The growth of the cannabis industry is pretty rewarding for cultivators or retailers. However, they are not the only ones growing in the industry.
To your surprise, several ancillary businesses are flourishing along with the cannabis trade.
Wondering what these businesses are?
Relax!
Here's a list of 5 ancillary businesses supporting the cannabis trade. (And, growing along.)
Packaging And Labelling
With the rate at which the number of cannabis products is being introduced into the market, the need for new and innovative packaging is imminent.
For instance, we have buds, extracts, infused edibles, cosmetics, and whatnot available in the market. And every product has specific packaging and labeling needs.
The packaging used for buds is not required for cosmetics, and vice versa. Perhaps this is true with all the products. However, the good news is that as the number of product categories increases, the packaging and labeling technology also evolves.
Packaging and labeling can also include extraction services, like PureCannalabs offer extraction lab design services. Outsourcing such services can make life easier and promote savings.
Software And Technology
Speaking of technology, it is noteworthy that the cannabis industry is still in its infancy. And, as such, several areas can be automated and benefit from technology.
For instance, logistics and cannabis tracking is one part of the supply chain that can use software and technology. Similarly, in-store inventory management is another aspect where retailers can benefit from software and technology.
Perhaps integrating software and technology can help improve the overall operations within the industry. And can also help improve the profitability of the trade.
Marketing And Business Services
The increasing number of businesses in the cannabis trade means more competition. Besides, the regulatory limitations for the cannabis trade further add to the challenges.
For example, advertising bans on cannabis and its products make it difficult for dispensaries to reach their customers. Apart from this, the differences in legal outlook from state to state also limit the scalability of dispensaries.
A significant number of dispensaries outsource their business services to stay economically competitive in the market. For instance, lab testing, marketing, and even branding and labeling tasks are generally outsourced.
Consumption Equipment
The greater number of products also brings in good news for companies that manufacture consumption equipment.
For example, bongs, vaporizers, atomizers, extractors or presses, paper rolls, pipes, and many more equipment are frequently used for cannabis consumption.
Besides, new and better designs of consumption equipment are always in demand. Consumers desire unique experiences during their consumption sessions. For this reason, it is of no surprise that lots of wholesale smoke shop distributors are busy supplying the many dispensaries around the country so their customers can get the best smoking equipment.
Staffing Solutions
Lastly, a growing and expanding industry also creates several employment opportunities, which in turn helps the industry to grow further.
Perhaps staffing solutions are the most important and also mostly ignored ancillary businesses within the cannabis trade.
There are opportunities at every stage from cultivation to harvesting, distribution, and retailing. Besides, the ancillary businesses also need specialized and skilled staff.
The Bottomline
None of the businesses listed above need any specialized license to begin with. And yet, they all are highly promising as long as the cannabis industry is flourishing.
Perhaps not all businesses in the cannabis trade are selling cannabis products. Many are supporting the ones in business to make their sales. And are benefitting on the sidelines.