According to new data published in the 2016 Marijuana Business Factbook, profit margins for concentrates and infused products in the cannabis sector hover around 32% - significantly higher than those typically realized by alcohol, soft drinks, and cigarettes.
"Demand for these forms of cannabis are booming, and consumers are often willing to pay a pretty penny for them," according to the Marijuana Business Daily. "Edibles in particular are growing in popularity, particularly in recreational marijuana markets, as are concentrates used in vape pens."
As with all things in the marijuana industry, profit margins vary depending on your location: in states like California, which has both relatively few medical marijuana regulations and the biggest medical cannabis market in the country – "infused products companies typically have higher profit margins, as they aren't subject to the costs and operational hurdles that come with heavy regulations," according to MBD. In more heavily-regulated Colorado, the profit margins are typically lower.
In short - there's lots of room for infused product makers to grow their businesses across state lines - and, given the profit margins, it's little wonder entrepreneurs are flocking to the industry.