As Cannabis Industry Matures, the High-End Craft Cultivation Market is Set for Growth
By Michael O’Connor – Benzinga – September 13, 2021 8:37 am
By some estimates, the global cannabis market is projected to reach a total size of over $97.35 billion by 2026. This undoubtedly represents a significant growth opportunity across the board for existing and burgeoning cannabis companies. One area that could prove to be an especially interesting one to watch is the high-quality, small-batch craft cultivation sector.
Many people may know some of the most prominent players in the overall cannabis industry, such as Tilray Inc (TLRY). Aurora Cannabis Inc (ACB) and Canopy Growth Corp (CGC). But for the targeted market of high-end and craft cannabis products, there are a limited number of players within a sector that seems underserved, despite rapidly increasing demand, and accordingly not quite as mature and established yet. To cultivate a truly premium and organically grown product, a very involved sequence of steps must be completed that go above and beyond the basic level of cannabis production. Providing a high-end product also requires companies to dedicate more manual resources and effort into their growing operations, innovations, branding, and marketing to offer a genuinely unique cannabis experience
More Luxury Leaves?
One example of a company that is all-in on the targeted growth and development of the high-end craft cannabis sector is LiveWire Ergogenics, Inc. (LVVV). LiveWire is focused on acquiring and managing special purpose real estate properties to discover and develop high-end organic cannabinoid products specifically for the health and wellness industry. While the State of California is in the process of establishing a cannabis appellation program to support establishing clear quality criteria, LiveWire, via its affiliate company Estrella River Farms, is already following the typical organic guidelines and will apply for Appellation of Origin certification as soon both programs have been established and are open for participation.
To further establish clear differentiation via exceptional product quality and branding, LiveWire, and its affiliate company Estrella River Farms has created the “Estate Grown Weedery™” category based on the iconic Estrella Ranch, located in the rolling hills of Paso Robles, California. LiveWire intends to develop the property into a vertically integrated craft growing operation using artisanal production methods, with the capability of providing a unique consumer experience similar to a winery, hence the unique “Weedery” title.
Advanced product offerings like that of the Estrella Ranch project could become popular, especially in areas like California, which already have significant consumer adoption of cannabis products, along with the rapidly increasing demand for high-end craft products than other areas.
For the cannabis industry as a whole, innovation and change is par for the course. In particular, the high-end craft sector could prove to be highly successful in the coming years as consumers and producers continue to experience its maturation and growth along with the medical and recreational cannabis market.
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