Manufacturing is the process of turning raw cannabis into finished goods. Manufacturing subsectors are differentiated by the type of process the cannabis is destined for, either extraction or infusion.
Extraction is the process of dividing the cannabis plant material into parts that contain different chemicals. Infusion is the process of incorporating either cannabis extract or plant material in with another substance. Most jurisdictions only require manufacturers handling marijuana to obtain a license.
Manufacturing is considered the second stage of the cannabis supply chain for marijuana, followed by packaging or consumer sales. Manufacturers that handle hemp are usually not required to have a commercial cannabis license but may require a hemp license. When manufacturing hemp for pharmaceutical use, it will generally enter the pharmaceutical supply chain at this point. When manufacturing hemp for nutraceutical use, it will generally enter the food supply chain at this point.
Extraction
Extraction is the process of separating cannabinoids from cannabis plant material using chemical solvents or mechanical methods. The principal function of an extractor is to create concentrates generally focusing on THC, CBD, and terpene. Concentrates are chemically stable and allow a precise measurement of the chemical makeup. Concentrates are used directly by the end user, in the production of infused products, and in manufacturing pharmaceuticals.
Infusion
Infusion is the act of incorporating either cannabis extracts or plant material into another product. In most jurisdictions, infusers require a license for THC infusions that create a cannabis product. The principal function of an infuser is to create a cannabis product compliant with cannabis regulatory requirements. Cannabis products are those that include THC and come in many forms such as edibles, topicals, tinctures, extracts, vape cartridges, and capsules.