Flowchart of Cannabis Industry Sectors

Production

Cannabis Flowers

Concentrates

Distribution

Analysis

Edibles and Topicals

 

Laboratory 
 A business that scientifically analyzes Cannabis products to ensure compliance with safety regulations

Needs

-Chemist to write, develop and validate any methods and procedures used in laboratory analysis

-QAQC manager to document the legal defensibility of all data produced and if necessary defend and present relevant data to auditors and investigators

-Technicians to assist in routine analysis and tasks to maintain the laboratory

 

Challenges

-Developing defensible analytical methods for analysis

-Balancing revenue and costs in the startup phase

-Developing a strong reputation in the industry


Laboratories analyze cannabis products for cannabinoids, terpenes, microbes, residual solvents, pesticides, heavy metals, moisture and other properties requested by clients. In many jurisdictions contaminants are regulated and products must be below the regulatory permissible limits to be legal for sale to a dispensary or patients. Laboratories test flower, extracts, edibles, topicals and other consumable Cannabis products. Laboratories must generate legally defensible data, and maintain a good reputation for accurate results and honest practices, both with industry leaders and government regulators. Due to the high cost of analytical laboratory equipment and associated labor costs, the investment cost in a laboratory is very high. Although laboratories typically see smaller profit margins than other Cannabis businesses, the regulatory nature of their work can offer them a large volume of business from a diverse client base throughout the industry.