Grass greener in Colorado with growing pot industry
By: Development Research Partners, Inc.
History was made in November 2012 when Colorado residents voted to amend the state constitution allowing the legal use of recreational marijuana for individuals over 21 years of age.
One year after the passage of recreational marijuana, Colorado serves as the national blueprint for marijuana policy, implementation and regulation. The cannabis industry extends across a wide variety of sectors, ranging from software and food manufacturing to farming and cultivation, creating new, innovative businesses and entrepreneurship opportunities.
Colorado saw an influx of tourists traveling to the state to participate in the newly legal industry. Existing companies modified their services and new companies formed to meet the rising demand for marijuana tourism. There are hotels and transportation services that adapted to the recreational user’s needs, allowing for unrestricted use in their facilities and vehicles. Other companies specialized in tours of grow facilities, dispensaries and testing facilities, offering tourists the full marijuana experience.
The technology and software industry quickly created inventory, application and informational programs to meet the needs of the consumer and producer. The Marijuana Inventory Tracking System assigns individual RFID tags to each marijuana plant in the state, reporting industry-side data and regulatory metrics for enforcement and compliance monitoring.
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There are numerous marijuana apps for personal internet devices. Companies have designed programs that provide consumers with easy access to medical, retail and accessory stores, as well as recipe guides and information on strain selection.
The demand for marijuana edibles, including baked goods, butters, oils, candies and drinks, continued to increase as the year progressed. Many first-time or inexperienced users expressed the desire to try edible and concentrated marijuana products over traditional methods. Because of this shift in consumer preferences, there was an expansion of the food manufacturing market causing edibles manufacturers to relocate to significantly larger facilities.
As these products became more available, the need for proper labeling and potency levels became significant. Marijuana testing facilities that provide manufacturing companies with the drug potency of their products became a necessary component of the industry.
The cannabis industry extends beyond usage for recreational and medicinal purposes. Colorado farmers obtained the state’s first legal hemp seeds, which can be refined into other products, including hemp seed foods, oil, wax, resin, rope, cloth, pulp, paper and fuel. The hemp plant requires little water and no pesticides or herbicides, making it an ideal cash crop for drought-prone areas. Colorado entrepreneurs are beginning to experiment with cultivating and processing the plant, which can be used in thousands of different products.
The rapid expansion of marijuana businesses has fostered growth in other industries. Entrepreneurs are recognizing the benefit of helping marijuana producers build more energy efficient operations. Other industries such as educational and health services have companies that strive to inform individuals how to grow legally and safely, while others work to educate the public and minors about the substance.
SOURCES: Development Research Partners, www.developmentresearch.net • The Huffington Post, https://www.huffingtonpost.com/2012/11/06/amendment-64-passes-in-co_n_2079899.html • Colorado Pot Guide. https://www.coloradopotguide.com/marijuana-activities-in-colorado/ • CNNMoney, https://money.cnn.com/2014/08/22/smallbusiness/marijuana-tourism-colorado/ • Metrc, https://www.metrc.com/ • Google Apps, https://play.google.com/store/search?q=marijuana&c=apps&hl=en • The Denver Post, Consumer demand for pot edibles spurs Denver manufacturing surge, https://www.denverpost.com/business/ci_26347021/consumer-demand-pot-edibles-spurs-denver-manufacturing-surge • The Cannabist, https://www.thecannabist.co/2014/12/26/colorado-first-legal-hemp-crop/ • Hemp Industries Association, https://www.thehia.org/facts.html • The Denver Business Journal, https://www.bizjournals.com/denver/blog/earth_to_power/2015/01/growing-pot-is-hardly-green-is-it-time-for-leed.html?page=all
