5 Trends Successful Cannabis Cultivators See as Top Priorities in 2023
/The cannabis industry is struggling right now, but things will turn around. Cultivators just need to be able to hang on through the tough times we’re experiencing. The truth is this industry is too valuable to the economy to fail.
The 2022 MJBiz Factbook predicted that the U.S. cannabis industry will have a total economic of nearly $158 billion by 2026. But that’s not all! The data also says that for every $10 people spend at legal cannabis dispensaries and retailers, $18 is injected into the economy, and much of that money is injected into local economies.
The legal cannabis industry will survive and thrive, and cultivators who recognize the trends that create distinct opportunities to gain market share will be the most successful in the future. Over the past 12 months, several of these trends have risen to the top of the priority list as we head into 2023. With that said, let’s take a closer look at five of these must-know trends.
1. Doing More with Less
Oversupply and falling prices continue to be problems for cannabis cultivators in different areas across the United States. Combined with a possible recession, many cultivators are looking for ways to cut costs and do more with less.
Labor and inputs are two key areas that are typically considered when it’s time to cut costs. However, your cost-cutting decisions should be as strategic as possible. That means you should look deeper than just surface cost-cutting opportunities such as reducing headcount or using cheaper amendments.
One way you can do more with less strategically is by using the right grow media – one that is more forgiving, more consistent, and may require fewer amendments and less water to deliver better quality plants and higher yields.
You’ll get all of those benefits and more if you use bio365 grow media. In fact, you’ll get five measurable benefits:
Lower costs
Reduce risk
Enhance quality
Boost yield
Improved bottom-line
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2. Moving Toward Organic
Reports show consumer demand for clean weed is growing, and in the future, more cannabis cultivators will need to shift all or some of their operations to organic. That means all inputs will need to be organic. As a result of this growing demand, many cultivators are prioritizing organic growing in 2023.
When it comes to growing cannabis that can be considered organic, everything starts with the substrate the plants are grown in. The problem is, the substrate sold by most manufacturers is not organic and could never be certified as organic.
For example, Grodan’s Rockwool is not organic because it’s made through a synthetic chemical process. OMRI, a third-party nonprofit organization that is accredited to ISO 17065 standards by the USDA Quality Assessment Division, says in its OMRI Generic Materials List, “Rockwool is synthetic and thus prohibited for use in organic agriculture.”
Therefore, cultivators who grow in Rockwool substrate will not be able to sell their cannabis as “organic” and won’t be able to seize the opportunity that the growing demand for clean weed presents. The only way to grow organic cannabis is by using grow media that enables organic production of cannabis, such as bio365’s clean living soil.
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3. Capturing and Using Data
The cannabis growers who will win in 2023 and beyond are the ones who aren’t just trying to cut costs and get decent results. The successful cultivators will be those who have a mindset of getting better every cycle, and they use data to do it.
According to research by Forrester Consulting, data-driven companies across all industries are 58% more likely to exceed their revenue goals than organizations that are not data-driven. In 2023, successful cannabis cultivators will prioritize collecting reliable, usable data and using it to make decisions in every aspect of business operations.
For example, did you know that the amount of microbial biomass in your substrate can have a direct effect on your crops and revenue? Do you know how much air porosity is in your substrate? This metric is critical because it has a significant effect on your plant health and yields.
Most cultivators track data throughout the grow cycle, but in 2023, successful cultivators will prioritize data everywhere, including in their choice of grow media. They’ll track everything from how much fertilizer they’re really using and which amendments are actually working to how much waste can be cut.
Cultivators can find all kinds of cost savings by tracking crop cycles more closely in 2023 and using the data to assess strategies and identify the one that delivers the highest quality and best results.
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4. Leveraging Technology
If you’re not already using technology to automate processes and track critical metrics across your grow operation, then you should prioritize technology integration in 2023. And if you’re using technology already, then you should look for more ways to leverage it in the future.
Most people think of software, automated watering, and other types of platforms and programs when they think of cultivation technology, but technology encompasses all of the tools used in your facility for everything from business processes to grow room tasks.
For example, the soil experts at bio365 highly recommend that growers use a chlorophyll meter to ensure they’re not over- or under-feeding their cannabis plants. For a small $200-$300 investment, this tool can deliver cost savings on fertilizer and labor that add up quickly.
In addition, the bio365 soil experts recommend that cannabis cultivators use a tensiometer to improve plant health and yields. This $100 tool measures the actual soil water tension—this indicates the effort required by root systems to extract water from the soil—and is much more effective than other tools to ensure you’re not over- or under-watering.
For larger cultivators, growers need to shift to sensor technology that plugs into facility control centers. Environmental control systems from companies like TrolMaster, Argus, Aroya, urban-gro, and others can help you automate processes and track critical data so you can quickly make the best decisions.
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5. Growing for Consumers
The cannabis industry is on the brink of a very big change. Whitney Economics reported in its 2022 U.S. Cannabis Supply Report that the total amount of legal and illegal cannabis cultivated in the United States will exceed 48.8 million pounds in 2022, and that’s a problem.
According to the report, the total legal cultivation capacity in the U.S. is currently greater than the entire U.S. demand if 100% is used. Based on the data, it’s not surprising that cultivators are having trouble selling their crops and prices are falling.
With that said, it’s time to prepare for the future when supply and demand return to alignment. When that happens, the successful cultivators will be the ones that can differentiate their products and brands from the competition. They’ll offer something that consumers want, not just what they’re capable of growing.
In other words, successful cultivators in the future will grow for consumers – based on their current needs, wants, and preferences. For example, New Frontier Data’s From Doctor to Dispensary: A Complete Picture of Medical Cannabis Consumers report was released this month, and it offers insights into what medical patients want from cannabis brands. Cultivators that grow for these wants will be uniquely positioned to succeed in the future because they’ll be selling what people actually want to buy.
The report shows significantly more medical cannabis consumers believe minor cannabinoids and terpenes are important when making a purchase than recreational consumers (55% of medical consumers vs. 39% of adult-use consumers). Similarly, medical consumers are more likely to seek out products with specific terpene and minor cannabinoid profiles than recreational consumers (70% of medical consumers vs. 58% of adult-use consumers).
Based on the data, both medical and adult-use cannabis consumers are looking for cannabis with specific cannabinoid and terpene profiles. Cultivators who grow for these demands will have a measurable competitive advantage.
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Key Takeaways about Cannabis Cultivation Trends for 2023
Cannabis growers should prioritize the five trends discussed above as part of their 2023 strategies. Successful cannabis cultivators in the future are already testing and planning to integrate these trends into their processes.
The team at bio365 can help you conduct trials and tests and choose the best grow media to reach your goals in 2023 and beyond. Contact us to get started!