The U.S. cannabis industry is projected to double in size to $41.5 billion by 2025, according to New Frontier Data, driven by strong consumer demand, greater spending per consumer and the legalization of cannabis in new states. While cannabis flower remains popular, concentrates, edibles and other manufactured products have opened the door to a wider consumer base.

Cannabis flower cultivation is fairly straightforward but concentrates, edibles and other products require a significant investment in manufacturing equipment and space. As a result, it's cost prohibitive for many brands to manufacture their own products and a lot of legacy brands have been unable to get back into the market with next-gen products.

Let's take a look at how cannabis co-manufacturing is solving these problems and how investors can participate in the space through companies like FinCanna Capital Corp. (CSE: CALI) (OTCQB: FNNZF) that offers exposure to this exciting industry subset.

CFN recently spoke with The Galley CEO and Co-Founder Annie Holman. Click here to listen

FinCanna Capital Corp.

What is Cannabis Co-Manufacturing?

Cannabis co-manufacturing facilities are designed to solve many of the challenges for cannabis brands looking to bring new products to market. These companies help multiple brands confidently bring their ideas to life, launch products and scale more efficiently over time.

Co-manufacturing services can include:

• Sourcing
• Formulation
• Packaging
• Graphic design
• Testing
• Manufacturing and Production
• Storage

Surprisingly, even large companies are beginning to co-manufacture products because they aren't interested in the high capital costs of manufacturing their own products in-house. They can come in with a recipe and well-defined standard operating procedures and then it's off to the races.

In some cases, co-manufacturing is also an easier way for existing brands to expand into new states. A cannabis brand in Colorado may be able to use a co-manufacturing operation in California to create and launch their successful recipes and products in California. It's a lot more cost-effective than rebuilding operations in each state that the brand has products.

The Galley: A Best of Breed Co-Manufacturer

The Galley is a California-based co-manufacturer with an 8,300 sq. ft. facility built to FDA and CDPH standards focused on edibles, topicals, tinctures, chocolates, hard candies, gummies, pre-rolls, flower, vapes and beverages-along with anything else that cannabis brands can dream up. The Company even provides distribution and fulfillment services across most of California.