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With the portion of retail cannabis products consumed being extracts or derived from extracts expected to grow to nearly 65 percent by 2022, we went to the experts in cannabis extraction, Precision Extraction Solutions, to learn more about this booming sector of the cannabis industry.
We caught up with Precision’s Founder and Chief Technology Officer, Nick Tennant, who has more than a decade of experience building successful businesses in the cannabis industry. Here, he shares insights on why extracts are so popular and where the industry is headed.
What is an extracted cannabis or hemp product?
Tennant: Cannabis extraction is the process of separating the essential oils and desirable compounds from the plant, while leaving behind the undesirable components. For us, this means capturing the cannabinoids and terpenes in the most gentle and efficient manner, as they are very sensitive molecules. The result is a highly concentrated product with no adulterants or undesirable components of the plant, like chlorophyll and fats.
Can you talk about some of the products that can be made with this extract concentrate?
Tennant: Most commonly, we see smokable extracts like “live resin,” “wax,” and “shatter.” Vape pens and edibles are also made exclusively with extracts. When you take into account all of the custom products like supplements, beauty supplies, topicals, drinks, and others, it is easy to see why extracts are dominating the market.
Why do people prefer to consume extracted products?
Tennant: They provide a stable, replicable, and repeatable product for consumers. It ensures that there is little to no variation in product quality or potency due to the isolation and measurement of each molecule. Overall, extracts are a cleaner way to consume these cannabinoids because you are not combusting the crude cellular structure of the plant when smoking cannabis.
As the market progresses, do you see this trend changing over the next few years?
Tennant: You will see more products made with more extracts. The hemp boom has CBD arriving on your local supermarket shelf in common household products. We are just at the beginning of exploring the overall science of cannabinoids and their benefits. Most people are only focused on the production of CBD or THC.
In the coming years, you will see a massive surge in alternative products made with some of the lesser known cannabinoids such as CBC, CBN, CBG, CBE and the like. Each one of these unique molecules, when isolated and extracted from either the cannabis or hemp plant, will play an important role in human health and wellbeing. As legalization progresses, I think you will see more research supporting the benefits of these cannabinoids.
What advice do you have for investors who are looking to get into cannabis extraction?
Tennant: Start slow and quickly scale up, hire a pro to run your lab (don’t try to run it yourself), find the right vendor partner that understands the compliance, process, and design requirements to make your project seamless. Don’t listen to the negative news or get caught up in the hoopla surrounding the public cannabis companies.
Both cannabis and hemp are and will continue to be lucrative markets with explosive growth rates both domestically and globally for the next decade. It is not too late to enter the market. Surround yourself with experts, have a sound plan, obey the fundamentals of business, and there will be a high probability of thriving in the space.
For more information on extracts and related cannabis products, visit PrecisionExtraction.com