Jessica McKeil is a cannabis writer at Agrify
Cannabis industry pits hydrocarbon extraction against solventless extraction. On social media and in online forums, there is a debate that goes both ways. The global cannabis concentrates market is expected to reach $1.7 billion in 2022, according to Market and Research. It’s evident that no one extraction technology will drive this growth.
Instead, producers can use a variety extraction techniques including solvent-based or solvent-free to navigate a constantly changing landscape and pivot when necessary in response to market demands and consumer demand.
It makes more sense to combine both extraction technologies as part of a holistic strategy, rather than deciding which is better.
Limitations to a Single Extraction Technique
According BDSAspan size=”font weight: 400 ;”>,, the three most important factors that influence consumer buying decisions are THC content and taste. span style=”font-weight: 400;”>According to /span>a href=”https://azrdracostorage.blob.core.windows.net/bdsafiles/71e7600b-f3cf-4b6c-a822-fc2566c66ddd2/BDSA.Win%20New%20and%20Retain%20Existing%20Shoppers%20by%20by%20B%20by%20and%20by%20by%20by%20and%20by%20by%20by%20by%20by%20by%20by%20by%20by%20by%20 by%20 by%20by%20by%20by%20by%20by%20and%20by%20by%20by%20by%20by%20.pdf.pdf.pdf………………………….” /span>/span>/span>/span>/span>/a>/
Due to the often contradictory consumer demands and other industry influences, it is impossible to choose a single extraction technique that can be applied across all markets. This is especially true if you are aiming for long-term growth.
A newly emerging market may prefer low-cost extractions with high THC, such as hydrocarbon extraction ;”>. A mature market might demand a better flavor, and be willing to pay more for solventless extracts. Even these assumptions are not without nuances. If you invest in one extraction technology, it will limit your capacity to grow and adapt in a constantly evolving market.
Look at the limitations in hydrocarbon extraction. The initial barrier to entry is the high capital costs for equipment and booths as well as the need for highly-skilled staff. Hydrocarbon extraction, particularly in the newer markets, is a highly competitive industry. Although you can process any biomass, it is more difficult to differentiate your product by quality in order to achieve a premium price.
Solventless extraction is less expensive upfront and eliminates the requirement for highly-skilled engineers, architects and even fire marshall inspections required for hydrocarbon installations. Solventless extraction is only effective with high-quality flowers and a small range of genetics. Solventless extractors are limited in their ability to recover costs if harvest quality does not meet expectations. Not all markets are able to bear the higher price of rosin.
Harmony of Solventless Hydrocarbon
Cannabis is a commodity that has a consistent upward trend. The fluctuations in each product category, and within each regulatory market, are more difficult to predict. Consumer tastes, taxation and regulatory burdens, and biomass quality remain highly variable, no matter which state we examine.
Dual extraction of cannabis using hydrocarbon and solventless technologies offers flexibility and a way to protect production from market volatility.
First, by having two extraction options available, brands can make decisions in real time based on biomass availability and whether price, THC or flavor are driving sales.
Solventless is the best option if high-quality flowers are available and a market is willing to pay a premium for them. According to BDSA Retail sales tracking, “Rosin’s share of dabbable dollars has grown significantly in mature market (CA, CO OR, MI, IL),” from 8% in Jan 2021 up to 16% by October 2022.
Illinois is a prime example of a market that’s not ready for premium extractions at high prices. Despite the relative maturity of the market and recent statistics from BDSA the high prices for flowers mean that rosin concentrations are out of reach to most consumers. They cost around $120 per gram. It may be more profitable to sell quantity than premium quality in this situation. Hydrocarbon is a good alternative.
Hydrocarbons are also an effective strategy to deal with biomass of lower quality. Hydrocarbon extraction combined with distillation can be an effective crop-insurance method, regardless of the input quality, as long as the extraction process is well controlled.
Hydrocarbon extraction allows for more finished products than solventless extraction. You can create a wide range of products including waxes and resins as well as sauces. Plus, hydrocarbon-extracted crude oil is more easily formulated into consumer packaged goods like edibles and vape carts.
A proven strategy is to build production around a dual extraction strategy that combines hydrocarbon and solventless techniques. Leading multi-state operators in the industry, such as Curaleaf and Trulieve have expanded their SKU portfolios by offering both hydrocarbons and solventless products. They have been able to adjust to the changing tastes of consumers, market conditions and other influences no matter where they are located.
Jessica McKeil, a cannabis journalist for Agrify in British Columbia (Canada), is based there. Her expertise in cannabis technology, scientific breakthroughs and extraction led her to be published by Cannabis & Tech Today as well as Terpenes and Testing and Analytical Cannabis. She is the founder and head writer of Sea to Sky Content which provides content, strategy and marketing to some of the biggest brands in the cannabis industry.
Agrify’s extraction brands Precision Extraction, and PurePressure provide producers with extraction technologies that help them create products their customers will love. They help operators develop flexible and nimble strategies for extraction, from planning to equipment, installation, and training.
Precision Extraction provides the best in class hydrocarbon extraction equipment, ethanol extracting, lab equipment, Cascade vacuum ovens, extraction labs, pods and design services to suit any size operation. PurePressure offers solventless extraction from industry-leading rosin presses and hash washing equipment to consumables.
Precision Extraction, PurePressure by Agrify and Agrify together offer all the options necessary to navigate the volatile cannabis markets, regardless of the size of the operator. For more information visit https://precisionextraction.com/contact-us/ or https://gopurepressure.com/pages/contact-us.
The post Members Blog: Hydrocarbon or Solventless? first appeared on National Cannabis Industry Association.