The Global Cannabis Reset: Why the Next Wave Belongs to Operators

An interview with Deron Caplan, PhD

Deron Caplan, PhD, is a cannabis cultivation scientist and Senior Consultant at Sostanza. He advises operators in North America, Europe, and Asia on facility design, cost-per-gram modeling, and production systems that scale without sacrificing quality. His vantage point across many markets shapes his view of a global “reset” toward operational discipline.

Is there really a “reset”—and what does it look like on the ground?

Deron: Yes. The industry is shifting away from capital-heavy corporations toward small and medium operators. The first wave scaled faster than it could manage production; the next wave favors teams that run tight systems—clear goals, stable climate, labor efficiency, and good business practices.

Why do you think this era favors operators over investors?

Deron: The reset is giving space to smaller producers. Licensing structures in new markets increasingly favor limited canopy areas and distributed ownership models. Minnesota, for example, prioritizes small/medium-scale cultivation over large corporate farms.

This shift aligns better with the nature of cannabis as an agricultural craft. It mirrors other industries where regional identity and production methods matter—such as wine or microbrewing. Growers at this scale can experiment, adapt quickly, and build direct relationships with their consumers. The result is more variety in genetics, production styles, and product formats.

What separates teams that make it from those that don’t?

Deron: Well, the reality is that it doesn't matter if you're small, large or medium scale, you're running a business. At Sostanza we've seen a lot of teams and worked with a lot of people that have such a strong passion for cannabis, which is fantastic, but too often they neglect the fact that they're running a business. 

Long term success starts with an operator mindset. Standardized processes, tracked KPIs, and keeping costs visible.

Is this just a North American story—or global?

Deron: Good point, and while there has historically been a one way street from the American West -Coast to the rest of the world when it comes to cannabis culture and innovation, I believe we are now in an era where diverse culture and regional trends have an effect on cannabis culture and cultivation.

In Europe, for example, consumer behaviour reflects the broader food and agricultural mindset—valuing traceability, production methods, and regional quality. Countries like Germany are moving toward frameworks that support both commercial and craft-scale growers.

In some Asia-Pacific markets, early consumer preference may skew toward branded packaged goods, which fits larger producers. I think there’s room for both models. What I have observed is that in more mature markets, there is growing value in proximity between producer and consumer.

What’s the best analogy for where quality growth will come from?

Deron: The variety found in the craft beer scene really demonstrates the consumer demand for unique, experience-based consumption. I believe this approach represents the next logical step for the recreational cannabis market as it continues to mature. 

I think there’s always demand for the Bud Light equivalent—standardized, inexpensive product. But innovation and loyalty tend to come from the microbrew side: smaller producers, more variety, and a direct line to the grower.

What keeps you optimistic about the next phase?

Deron: Cannabis culture everywhere is different, and people are beginning to embrace their local traditions. Recreational cannabis culture is becoming a global melting pot, and the next decade will bring some genuinely interesting and distinctive products. It’s a bright future for the plant and for the people who grow it.

Key takeaways for operators

• Design for low margins: labor, climate stability, and cost/gram modeled up front.

• Standardize and measure: SOPs + KPIs across cultivation and post-harvest.

• Expect regional differentiation: quality and variety will skew to smaller producers.

• Large-scale has a place, but craft drives innovation and loyalty.