Cannabis Processing: Industry Vertical Infographic

by Mar 9, 2020, 16:55 PM

Companies in this category process cannabis and hemp from cultivators into finished products. This could include oils, concentrates, and various consumer-packaged goods.

What is cannabis processing?

Companies in this category process cannabis and hemp from cultivators into finished products. This could include oils, concentrates, and various consumer-packaged goods.

Companies in this vertical hold or have applied for processing licences, which vary depending on the scale of operations and the location of the facility.

Subsegments

  • Harvesting
  • Extraction and purification
  • Packaging
  • Food and beverage processing
  • Laboratory testing services

The cannabis processing investment opportunity

Processors can play a crucial role in moving cannabis and hemp products to market—from edibles to pharmaceuticals. They can also play a key role in fostering the horizontal integration that we think is necessary for the cannabis industry to mature.

Several factors may sharpen a processor’s competitive edge. We think successful processors will attempt to: maximize their extraction capacity, find ways to convert the most plant material into finished products, prioritize quick turnaround times, and hone their technical expertise.

Key statistics for cannabis processing

  • US$5.3B - est. global cannabis extract market size in 20181
  • C$1.6B - est. Canadian market size for cannabis extract-based products in 20192

RIV Capital portfolio companies in the vertical


1Source: Grand View Research - “Cannabis Extract Market Size, Share & Trends Analysis Report” (2019)
2Source: Deloitte - “Nurturing New Growth - Canada Gets Ready for Cannabis 2.0” (2019)

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