Chart: Diversification enhances profitability of marijuana product manufacturers – to an extent

Makers of cannabis products are more likely to turn a profit if they offer merchandise across multiple categories – but that profitability declines if a manufacturer produces too many types of goods.

For companies offering products across a single category, 27% described their business as profitable compared with roughly 50% of companies offering products across multiple categories, according to the 2019 Marijuana Business Factbook.

Increases in the proportion of profitable businesses occurred as the number of products grew from one to 15, but the percentage of profitable businesses producing more than 15 products fell.

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