Cannabis concentrates are taking over the cannabis industry which makes setting up an extraction lab an ever more attractive proposition for commercial producers. While solvent based concentrates like BHO and CO2 vape oils saw initial success in America’s “Green Rush”, recently, the market has turned in favor of a cleaner, healthier, and more cost effective method, solventless extraction. So, for businesses weighing up the desirability and profitability of entering the cannabis concentrate game, here’s why choosing the solventless route is the most beneficial.
Rosin Demand: Booming Popularity
It’s no secret that solventless products are exploding in popularity within the concentrate community. According to MJBiz Daily, solventless rosin products have seen more than 200% increase in demand over the last few years, while solvent based extract sales have remained stagnant. Much of this shift can be attributed to a more health conscious populace who see chemical based products as the less healthy option, and that seems to have made pure natural solventless products more attractive at the dispensary.
Solventless Extraction Equipment: Low Cost of Entry
Another major advantage of going solventless is the much lower cost of entry compared to a solvent based lab. A professional solventless extraction facility can be set up with a 4 or 5 figure sum, whereas a BHO or CO2 equivalent will easily run into 6 figures as an initial outlay. Simply put, a solventless extraction lab costs a fraction of that of a solvent based setup that requires purchasing and installing heavy industrial equipment.
Multiple SKU’s From a Single Production Facility
The versatility of solventless products also offers up a tantalizing opportunity, and that’s the ability to produce a large range of different products using the same production facility. Whether it be bubble hash, badders, waxes, shatters or jams, you can easily produce a wide range of SKU’s for sale of varying grades of quality, all from a single solventless extraction lab.
Health and Safety Compliance
One more advantage for solventless comes from regulatory compliance. Solvent based labs suffer from much stricter regulation due to their potentially dangerous nature. That means more stringent health and safety requirements for training and operation of high pressure petro chemical processing and storage equipment. Furthermore, zoning restrictions are likely to come into play meaning you will be limited in where you can physically set up a solvent based lab. With solventless however, you’ll have a much easier time and more freedom to select a location and train your staff thanks to its inherent safety.
Fewer Overheads Means Improved Margins
Ultimately, the lower initial outlay and operational costs of a solventless extraction lab adds up to fewer overheads, and when you add that to the rising demand and price of solventless products you also end up with improved margins. Currently, premium solventless rosin is sold for as much as $100 a gram in dispensaries, and when you factor in the wide range of other solventless products such as hash and edibles that you can produce for sale, the potential is clear to see. It’s simpler, more cost effective, and produces clean, natural products that are in high demand.