"2023 was the 2nd consecutive year, following the peak of '21, where cultivation facility development and expansion remained relatively slow throughout North America. Now, as we enter 2024 Q2, we are seeing an uptick in new project starts and are anticipating a 25% bump in both retrofit/expansions as well as new construction," says Curtis Dadian, Director of Business Development at Pipp Horticulture. "With nearly a decade of large-scale legal cannabis cultivation facility design & operations behind us now, there is a tremendous pool of talent helping to advance the industry. Talent that has been shaped and molded through these initial developmental years that any new industry experiences. During this time, cultivators, operators, and suppliers have honed their skills, listened to their audience, broadened their willingness to remain open to new and better ways, and accepted the fact that this business will remain competitive and push us all to get better and aim higher."
Curtis adds that consumer spending throughout the US, with now 24 states legal for recreational use, is growing at a healthy 14% per year and is expected to exceed 70 billion dollars by 2028. 
The Pipp Horticulture team at this year's ICBC Berlin. Pictured here: Anders Peterson, Tom French, and Brian Tatrow
Challenges
As a capital equipment supplier within the cannabis market, Pipp recognizes the pressures faced by producers, its customers. "They are continually being asked to produce at lower price points while increasing the quality and variety of their product. We want to provide products and solutions that will aid our customers in this mission. To do this requires constant refinement and innovation, which is both fun and challenging. We're constantly challenging ourselves to seek out problems being faced during the cultivation and processing phases and develop solutions to these problems. It's why we're here and the reason we wake up each morning!" Curtis says.
"Industry-wide, familiar challenges will continue, including regulatory compliance, banking, taxation, supply chain, quality control, market saturation & competition, public stigma, and R&D. While industry leaders are intelligently navigating these challenges, they will continue to present obstacles for many operators for some time," Curtis says. "Successful organizations and brands will create specific strategies for each of these critical areas of interest while surveying the industry and keeping a close eye on what's working, what's not, and what's yet to come."
Future developments
When it comes to the future, Curtis anticipates healthy growth throughout North America as operators take the valuable lessons of the past 7 to 10 years into the next phase of the industry. "More sophisticated facilities, more experienced operators & growers, and a more refined customer base, all working together to push the industry forward. Legalization will continue to expand, opening new markets, consolidation with larger cannabis operators acquiring smaller players to gain access to new markets, technologies, and distribution, and a shift towards craft cannabis products offering unique strains and higher quality will begin to pick up momentum."
"This rich learning ground will serve as a valuable reference point for developing international markets such as Europe, which has taken a very methodical approach to legalization, watching and learning from our experiences and working very hard to raise the bar as they transition to a cannabis-legal community. Export and import regulations will have a significant impact on the growth of this international landscape," Curtis says.
Opportunities
According to Curtis, opportunities will be found both domestically and internationally, but competition will be increased, and participants will be more discerning than ever. "Producers and suppliers will all need to increase their value to the market(s) they serve if they are going to survive and ultimately thrive in these competitive times. Because this industry is expanding and evolving at such a rapid pace, there will be a multitude of opportunities for all who are nimble and able to adjust and adapt. Legalization and market expansion, product innovation, wellness applications, new international markets, technological advancements, sustainability, and more will all help to create opportunities for individuals, companies, and investors to pursue. This is absolutely an incredible time for the cannabis industry and all who are able and willing to find their place within," Curtis concludes.
For more information:
Pipp Horticulture
Email:
info@pipphorticulture.com
www.pipphorticulture.com