Cannacurio #65: Year-End 2022 Manufacturing Leaderboards

Be the first to know when new content like this is available!

Subscribe to our newsletter to receive notifications of new posts, local news and industry insights.

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form.

Following our most recent year-end 2022 reviews of growers, dispensaries and retailers, we now look at cannabis manufacturing licenses.

background

We classify a license as a producer if it fits the following description: The license is for processing (manufacturing) marijuana-infused products such as edibles or concentrates, but does not include cultivation or retail sale to customers (flower, product out).

Cannabis manufacturing licenses are granted more slowly than cultivation or retail licenses. However, they are important assets for companies because the products are often strong brands.

These brands, unlike licensed assets, can cross state borders and will no doubt help established companies thrive and build market share. They are also useful for the licensee as these facilities can be used for white label production – thus increasing the value of the asset.

It is difficult to estimate the exact amount of white label manufacturing being undertaken by cannabis companies as this information is not widely reported or tracked. However, many cannabis companies offer white label manufacturing services, where they manufacture and package products for other companies to sell under their own brand. This can include a variety of products such as edibles, topicals, and concentrates.

The use of white label manufacturing allows smaller companies to enter the market and establish a brand, while providing established companies with the opportunity to expand their product lines.

Important Findings

  • Oklahoma led the statewide in newly issued manufacturing licenses with 655 (47%).
  • The top five states accounted for 85% of the 1,398 new licenses.
  • nationwide total Manufacturing licenses grew just 4.3% from 2021.

As we see in other activities, most of the new licenses were issued by a handful of states. Five states granted 85% of all new licenses: Oklahoma, California, New Mexico, Michigan and Washington. The chart below shows states that have issued at least 10 new manufacturing licenses in the past year. The table shows all states.

2022 Cannabis Manufacturing Licenses Granted by State2022 new cannabis manufacturing licenses by year-end

leaderboards

Below is the ranking comparing year-end 2020, 2021 and 2022. An interesting point is that while Oklahoma issued all of these new licenses, the total number of active licenses has actually decreased. Much variety!

2022 cannabis manufacturing licenses by year-end by states

Conclusion

Some consider manufacturing to be one of the sweet spots in the cannabis value chain. You are protected from agricultural commercialization, although there are challenges with slotting fees and other placement issues.

Manufacturers have the opportunity to build a brand. This makes it an attractive part of the value chain for transplanted talent from spirits, packaged goods and pharmaceuticals because it seems familiar.

Manufacturers are also beginning to use their marketing resources to directly interact with customers. This long game can strengthen customer loyalty and help consumers in many states buy their favorite brands.

author

Ed Keating is co-founder of Cannabiz Media and oversees the company’s data research and government relations efforts. He has spent his career working with and advising information companies on compliance issues. Ed has led product, marketing and sales while overseeing complex, multi-jurisdictional product lines in the securities, corporate, UCC, security, environmental and human resources markets.

At Cannabiz Media, Ed enjoys the challenge of working with regulators around the world as he and his team gather corporate, financial and licensing information to track the people, products and companies in the cannabis economy.

Ed graduated from Hamilton College and received his MBA from the Kellogg School at Northwestern University.

Cannabiz Media customers can stay up to date on these and other new licenses through our newsletter, notification and reporting modules. Subscribe to our newsletter to get these weekly reports in your inbox. Or you can schedule a demo to learn more about how to access the Cannabiz media license database yourself to dig deeper into this data.

Cannacurio is a weekly column from Cannabiz Media featuring insights from the most comprehensive licensing data platform. Check out Cannacurio’s posts and podcasts for the latest updates and information.

Post a comment:

Your email address will not be published. Required fields are marked *