Cannabusiness tech: In support of the growing cannabis empire

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  Quantumrun Foresight
• November 3, 2022

Insight summary

Marijuana or cannabis has become legal in many countries, not just as recreational drugs but as therapeutics. As the industry continues to expand and receive certification, the technology market and ecosystem that support it will likewise grow and develop. The long-term implications of this trend may include enhanced payment systems for cannabis businesses and more countries legalizing the incorporation of these substances into healthcare.

Cannabusiness tech context

Cannabis sativa is most well-known for its psychoactive compound tetrahydrocannabinol (THC). However, THC is only one of many chemicals found in this plant. The gradual legalization of cannabis in many countries has created opportunities for its medicinal and commercial use, sparking scientific interest in the plant’s genetics and biochemistry.

In the US, legal cannabis used for medicine cannot contain more than 0.3 percent THC. Beyond that amount and it can lead to physical or physiological dependence. With the legalization of cannabis, many businesses have opted to support the plant’s growth and distribution (cannabusinesses). 

Grand View Research predicts the cannabis market will reach $70.6 billion USD in 2028. Despite this potential, many US cannabis company owners cannot manage operations due to state or federal regulations that may regard their companies as illegal. However, technologies are available to aid retailers and customers.

Cannabusiness tech refers to software and devices that enable companies to enhance their cannabis products or services, including meeting drug-use regulations. People often associate cannabusinesses with solely production and distribution, but this sector has many types of services. In particular, the support industry has grown, including insurance and software. Insurance providers may protect crops, stocks, and inventory. Meanwhile, various software platforms allow various plant-growing processes to be automated. 

Disruptive impact

Some experts note that the increasing legalization of cannabis has led to universities advancing research in cannabusiness tech. For example, in 2020, Texas A&M University scientists employed a portable laser instrument called a Raman spectrometer (RS) to identify whether a cannabis plant contains more than the 0.3 percent THC limit without affecting the plant’s chemical or physical makeup. The machine could be used by law enforcement officers, farmers, or purchasers to tell if a plant is hemp (a legal type of Cannabis sativa) or higher-THC cannabis. Additionally, organizations are investigating self-contained laboratories for tissue cultures. A considerable advantage of tissue culture over traditional crop growing is that it allows millions of cultures to be stored in a limited space while maintaining low environmental constraints.

Meanwhile, in 2020, genetics company Endocanna Health announced that it would merge its genetics technology with research on different cannabis species to advance personalized medicine. The goal is to educate cannabis patients and consumers about the peer-reviewed research available to make well-informed decisions. Endocanna’s genomic testing, similar to 23andMe and other genealogy companies, can show how a person’s endocannabinoid system (which regulates food intake) reacts with different cannabis profiles.

This feature helps people understand which strains will give them the desired effects they want (such as help in sleeping or relieving pain). Endocanna hopes that further refinements in their genomic testing can help accurately determine the optimal cannabis dosage for each individual.

Implications of cannabusiness tech

Wider implications of cannabusiness tech may include: 

• Open banking application programming interfaces (APIs), including cannabis payments, into their systems.


• Blockchain technology tracking and identifying where a plant is grown, how it is distributed, and who purchased it.


• More delivery apps like Uber Eats including cannabis into their list of allowed food categories. Marijuana-specific delivery apps may also be available depending on local regulations.


• More countries legalizing cannabis to conduct joint research partnerships among universities and technology think tanks.


• The long-term viability of legal cannabis businesses as the application of purpose-built technologies and software may increase profitability metrics. Such incremental improvements may also support the growth of the legal cannabis sector as a whole.


• Illegal cannabis growers becoming more profitable as they too utilize cannabis-oriented services and software, albeit from the black market. 

Questions to consider

• What are the other potential technologies that can benefit cannabusinesses?


• How else can tech ensure that cannabis is being used and distributed correctly?