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Cannabis Manufacturing vs. Cannabis Production: Which is Best for Your Business?

cannabis production business plan

In a world where cannabis is no longer just a buzzword but a booming industry, the opportunities for entrepreneurs are extremely high (pun intended). So if you want a piece of this ever-growing industry, you’ve come to the right place! 

In this article, we will take an in-depth look at the differences between manufacturing and producing cannabis products to help you determine what may be the right move for your business. 

However, before delving into the comparison, let’s take a quick look at the current status of the cannabis industry to gain a better understanding of the arena we’re playing in. So, grab your favorite strain, sit back, and let’s dive into the ins and outs of this budding industry!

Understanding the Cannabis Industry

With the legalization of cannabis for medical and recreational use in many places, the cannabis industry has seen a surge in growth and innovation, creating thousands of opportunities for entrepreneurs everywhere! But what exactly is this industry about?

The cannabis industry encompasses the sale and distribution of cannabis products, including cannabinoids like THC or CBD, which are used for medicinal purposes, recreational consumption, or industrial applications

When it comes to having a business in this industry, there are two main routes you can take to supply your business with cannabis products: manufacturing or production. So, to help you determine which may best suit your needs, we’ll delve into how they’re different. 

However, before comparing the pros and cons that come with each route, it’s important to gain a better understanding of what production and manufacturing are and what their respective processes are, so let’s get into it!

cannabis manufacturing jobs
cannabis manufacturing jobs

What is Cannabis Production?

Cannabis production refers to the cultivation of cannabis plants, which involves the careful nurturing and harvesting of the plants to ensure they reach their full potential in terms of quality and yield.

When choosing to produce your own cannabis products, keep in mind that the investment will be significantly higher given that you will need a production plant, trained employees, licenses and permissions, and all of the equipment necessary to grow your plants. 

So, to further help you determine if production is the way to go, let’s take a look at what it entails and what you will need in order to set up a successful cannabis production line that will meet the regulatory requirements.

The Process of Cannabis Production

Cannabis production is a meticulous process that involves cultivating the plant from seed to harvest. So let’s get a deeper look into what it entails to run a successful cannabis production line to get high-quality products.

  1. It all begins with selecting the right strain of cannabis and researching its needs to ensure optimal growing conditions such as lighting, humidity, and temperature.
  2. When they get the equipment necessary to grow the strain selected, the seeding process begins, where the seeds are planted under the right conditions. 
  3. Once the seeds are germinated, the nurturing process begins, which includes monitoring soil nutrients, watering schedules, and pest control to ensure healthy development.
  4. The buds are then harvested at the peak of their potency, where they are trimmed and dried to be turned into different products like oils, pre-rolls, or edibles.

When getting into cannabis production, keep in mind that quality control is paramount throughout every step of this process to guarantee consistency in potency, flavor, and safety standards. 

Each step requires precision and expertise to produce high-quality cannabis products for consumers’ enjoyment. So we recommend consulting a professional before making the decision to get into the cannabis production game.

If you don’t want to go through the hassle of setting up a production line or you don’t have the capital to acquire the necessary equipment, let’s take a look at the most popular alternative: cannabis manufacturing.

cannabis manufacturing process
cannabis manufacturing process

What is Cannabis Manufacturing?

Cannabis manufacturing involves outsourcing various cannabis products like pre-rolls, flowers, edibles, and concentrates from an already existing cannabis production line, which aims to help companies cut down on expenses. 

Additionally, it often includes packaging, labeling, and distribution processes to bring the final products to market efficiently, helping you meet consumer demand for innovative cannabis options beyond traditional flower products.

However, manufacturing involves a thorough process to ensure the high quality of the products in their wholesale store. So let’s take an in-depth look into the process of cannabis manufacturing. 

The Process of Cannabis Manufacturing

When it comes to the process of cannabis manufacturing, there are several key steps involved. So let’s take a look into how cannabis manufacturing is done in order to determine if this is the way to go for your business.

  1. The businesses research different cannabis manufacturing companies by searching for online services, attending cannabis events, and networking with their colleagues.
  2. Once they have the initial selection, they interview the providers and come to an arrangement with the winner to determine the products they want, the prices, and the turn-around times that are expected. 
  3. Businesses must also determine the quality control measures set in place for their production line to meet the regulatory standards for potency and purity. 
  4. When the production line is done, they consult the manufacturer’s design team to select the packaging and labeling for their products
  5. During the design phase, they must also include the product’s contents and usage instructions on the label by consulting a legal expert on what they need to include. 
  6. When the products have been labeled and packaged, some manufacturers also offer distribution services, sending them to all of the in-store locations for their business. 

