We’re not the first to tell you that a recession could be looming. But considering cannabis could be considered what’s known as a “sin” industry, with those forking out the cash to partake despite economic conditions, many think cannabis to be “recession proof.”
Of course, if you’re in the industry now, or aspiring to be, you might be wondering: is now the time to expand or start a new brand? It’s true, there’s an overabundance of California cannabis brands already, but cannabis white labeling can help you launch more cost-effectively and while targeting trends, too.
So, here, we did a deep dive on everything current cannabis operators and aspiring cannapreneurs need to know about the current state of the California cannabis market size, how to successfully expand your product collection, and how to start a cannabis business in California profitably despite the economic forecast.
Keep reading to learn everything you need to know about how cannabis white labeling can help support your new or growing brand, even in a recession.
Is cannabis recession-proof?
Even though the weed vs. alcohol debate may be tiring, the close correlation does give the cannabis industry hope for a potential recession. Experts agree across the board, and the numbers show that the alcohol industry has not been negatively impacted by previous recessions and has continued steady, consistent growth during economic downturns.
Regardless, industry experts also agree there are a few tips to keep in mind for current or future cannabis operators looking ahead at a potential economic downturn, including –
- Consider outsourcing parts of your business (i.e. manufacturing!).
- Add to or change the products and services you offer by focusing on products that are in demand and diversifying accordingly.
On that note, let’s take a look at what’s in-demand among consumers by looking at the most recent trends forecast.
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.
“Consumer sophistication will drive product differentiation and branding”
As the industry matures, so do its consumers. Think about it: every industry, from food to makeup, has low-cost options, luxury options, and even specialized niche options. Cannabis is no exception, as we begin to see increased demand for more sophisticated products as consumers become more educated and aware of the plant’s scientific benefits.
Even more, the stigmatization of cannabis is slowly lessening over time, driving a demand for more unique products and branding that new consumers can connect with. Because the balance between manufacturing and marketing new products can be overwhelming for cannabis operators, the white label or private label cannabis route is ideal.
Why? Because it allows the brand to focus on fine-tuning their brand messaging, while leaving the intricate manufacturing to the pros.
“More cannabinoids and plant actives will enter the market”
Along with the trend of consumers becoming more educated, is their increased knowledge of other cannabinoids outside of just THC and CBD, and “plant actives” like terpenes, and even herbal ingredients like nootropics.
For instance, recently cannabis products with heightened levels of minor cannabinoids like CBG and CBN have become popular for their unique effects and benefits. Especially for sleep, pain, and appetite management.
To capitalize on this trend, established brands can partner with private label cannabis manufacturers to quickly, and effectively launch new product SKUs. In contrast, new brands can launch with this knowledge and the marketing and branding support to spread the word and raise awareness.
“Infused pre-rolls and beverages will make a splash”
Since sales of infused pre-rolls have been going up steadily over the last year, 2023 is expected to be the “year of the infused pre-roll.” This also indicates a maturation among consumers, who are looking for specialized products that are more potent as tolerances rise, too.
But beginners beware: manufacturing infused pre-rolls is no simple feat. It takes planning and precision to make sure that all the parts work together to make a smooth experience that doesn’t go out or side-burn.
So, like we mentioned earlier, it can pay off to outsource infused pre-roll manufacturing to private label cannabis producers to ensure you launch with a product that consumers will come back for.
“Consumers will want clean, safe, and sustainable weed more than ever”
Again, like trends in big industries like makeup and food, there’s a rising demand for clean and sustainable weed. So what’s at the top of the list as one of the cleanest and purest ways to consume? Solventless edibles, vape carts, and concentrates.
Along with industry maturation, consumers are also becoming more aware of how the cannabis plant is grown, processed, and extracted, and are increasingly seeking products that help them avoid the harmful chemicals used for solvent-based goods. That means, looking towards a potential recession, cannabis operators should be considering how they can diversify their product collection with solventless options.
Capitalize on sales with cannabis white labeling
Now that you know more about the trends to target for product expansion or market entry – what’s the most cost-effective and speedy method to do so? More and more established brands, and start-ups are turning to California cannabis white label opportunities for both cost and time benefits.
By finding a reputable cannabis co-manufacturer, you’ll gain the benefits of:
- Launching onto the market with a high-quality product from an experienced producer.
- Avoiding the lengthy and costly California cannabis license type application process.
- Gaining regulatory and compliance support from manufacturing, to transporting and distributing.
Even better? With white label and private label cannabis, marijuana selling licenses California-wise aren’t required. Explore white-label cannabis products as your fast pass onto California retail shelves with Orange County’s premier cannabis white-label manufacturer, My Green Network.
At MyGN, it’s our mission to elevate the cannabis industry by inspiring its future green leaders and supporting growth among its current players. This includes using our state-of-the-art shared kitchens and making the best white-label and private-label cannabis in the state.