In recent years, the California adult-use industry has seen a boom in consumer demand, but surprisingly only a blip in manufacturers.
As of January 2019, there were roughly 5,000 licensed cannabis-based businesses in California. However, there are only about 400 manufacturers with temporary licenses to service the industry, according to the California Department of Health (CDPH). With more businesses diving into the market and the rise in consumer demand, why are there still so few licensed manufacturers?
The issue stems from the rigorous licensing process itself, as well as the unforeseen obstacles manufacturers may face when trying to secure the proper authorizations from state and local municipalities.
When looking to set up a manufacturing operation legally, it is important for operators to consider the licensing process in advance and proactively plan to meet and exceed compliance and safety standards, as well as navigate unforeseen circumstances that may arise during the process.