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.
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.
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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