In recent years, the cannabis industry has seen an unprecedented surge in global acceptance, legalization, and commercialization. With the growing acceptance and awareness of cannabis for medical, and recreational purposes, the demand for effective cultivation methods has surged.
This trend had a major impact on the entire indoor gardening industry. Because indoor gardening has become a solution to overcome the limitations of outdoor gardening, it allows growers to have greater control over the growing environment.
LED grow lights have become a game changer for the industry, revolutionizing the way cannabis is grown indoors.
Growers recognize that LED cannabis lighting provides a reliable, efficient lighting solution that meets the unique needs of cannabis plants.
The demand for LED grow lights in the cannabis industry is closely related to the rapid growth of the cannabis market itself.
Read on as we delve into how does cannabis driving the cannabis lighting market. By examining these factors, we aim to gain a comprehensive understanding of how cannabis trends intersect with the demand for LED grow lights, ultimately shaping the future of cannabis cultivation.
Trends in Cannabis Industry
Cannabis, once considered a taboo substance, is now gaining acceptance worldwide for medical and recreational purposes.
The legalization of marijuana is taking place in various ways in different regions. Several countries, including Canada, Uruguay, and several U.S. states, have fully legalized marijuana for medical and recreational use.
Many other countries and states have taken a more progressive approach to legalizing marijuana for medical purposes. This gradual shift has created a favorable environment for cannabis businesses to flourish.
The size of the legal cannabis market is expected to reach billions of dollars in the coming years. In the United States, the legal marijuana market is estimated to be worth more than $17 billion in 2020.
As more states legalize cannabis, the global legal cannabis market is expected to be worth $90 billion by 2026.
The boom in cannabis also creates jobs, such as from cannabis cultivation and processing to retail operations and ancillary services.
In areas where marijuana has been legalized, job growth and economic revitalization have been observed, new businesses have emerged, and tax revenues have supported the local economy.
Consumers are seeking safe and regulated products, and this demand is driving the growth of licensed cannabis producers and dispensaries.
Growing awareness of the potential therapeutic benefits of cannabis has contributed to the growing popularity of medical marijuana among medical patients.
Cannabis Lighting Market Trends
Key market trends in the cannabis lighting market: LED lights are expected to account for a significant share and the benefits associated with LED lighting are expected to contribute to market growth.
Increased patient interest in the medical use of cannabis and a surge in demand for high-quality cannabis products is a trend that has had a significant impact on the entire indoor horticulture industry. One particular area of growth is the LED cannabis lighting market.
Cannabis plants require a specific light spectrum and intensity level in order to produce better-quality buds. LED grow lights are becoming increasingly popular among cannabis growers due to their energy efficiency, customizable spectrum, and other advantages.
As a result, many plant light manufacturers have developed specialized cannabis lighting solutions specifically for the cannabis industry. Auxgrow has done just that. It is deep into its 13th year in the grow lighting field.
Moreover, the progress in the second legalization phase of cannabis indicates that the expected commercialization of cannabis products such as edibles, extracts, and topical products is expected to increase the cultivation of cannabis.
This in turn will drive the cannabis lighting market during the development forecast period (2023 – 2028).
As consumers become more environmentally conscious, there is a growing demand for sustainable and eco-friendly products across all industries. Cannabis growers are looking for energy-efficient and environmentally friendly lighting solutions.
LED grow lights are an ideal solution. Because they use much less energy and generate less heat than traditional lighting solutions, they reduce the need for additional cooling systems.
How Cannabis Trends Impact Pricing and Availability of LED Grow Lights
As more growers turn to indoor growing, the demand for specialized equipment and supplies, including LED grow lights, is increasing. This increased demand has influenced changes in pricing and supply in the LED grow light market.
1. Increase in Demand:
As more and more growers look to use LED cannabis lighting to grow their cannabis plants, their demand for this product is increasing. This is driving up the price of LED cannabis lighting.
Rising prices. As the demand for LED cannabis lighting increases, so do its prices. This is because manufacturers are able to charge higher prices for products that are in high demand.
Reduced supply. The increase in demand has also led to a reduction in the supply of certain types of LED plant lights. This is because manufacturers cannot keep up with the demand for such products.
