America took one step closer to federal cannabis legalization in late November last year. A few days before Thanksgiving, the cannabis community had something to be majorly grateful for when the U.S. House Judiciary Committee approved a cannabis reform bill. Passed by a 24-10 vote, Marijuana Opportunity Reinvestment and Expungement (MORE) Act would provide the industry with accessibility similar to what the hemp market received via the 2018 Farm Bill.
The advancement of the MORE Act does have its opposition as it moves forward. The measure must pass the full House of Representatives and then move onto the Senate before reaching President Trump’s desk for final approval. It is believed that the Senate would pose a nearly insurmountable roadblock across the aisle. Instead, Republican Senators are rumored to be in support of the bipartisan STATES Act, which would protect state-legal cannabis programs.
The two acts represent just a couple of the legislation moving through Congress in recent months. The once-taboo subject of cannabis is now seen by many as the next big thing. Not only can it boost business, but if implemented correctly, it grants access to patients while potentially easing some of the pains of the war on drugs.
From a business perspective, the legalization of cannabis poses an immense opportunity to become a staple of American culture, like the beer and spirits world currently serves as. With rosin and solventless concentrates, you may just have the eventual golden opportunity.
A Matter of Time
Predicting when legalization would occur has been a common point of discussion for some time now, even before the green rush of the past few years. In recent years, with state-by-state legalization coming to reality, forecasting that momentous day has shrunk from decades to years.
How many years remains uncertain. Some believe that we could see movement as early as the lead up to the 2020 elections. Others think it could take one or two more election cycles. Most experts put their guesses at under 10 years — which is something to say for the progress cannabis advocates have made.
Federal legalization will come in just a matter of time. When it does come to fruition, the landscape of cannabis will change dramatically. The siloed and varied state laws would be gone, replaced with a uniform code that would almost assuredly include interstate shipping of products. When this happens, solventless concentrates should serve as the top-shelf choice for connoisseurs.
The Parallels Between Cannabis and Craft Beer and Premium Alcohol
Cannabis is likely to mirror alcohol in several ways once it is legalized in the United States. We believe that demand and consumer interest should fall onto a similar parallel as craft beer and premium alcohol. The only significant difference being the faster production and sale times for cannabis due to its shorter shelf life (for now; it’s likely technological innovations will change that soon).
With that in mind, data from the beer and alcohol industry indicates that premium products, like solventless rosin could see significant gains for its producers. While beer sales declined 1% in 2018, craft beer grew 4% during the period, reaching 13.2% of the American beer market by volume. Craft sales totaled $27.6 billion, marking a 7% sale increase. Today, craft beer comprises 24% of America’s beer market.
Spirits show an even more promising market, where in February 2019 the market reported its ninth straight year of record sales. 2018 also saw sales increase by 5.1%, totaling $27.5 billion. In total, spirits now occupy 37.4% of the total U.S. alcoholic beverage market.
Distilled Spirits Council President and CEO Chris Swonger credited the continued growth to demonstrate how the beverages are preferred over beer and wine. Swonger pointed out the demand was particularly true with millennials. In a press release announcing the news, Swonger said, “The spirits sector is benefiting from millennials who demand diverse and authentic experiences, and desire innovative and higher-end products.”
While alcohol can only offer crude parallels to the complexities of the cannabis product universe, there is still a lot that the cannabis industry can learn from the more mature markets of wine, beer, and spirits. That demand for innovative, higher-end products is just why we believe that rosin and solventless concentrates are going to become a leader in the American cannabis sector once legalization arrives.
Solventless Concentrates are Cannabis’s Premium Choice
The beer industry is declining to a certain degree. In January 2019, Economist Bart Watson wrote, “This overall weakness of beer volume, coupled with increased access to cannabis, seems to be the primary source of worry motivating theories about a link between the two products.” Whether cannabis continues to aid in declining beer sales remains to be seen. What is certain is that consumers demand cannabis products, and increasingly, special ones that contain new and exciting experiences. This demand is likely to continue to trend upward once adult use legalization occurs across the United States.
As Chris Swonger mentioned about spirits, millennials demand higher-end, innovative options. The same applies to cannabis. However, with a newly legalized market, the high level of interest is not relegated to a certain age bracket. Instead, consumer interest runs the gamut of age groups. What this is really showing us however is that solventless concentrates, such as premium rosins and the various products that can be made from rosin, are almost certainly going to be sought after by consumers who want a high end cannabis experience.
Think about it, young people may be more inclined to dab or consume other potent types of products. They once began with BHO extracts. Still, with the availability of solventless products on the rise, that demand has already started to change. On the other hand, consider seniors and medical patients who look for varying dosages in the forms of topicals, edibles, vape cartridges and much more, all of which can be made with solventless rosin.
By providing this range of consumers a product such as rosin, your brand lets the market know it has a versatile product that was made without any chemicals. These special touches to the production process help increase its quality and prestige. Those are two aspects that most craft consumers seek out. They want the top quality product while having something worth writing home about.
Like the craft beer and premium spirits market, cannabis is already doing that. A quick look on Instagram and similar sites reveal people going bonkers over certain cannabis products. Once legalized, it isn’t out of reach to assume cannabis consumers will form lines just as long, if not longer, than those you see at small craft breweries when a new limited edition batch comes up for sale.
If you’re ready to get into the business, or are looking to add a truly premium brand building SKU lineup to your existing product mix, contact our experts at PureCannalabs to learn how we can help grow your bottom line with solventless extracts.