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New Frontier Data: Home Grow Ushers in a New Era of Opportunity

New Frontier Data: Home Grow Ushers in a New Era of Opportunity

One of the biggest opportunities that’s come with cannabis legalization has been the home grow market. South African entrepreneurs should be aware of the millions of rand of potential spend in this sector, if the example of the United States is anything to go by.

New Frontier Data

10 August 2022 at 12:00:00

The market for home growing cannabis in the United States is taking off as legalization sweeps across the land. New Frontier Data released its report The U.S. Cannabis Homegrow Market: Motivations, Processes, and Outcomes, which casts light on a well-established but little-understood aspect of the cannabis economy, the homegrowers—consumers who cultivate their own cannabis—and the growth trajectory of this significant market.

The first-of-its-kind report found that the expansion of legal cannabis in the U.S. has ushered in a new era of opportunity for home cultivation, with participation rates higher in fully legal markets (7%) than in medical (5%) or illicit (4%) markets. This suggests that as more states transition to fully legal markets, more adults will take up homegrowing for the first time, and retail spending on supplies could reach nearly $4B by 2030. The scale of the homegrow market’s output underscores the important additive role that residential cultivation plays in the national cannabis supply, supplementing the commercial legal and illicit producers.

“The DEA’s recent decision to treat marijuana seeds as hemp could open up the market for national cannabis seed distribution in a substantial way,” noted Gary Allen, CEO of New Frontier Data. “This significant policy shift could also increase the breadth of genetics available to homegrowers, making it possible to produce strains that are not commercially available.”

Key report findings include:

  • Homegrowers  across the U.S. are estimated to produce 11 million pounds of dried flower      in 2022—more than 13 times Colorado’s legal flower market—increasing to      over 15 million pounds by 2030.

  • Three million (6%) of cannabis consumers grow their own flower in the U.S. and      is forecast to reach nearly 4.1 million by 2030.

  • With 65% of homegrowers either married or in a relationship, and 46% having children under the age of 18, messaging showing cannabis can be safely and responsibly grown at home should be emphasized as the sector works to expand.

  • With more than half of homegrowers earning over $50,000/year, and a quarter earning over $100,000, premium suppliers will find opportunities to serve more affluent growers.

  • Cannabis consumers who grow at home are significantly more likely to have a “green thumb” (71% have outside edible gardens) and 53% purchase supplies from a local hardware or garden store, suggesting new opportunities for  mainstream suppliers.

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