2. Competition Among Manufacturers
As the LED hemp lighting market becomes more competitive, a new group of manufacturers is entering the market.
Competition among plant light companies is a positive development for the LED hemp lighting industry. It promotes lower prices, innovation, and more options for growers.
Pricing. Increased competition in the hemp lighting industry has made it more likely that manufacturers will offer lower prices to attract customers. This could lead to lower prices for LED cannabis lighting, making it more affordable for growers to use this type of lighting.
Innovation. Competition, on the other hand, drives innovation. Because manufacturers are constantly looking for ways to improve their products and set themselves apart from the competition.
Auxgrow, for example, is constantly looking for ways to improve its products and has investments in the future of LED plant lighting.
Our newly developed grow light controller is compatible with most of the plant lights on the market and enables commercial growers to control their plants more in an intelligent way.
Grower choice. Increased competition has given growers more options when it comes to LED cannabis lighting. Growers are more likely to find products that fit their needs and budget.
3. Changes in Supply and Demand
Changes in supply and demand can lead to price fluctuations throughout the year, with prices tending to rise during the peak cannabis growing season.
Changes in supply and demand can also affect the quality of LED cannabis lighting.
When the supply of LED cannabis lighting increases, manufacturers may invest less in research and development. This may lead to a decrease in the quality of LED cannabis lighting.
On the other hand, when the demand for LED cannabis lighting increases, manufacturers may also be more inclined to invest in research and development. It may enhance the quality of LED cannabis lighting to improve. The same is true for Auxgrow.
4. Supply Issues
The increased demand for LED grow lights may put additional pressure on the supply chain and lead to shortages or delays in deliveries from plant light suppliers.
Price increases. When manufacturers have supply issues, it can lead to higher prices for LED hemp lighting. This is because there is less supply of available products, which drives up demand and prices.
Reduced availability. Supply issues may also lead to a reduction in the availability of LED hemp-based lighting products.
5. The Rise of Vertical Farming
The rise of vertical farming is a positive development for the LED plant light industry. The price of LED plant lights is also affected by the rise of vertical farming.
Increased demand. As more growers adopt vertical farming, the demand for LED plant lights is also increasing. We know that LED plant lights are the most efficient and effective way to grow crops in vertical spaces.
New product development. The rise of vertical farming has also led to new product development in the LED plant light industry. Horticultural plant light manufacturers, like Auxgrow are developing new LED cannabis lighting specifically designed for vertical farming.
6. Energy Efficiency
According to a report by Technavio, the demand for energy-efficient lighting solutions in the global LED grow light market is expected to increase due to the cannabis industry’s growing focus on sustainability and energy efficiency.
The report shows that LED grow lights are more energy efficient than traditional lighting solutions, making them ideal for growers who want to reduce their environmental impact.
Energy-efficient LED plant lights are usually more expensive than less efficient LED plant lights. This is because they use more advanced technology and materials.
However, the upfront cost of energy-efficient LED plant lights is often offset by savings in energy costs.
7. Customized Spectrum
Cannabis has specific spectral requirements at different stages of growth. Manufacturers may offer LED grow lights specifically tailored to the cannabis industry, which may affect pricing and availability.
Price. Custom LED plant lights are usually more expensive than the standard. Because they require the use of specific wavelengths of light that are conducive to plant growth.
Demand. Custom LED plant lights are in high demand among commercial growers who are looking for ways to improve the quality and yield of their crops.
Auxgrow is an experienced LED grow light manufacturer, please feel free to contact us if you need to inquire about custom plant lights.
8. Consumer Preferences
Cannabis grower preferences can affect pricing and demand for LED plant lights in many ways.
- Type of plant. The type of plants consumers want to grow will influence the type of LED plant lights they need. Indica and Sativa, the two different varieties require different growing conditions.
- Size of the plant. The size of the cannabis that consumers want to grow will also affect the type of LED grow light they need. For example, Northern Lights and Sour Diesel require different types or sizes of cannabis lighting.
- Light required by plants. The amount of light plants needs will also affect the type of LED plant light they need. OG Kush and Blueberry require different types of LED grow lights.
