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Cannabis industry to grow further as non-cultivation supply chain services improve

As cannabis growers remain mired in an inability to meet current demand, opportunities for growth abound in other parts of the supply chain.



While the freshly stamped legal cannabis market in Canada was welcomed with open arms, it is unsurprising for many that the current supply is running short, given the massive demands of cannabis users, both medicinal and recreational. In fact, this shortage is hitting medicinal users the hardest as they are deprived of their medicinal cannabis, which can be used for treating a variety of symptoms and problems such as chronic pain.

The situation has been exacerbated by what many people feel are unreasonable regulations. These have further accentuated the inability of cultivators to meet the supply demand. There were several delays in the government’s official legalization of cannabis due to the specific regulations regarding distribution.  Each individual province is in charge of that key aspect of cannabis business.

Ontario is one province still developing its retail chains. Private retail sales are expected to launch in April 2019.

Potential for growth

According to a report by ratings agency DBRS Ltd., the biggest opportunities will arise outside the direct cultivation of cannabis. The supply chain is currently incorporating various levels of business such as distribution, retail, shipment, and even research and development. These are where the major influx of business growth is expected to occur.

In Canada, cannabis businesses must acquire tax stamps that need to be placed on the front of all items. This unique stamp can only be purchased through the only licensed vendor, the Canadian Bank Note Company Ltd. Not only that, but the glue needed to fix these official stamps is only accessible through a lone provider as well, which further complicated matters and threw a wrench into some business plans.

cannabis products
Canada has set strict rules when it comes to cannabis products’ packaging. (Photo by DepositPhotos)

While this certainly caused exasperation on the part of unaware owners, this highlighted the government’s strict regulations regarding cannabis product packaging. Not only do businesses need to adhere to this first layer of regulations, but they are also required to follow all packaging regulations set out by Health Canada. These include providing appropriate labeling and product information as well as using child-resistant packaging to prevent any underage use.

This has made white label services such as White Label Liquid, Inc. (OTCMKTS:WLAB) essential for labeling and packaging services. WLAB provides effective marketing services for both CBD and e-liquid products through its expertise in logo and package designing that will improve branding for a cannabis business looking to build a recognizable image.

WLAB’s quality testing and services can provide a sound foundation for companies looking to get involved in the rising CBD sector that has garnered a strong following due to the non-psychoactive cannabinoid’s medicinal properties. Acquiring the services of a manufacturer which also provides branding dynamics will help cannabis operations thrive while also adhering to all regulations en route to building a capable brand in the sector.

The cannabis industry is projected to see unprecedented growth in the coming years, which is why many investors are exploring the various opportunities it offers. It is worth noting that one does not need to be directly involved in cannabis cultivation and selling of products to be able to benefit from the booming industry. Ancillary businesses could be a better place to start for investors.

(Featured image by DepositPhotos)

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Leah Marie Angelou is an LGBTI activist and equality advocate. She has been a writer for several feminism-focused groups for nearly a decade. Her pieces are often focused on career development and the workplace. She also regularly covers personal and micro-finance, business management and entrepreneurship. Recently she has also focused on covering the promising CBD and hemp industry.