Cannabis is one of the most cultivated, trafficked and used drugs across the globe, and the push for legalization and rising acceptance for medical use are seemingly the primary factors driving the industry’s growth.
The U.S. cannabis market was valued at $10.8 billion last year and is projected to grow at a compound annual growth rate (CAGR) of 14.9% between 2022 and 2023, according to Grand View Research. Analysts from the investment bank Cowen Inc. COWN say the industry could skyrocket to $100 billion by 2023.
The cosmetic, pharmaceutical and food and beverage industries are the key sectors that use cannabis in the U.S. Although not approved by the Food and Drug Administration (FDA), research indicates cannabis may be an effective treatment for chronic pain, which affects 1 in 5 Americans, according to the Centers for Disease Control and Prevention (CDC).
Current State Of The Cannabis Industry In The U.S.
Cannabis is legal for medical use in 37 states and Washington, D.C., and 21 states allow cannabis for recreational purposes — evidence that the negative attitude lawmakers have about cannabis might be changing.
Even consumers’ attitudes toward cannabinoid (CBD) products have changed over the years. A Gallup survey found that 64% of U.S. adults are familiar with CBD and CBD products, and, according to a 2020 SingleCare survey, almost one-third of Americans have used CBD.
New Kid On The Block
When Arizona legalized medical marijuana in 2010, John Hartsell says he was leveraging his relationships at the state capitol to advocate for cannabis legalization.
A few years later, Hartsell and his friend Jeff Scrabeck started DIZPOT, a cannabis packaging distribution company. Since then, DIZPOT has become a global cannabis branding, packaging and technology company with custom solutions for highly regulated markets.
Hartsell and Scrabeck started the business with $45,000, and within the first full month of operation, the business saw a growth of 123% in sales. For the past four years, DIZPOT has increased its sales twofold and is on track to grow by more than double again this year, Hartsell said.
Hartsell attributes the success of the company to its old-school approach of putting customers first. DIZPOT guarantees the quality of its products 100%, which is what the company hopes makes it stand out in the industry alongside big players like Tilray Inc. TLRY and Canopy Growth Corp. CGC.
Shipping Cannabis To Different Area Codes
Not only does DIZPOT produce millions of packages for cannabis and hemp products, its logistics division DIZLOGIC distributes non-plant-touching goods such as grow lights and equipment used by the industry.
DIZLOGIC was created after Hartsell and Scrabeck discovered that many cannabis license holders struggled to find cost-effective and reliable shipping solutions for their packaging because of supply-chain issues.
Because many logistics companies may not understand the intricacies of the cannabis industry, the marijuana business faced major shipping delays when moving packaging across the U.S. and around the world, Hartsell said. In the cannabis industry, compliance issues like misunderstanding labeling regulations can cause shipping delays or even seizure of the product.
With a procurement focus and a satellite office in Shenzhen, China, DIZPOT already laid the groundwork and had the capacity to advance and offer a solution to the industry’s supply-chain issues. DIZLOGIC’s tracking software can track shipments from overseas and update the status of a customer’s order at every step in the process. DIZLOGIC customers also save money by using less-than-container freight-sharing solutions, which the company provides from its China office.
DIZPOT’s customers include Verano Holdings Corp. VRNOF, Curaleaf Holdings Inc. CURA, Belushi’s Farm, Truelieve and Venom Extracts.
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