- Price of the fixture. The price of the light also affects demand. If the price is reasonable, consumers are more likely to buy LED plant lights to replace traditional HPS fixtures.
- Quality of the fixture. The quality will affect demand. Consumers are more likely to buy LED plant lights if they are high quality and durable.
Auxgrow insights that some users prefer to try DIY plant light arrangement shapes.
The Auxgrow GB15 is a free combination of LED light bars, users can adjust the arrangement of plant lights according to their own growing room.
9. Marijuana legalization
The legalization of cannabis in more and more countries is creating a new market for cannabis products, which is driving the demand for cannabis cultivation. This in turn is fueling the demand for LED plant lights.
Countries that have legalized recreational marijuana:
Canada, Georgia, Malta, Mexico, South Africa, Thailand, Uruguay, 11 states in the United States, The Australian Capital Territory, and The District of Columbia.
Countries that have legalized medical marijuana:
Argentina, Australia, Barbados, Brazil, Chile, Colombia, Costa, Rica, Croatia, Cyprus, Czech, Republic, Denmark, Ecuador, Finland, Germany, Greece, Ireland, Israel, Italy, Jamaica, Lebanon, Luxembourg, Malawi, Malta, Mexico, the Netherlands, NewZealand, NorthMacedonia, Norway, Panama, Peru, Poland, Portugal, Rwanda, Saint Vincent and the Grenadines, San Marino, South Africa, Spain, SriLanka, Switzerland, Thailand, the United, Kingdom, Uruguay, Vanuatu, Zambia, Zimbabwe, 38 states in the United States.
10. Regulatory Impact
State or regional regulations can affect the type of cannabis lighting allowed. Some regions may mandate the use of LED energy-efficient lighting.
These regulations may affect the availability and pricing of LED grow lights in different markets.
- EU: The EU has a directive that requires all new light sources sold in the EU to be energy efficient by 2021. This means that most new light sources will be LED lights.
- United States: There are many states and cities in the United States that have mandatory LED lighting requirements. For example, California requires all new streetlights to be LED by 2025.
- China: There are many provinces and cities in China that have mandatory LED lighting requirements. For example, Guangdong Province requires all new commercial buildings to be LED lighting by 2020.
- India: There are many states in India that have mandatory LED lighting requirements. For example, Maharashtra requires all new government buildings to have LED lighting by 2022.
These are just a few examples of countries or regions that mandate the use of LED energy-efficient lighting.
As LED lighting becomes more affordable and efficient, it is likely that more countries and regions will adopt mandatory LED lighting requirements.
Because LED lighting is more energy efficient than incandescent and fluorescent lighting. It can save businesses and governments money on energy costs.
11. Economic Impact
Inflation and currency fluctuations can affect the pricing and availability of LED grow lights.
Inflation. When inflation rises, the cost of producing LED grow lights also rises. This is because the cost of materials, labor, and transportation all increase. As a result, LED grow lights become more expensive for consumers.
Currency fluctuations. When currency values fluctuate, the cost of importing LED grow lights from other countries will also fluctuate.
This is because the price of LED grow lights is usually quoted in US dollars. If the dollar depreciates, then LED grow lights will become more expensive for consumers in countries with appreciating currencies.
12. International Trade and Procurement:
The global nature of the cannabis industry means that LED grow lights can come from a variety of countries. They are usually shipped from overseas.
Factors such as transportation costs, tariffs, trade agreements, and international supply chains can affect pricing and availability.
Overall, the growing demand for cannabis is having a significant impact on the pricing and availability of LED grow lights.
While increased competition among suppliers of plant lights may lead to lower prices, changes in supply and demand may also lead to shortages and higher prices. Pricing and availability of LED cannabis lighting will likely continue to be affected by changing market conditions.
The North American market is expected to lead the global market, followed by Europe and Asia Pacific. The growth of the cannabis market is driven by the increasing legalization of cannabis, the growing popularity of vertical farming, and the increasing demand for high-quality cannabis products.
The global LED grow light market is expected to reach $14.27 billion by 2030, growing at a compound annual growth rate (CAGR) of 14.8% from 2022 to 2030.
If you are a grow shop operator or vertical farming investor and want to be the first to succeed in indoor farming, Auxgrow is here to support you every step of the way.