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Annual Report Highlights Dominant Adoption of LEDs and Positive Yield Impact in Cannabis Lighting Market

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LED Adoption Among Commercial Cannabis Growers Continues to Rise, According to "State of the Cannabis Lighting Market" Report

Fluence, a global provider of energy-efficient LED lighting solutions for commercial cannabis and food production, has released the eighth-annual "State of the Cannabis Lighting Market" report. The report, developed in collaboration with Cannabis Business Times, highlights the sustained high rate of LED adoption among commercial cannabis growers. The study reveals that for the second consecutive year, at least 70% of participants from commercial indoor or greenhouse operations used LEDs for propagation, vegetation, or flowering. The survey also shows that 66% of commercial growers reported a yield of more than 50 grams per square foot of canopy under LED technology, indicating an increase from the previous year. Fluence remains committed to supporting cannabis cultivators and collaborating with industry authorities to provide critical insights into market trends. The report emphasizes growers' increasing focus on crop quality as a key differentiator in an oversaturated and consolidating market. The majority of respondents listed "crop quality" as the most important factor for using LEDs in cannabis production, followed by "yield." The report also highlights the importance of rebates as a cost-saving tool for growers, with Fluence's rebate program having saved growers over $26 million to date. The findings of the report illustrate the industry's continuous evolution and adaptation to market realities. LED adoption has significantly increased over the years, demonstrating the industry's commitment to innovative lighting technology and strategies. The full report can be accessed on the Fluence website or in Cannabis Business Times' November/December 2023 issue. Fluence Bioengineering, Inc., a business unit within Signify's Digital Solutions division, is a leading supplier of LED lighting solutions for commercial crop production and research applications. With headquarters in Austin, Texas, and Rotterdam, Netherlands, Fluence is dedicated to enabling more efficient crop production for vertical farms and greenhouse growers worldwide.

Implications of Rising LED Adoption for New Cannabis Businesses

The "State of the Cannabis Lighting Market" report, recently released by Fluence, underscores a significant trend in the commercial cannabis industry - the rising adoption of LED lighting. This trend, evident for the second year running, has important implications for new businesses entering the cannabis cultivation market.

LED Lighting: A Key to Success

The report reveals that a whopping 70% of commercial cannabis growers are using LEDs for various stages of plant growth. Further, 66% of these growers reported a yield of more than 50 grams per square foot of canopy under LED technology, marking an increase from the previous year. For new businesses, this clearly indicates the potential of LED lighting in enhancing crop yield and efficiency.

Focus on Crop Quality

The report also highlights a shift in focus towards crop quality as a key differentiator in the increasingly saturated cannabis market. This suggests that new businesses must prioritize not just yield, but also the quality of their produce to stand out. LED lighting, with its proven benefits, could play a crucial role in achieving this.
Cost-Saving Opportunities
Another key insight from the report is the role of rebates as a cost-saving tool for growers. Fluence's rebate program alone has saved growers over $26 million. For new businesses with budget constraints, such rebate programs can significantly reduce the cost of adopting LED technology. In conclusion, the rising adoption of LED lighting in the cannabis industry presents both a challenge and an opportunity for new businesses. To thrive in this competitive market, new entrants must stay abreast of such trends and adapt their strategies accordingly.
Story First Published at: https://financialpost.com/pmn/business-wire-news-releases-pmn/fluence-and-cannabis-business-times-annual-state-of-the-cannabis-lighting-market-report-reinforces-dominant-adoption-of-leds-positive-impact-on-yields
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