Posted by The Standard by Black Market on Jan 19th 2023
10 Cannabis Industry Trends to Watch for in 2023
As the cannabis industry continues to grow and evolve, it's important for businesses and investors to stay informed about the latest trends and developments. Here are 10 key trends to watch for in the coming year:
- Legalization of cannabis in more states: With the recent legalization of cannabis in several states, including New Jersey and Arizona, it's likely that more states will follow suit in 2023. This will open up new markets for businesses and investors, and could also lead to increased demand for products like edibles and concentrates.
- Growth of the CBD market: CBD, or cannabidiol, is a non-psychoactive compound found in cannabis that has been shown to have a wide range of health benefits. As more states legalize cannabis and more research is conducted on CBD, it's likely that the market for CBD products will continue to grow.
- Increase in cannabis delivery services: With the ongoing COVID-19 pandemic, more and more people are turning to online and delivery services to purchase cannabis. This trend is likely to continue in 2023, as more businesses adopt delivery as a way to reach customers.
- Expansion of the cannabis tourism industry: As more states legalize cannabis, it's likely that the cannabis tourism industry will continue to grow. This could include everything from cannabis-themed tours and events, to cannabis-friendly accommodations and dispensaries.
- Development of new cannabis products: As the cannabis industry matures, we can expect to see more innovation in terms of new products and product formats. This could include everything from new types of edibles, to new methods of consuming cannabis, such as inhalers and transdermal patches.
- Growth of the cannabis wellness market: With more research being conducted on the health benefits of cannabis, it's likely that the cannabis wellness market will continue to grow. This could include products such as CBD-infused skincare and wellness supplements.
- Increase in cannabis banking services: As more states legalize cannabis, it's likely that more banks and financial institutions will begin offering services to cannabis businesses. This will make it easier for these businesses to access banking services and could also help to reduce the risk of fraud and money laundering.
- Development of new cannabis cultivation technologies: With the increasing demand for cannabis, it's likely that we will see more innovation in terms of cultivation techniques and technologies. This could include everything from new grow methods and lighting systems, to new strains of cannabis.
- Increase in cannabis investment opportunities: As the cannabis industry continues to grow, we can expect to see more investment opportunities for businesses and investors. This could include everything from cannabis-related stocks and ETFs, to private equity and venture capital funds.
- Development of new cannabis regulations and compliance frameworks: With the increasing legalization of cannabis, it's likely that we will see more regulations and compliance frameworks being put in place. This could include everything from new packaging and labeling requirements, to new taxes and licensing fees.
- BONUS - Delta-8 continuing to become legalized in more states: In the previous year, nearly every state with a legal marijuana market implemented some kind of rule to control delta-8 THC. Even in states with strong restrictions and small or nonexistent legal marijuana markets, delta-8 products proliferated almost unchecked, becoming a significant source of competition for the licensed business. Without a legislation change, which is improbable, the delta-8 market is likely to remain unchanged.
In addition to these trends, it's also important to keep an eye on the regulatory environment for cannabis. While many states have legalized cannabis for medical or recreational use, it remains illegal at the federal level. This creates a number of challenges for businesses operating in the cannabis industry, including difficulties in accessing banking services and limitations on advertising and marketing.
However, there are signs that the federal government may be moving towards a more favorable stance on cannabis. The Biden Administration has indicated that it plans to decriminalize cannabis at the federal level, and there have been a number of bills introduced in Congress aimed at reforming federal cannabis laws. If these efforts are successful, it could have a major impact on the cannabis industry, making it easier for businesses to operate and potentially opening up new markets.
Another trend to watch for is the increasing use of cannabis for medical purposes. As more research is conducted on the therapeutic benefits of cannabis, it's likely that we will see more doctors and healthcare providers prescribing cannabis for a wider range of conditions. This could lead to increased demand for medical cannabis products and could also result in more insurance coverage for cannabis treatment.
Finally, it's also important to keep an eye on international developments in the cannabis industry. While most of the current growth in the cannabis industry is taking place in North America, other countries are also starting to legalize cannabis for medical or recreational use. This could open up new markets for businesses and investors, and could also lead to increased competition in the global cannabis industry.
Overall, the cannabis industry is poised for significant growth in the coming years. By staying informed about the latest trends and developments, businesses and investors can position themselves to take advantage of the opportunities that the industry has to offer.