After manufacturing your cannabis products, you will be ready to sell the end product to your client, freeing up your budget and time so you can designate it for other areas of your cannabis business. 

Now that we understand what cannabis production and manufacturing are and their respective processes, let’s get into their main advantages and disadvantages to gain a better understanding of which is better for your company.

cannabis production jobs
cannabis production jobs

Cannabis Manufacturing vs. Cannabis Production: The Pros and Cons

When it comes to the cannabis industry, understanding the differences between cannabis manufacturing and cannabis production is crucial for businesses looking to thrive in this competitive market. So let’s take a look at a few pros and cons that come with each:

Obtention MethodProsCons
Cannabis ManufacturingThe consistency in the quality of the product reduces the risk of unexpected side effects or inconsistencies in potency.It has a higher price tag than producing your own products, but it’s cheaper in the long run, given it eliminates production costs. 
They follow strict regulations and testing protocols to ensure their products meet regulatory standards and are safe for consumption. They may sell their products through specific channels or locations, making it difficult for consumers to access their desired products easily.
They offer a wide range of products to choose from, including edibles, tinctures, topicals, pre-rolls, flowers, and concentrates that are ready to be sold. There may be limited options for customization based on individual preferences or customer preferences, limiting your creativity and innovation capabilities. 
Cannabis Production It allows you to have ultimate control over the ingredients and processes used to ensure high-quality end products.The cannabis industry is heavily regulated, so you may need to navigate complex laws and obtain various permits.
It requires a high initial investment, but it can save you money compared to purchasing pre-made products from dispensaries.It can be a labor-intensive process that requires significant time and dedication to ensure quality results and the satisfaction of your clients.
It offers the freedom to experiment with different strains, flavors, and potency levels to create unique and personalized items tailored to your customer’s preferences.It requires investing in specialized equipment and training personnel, which can be costly upfront and may require regular maintenance expenses down the road, leading to higher company costs.

Once we have taken a look at the main advantages and disadvantages that come with cannabis manufacturing and cannabis production, it will be up to you to determine which route you want to take. 

So, if you’re still unsure about which option may be the best for your business, let’s take a look at some aspects to consider when it comes to choosing the right production method for your cannabis company.

cannabis production manager
cannabis production manager

The 4 Best Tips on Choosing the Right Method for Your Business

When it comes to choosing between cannabis manufacturing and cannabis production for your business, there are several key factors to consider. So let’s get into some aspects to consider when making this decision: 

  1. Assess the scale of your operation and the resources you have available to determine your budget, given that setting up a production line is very expensive.
  2. Consider the level of control you want over the final product, given that manufacturing allows for less customization and control.
  3. Consider the current demand for your cannabis products, given that production lines can take months to deliver high-quality products and manufacturers are faster.
  4. Evaluate the regulatory laws in your region and do your research on the requirements to obtain your products through both methods to ensure compliance. 

Weigh all these factors carefully before deciding on the best method for your cannabis business, given that it could be a make or break decision. Now let’s look at the legal considerations to keep in mind to further help you make your decision.

cannabis production and management
cannabis production and management

The 4 Vital Legal Considerations for Cannabis Businesses

Navigating the legal landscape is crucial for any cannabis business to thrive, given that compliance with state and federal regulations is non-negotiable in this highly regulated industry. So let’s take a look at some vital considerations to keep in mind:

  1. Make sure to obtain the necessary licenses and permits, given that without proper documentation, a company risks facing hefty fines or even closure.
  2. Stay up-to-date on evolving laws and regulations by acquiring a qualified legal team that specializes in this field.
  3. Consider the product labeling and packaging requirements to maintain transparency with consumers and authorities alike.
  4. Research the employment laws specific to the cannabis industry to maintain a compliant workforce and mitigate potential legal issues down the line.

If you obtain your license, stay up-to-date on the current regulations, and research the regulatory standards for your products and employees, you will be sure to be on your way to success.

cannabis production by country
cannabis production by country

Conclusion

When deciding between cannabis manufacturing or producing your cannabis products, it’s vital to consider the specific needs of your operation. While both processes deliver, understanding the differences between each process can help you make your decision.

To choose the right method for your business, consider factors such as scalability, resources required, regulatory compliance, market demand for different products, and overall business goals. 

Whether you opt for cannabis manufacturing or production will depend on various factors unique to your business. By carefully evaluating these aspects and staying informed about industry trends, you can position your company for success in this rapidly evolving sector.