among consumers. With the power of knowledge, current or potential cannabis operators can use these trends to their advantage and get ahead of their competitors. So, let’s dive deeper into each one to learn how to do so successfully next. 

The Rosin Definition 

First things first – what’s the true definition of rosin? Rosin is a solventless cannabis concentrate that uses only minimal heat and pressure to extract the oil from trichomes found on cannabis plant material. Trichomes are the resinous glands that make cannabis flower “sticky icky” and contain the plant’s beneficial cannabinoids and terpenes that add to its effects. Think of the solventless process like squeezing a grape, where the juices flow. 

In comparison, other concentrates are extracted using solvent based methods with harmful chemicals like butane, propane, or ethanol. So, you can see just how rosin is on the side of the clean weed movement, using only natural sources (such as heat and pressure) to extract the plant’s precious compounds. 

What is cannabis co-packing?

Cannabis co-packing is when one licensed company helps another (licensed or not) with equipment, production, packaging, or distribution of cannabis products. Of course, co-packing regulations vary from state to state, but here in California, cannabis co-packing can include all of the above and even the co packing and manufacturing of marijuana infused products. 

That means, as long as you find cannabis manufacturing companies that are licensed for the manufacturing, production and distribution of products, you can partner with them for your own branded product. The most common ways to co-pack marijuana infused products with cannabis manufacturing companies is through – 

• White label cannabis products – Just like in other industries, white label marijuana edible manufacturers have a collection of products they produce that other companies can brand as their own. 
• Private label cannabis products – Private label cannabis products are similar to white label cannabis manufacturing, however the brand can have a say in the formula, recipe or manufacturing. For instance, a marijuana edible manufacturer may make a standard solventless gummy that others can brand as a “white label”. If you wanted to make the solventless gummy, micro-dosed, extra-strength, or a seasonal or special flavor – you could make a “private level” version which gives you the benefit of customizing an already successful, and cost-effective product that has streamlined manufacturing for fast launching onto the shelves. 
• Shared manufacturing – Shared manufacturing refers to partnering with a cannabis manufacturing company and using their equipment for the manufacturing of your brand’s individual products. 

Next, let’s get caught up with the most common types of marijuana infused products that cannabis manufacturing companies produce for cannabis co-packing. 

How to Start an Edibles Business – Compliance Edition 

Outside of learning how to formulate recipes and build a business plan, starting an edibles business also requires knowing how to legally operate. In cannabis, it’s not just everyday business regulations you’ll need to adhere to but also those of the DCC. To get you started, here are the five most important factors to consider when setting up your future business. 

#1 – Licensing 

In California, getting a license is the first step to starting an edibles business that is compliant. The state requires you to get a Type N, Type 6, or Type 7 manufacturing license if you want to make edibles in your own facility. However, California also offers a Type S license that allows you to manufacture edibles in a primary Type S licensed facility. 

What’s the difference? Type S licensing has a much faster approval process and costs far less, especially when accounting for start-up location costs. But licensing isn’t the only way to legally sell edibles in compliance with DCC regulations. You can also explore white-label and private label opportunities, where your business won’t require a license but the contract cannabis manufacturing partner you choose will. 

#2 – Location Matters 

Speaking of location, to be fully compliant, you’ll need to understand and follow not only DCC regulations but those of local jurisdictions, too. This will require finding out the local laws and regulations of the city you plan to set up shop in. 

In fact, it’s best to know this before you start scouting locations to make sure that the building you choose is properly zoned for cannabis manufacturing. This is another perk of starting an edibles business with a cannabis contract manufacturing partner or a Type S facility where the primary license holder will have already done so. 

#3 – Compliance SOPs 

From security to storage and everything in between, each step of the cannabis manufacturing process is highly regulated and monitored. One slip-up during an inspection or through monitoring, can put your business at risk for violations, potential fines, and even license suspension. That means you’ll need to include the requirements for California cannabis compliance in your working SOPs and stay in tune with any changes to make revisions when they arise. 

Because regulations change so frequently, this often requires the help of an in-house hire (e.g. compliance manager) devoted to the task, or the hiring of outside help—two costs to consider when starting an edibles business and deciding which route is best for you. 

#4 – METRC

METRC or Marijuana Enforcement Tracking Reporting and Compliance, is the universal system that’s used to track cannabis from seed to sale to prevent loss and uphold community safety. To do so, the system tracks everything from the base oils you use for infusion to the finished product, transport, and sales. 

When starting an edibles business, you’ll need to become well-versed in METRC or, again, partner with a contract cannabis manufacturing partner, or Type S facility, that is. 

#5 – Required testing 

Speaking of safety, it’s no surprise that there are just as many requirements for the testing of cannabis edibles to ensure they’re safe to consume. To hit store shelves, DCC regulations require that all cannabis products are tested for – 

• Cannabinoids 
• Residual solvents and processing chemicals
• Residual pesticides
• Heavy metals
• Microbial impurities
• Mycotoxins
• Moisture content and water activity

The lab must also be ISO-accredited and follow the rules set by California’s cannabis compliance requirements. To further ensure compliance, both you and the lab you choose should be well-versed in how to collect samples from batches for testing to avoid any issues that could raise red flags with regulators. 

#6 – Packaging and labeling 

While we touched upon the basics in our first edition of the How to Start an Edibles Business series, we didn’t get into the full scope of requirements for the actual content. In addition to what you learned about the type of packaging to be used (child-resistant, resealable, etc.), you’ll also need to get a process down for what you need to include on the label. That includes over 20 different subjects like ingredients, net weight, and usage warnings, in addition to requirements like font point size and weight. 

Rather than listing each one individually here, we’ve created a comprehensive guide for tracking edibles’ packaging and labeling requirements in an all-in-one checklist.

What is white label cannabis? 

White label cannabis manufacturing is exactly the practice we described in our introduction. For cannabis, it means one licensed manufacturer manufactures a portfolio of cannabis product types that can be individually branded. The most unique part of cannabis white labeling is that the brand does not own a cannabis license. 

The main disadvantage of white label cannabis is that you’ll have no control over the formulation or production of the product. However, for some entrepreneurs, this could also be an advantage. Especially when you’ve tested the white-label product, know its quality, and can take the stress and efforts of product manufacturing off your plate. 

In fact, even current manufacturers and licensees are seeking out white label producers to manufacture new product lines that align with their quality standards because they don’t necessarily have the expertise or experience in manufacturing themselves. For example, cultivators white-labeling vape carts, or concentrate brands white-labeling edibles. 

Another disadvantage associated with certain white-label cannabis manufacturers is a limit on product types. i.e., some might specialize in white-label cannabis edibles but can’t produce vape carts, concentrates, or pre-rolls. So, if you want to keep growing your brand, it’s best to find a white-label cannabis manufacturer like My Green Network that can offer a wide range of products. 

What is private label cannabis?