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The cannabis industry is very fluid and evolves faster than most markets. Regulations still haven’t been finalized, and methods of consumption and investment as well as the geography of the market are going through continual change.
If you are an entrepreneur in the cannabis industry, here are six trends that you should pay attention to.
In 2019, cannabis industry sales are predicted to be higher this year than they were in 2018. With the market growing every year, investors, consumers, and entrepreneurs can expect legal weed sales to increase over the next few years.
One thing in particular to watch out for over the next few years is the national and global expansion of the legal weed market. Legalization is anticipated in New York, New Jersey, Illinois, as well as other Midwest and East Coast states, despite the slow pace of legislation. The worldwide recreational cannabis market is projected to reach $31 billion by 2021. According to a Brightfield Group report, the CBD market could reach $22 billion by 2022.
The average cannabis consumer is also changing, with the customer base becoming more diverse. The demographic now consists of more middle-aged adults, women, and seniors consuming weed in different forms. This shows a growth and demand in the market with a shift to alternative products.
Flower is no longer the most popular method of consumption in California. In 2018, vaping beat flower as the top consumption method in California. Individuals that are leery of smoking marijuana are trying edibles as well. You can expect these methods of consumption to grow in 2019:
-Edibles (including CBD gummies, chocolate edibles, CBD chocolate)
Last year, the popularity and use of CBD products such tinctures and gummies rose. Expect this trend to continue in 2019 thanks to the passage of the 2018 Farm Bill, which legalized hemp farming nationally. Since it is now legal, hemp and the CBD derived from it are becoming very profitable. The well-known health benefits of CBD are also setting the industry up for impressive growth this year.
Many companies, including large non-weed related corporations, are increasingly likely to invest in legal cannabis in the form of distribution deals, product design or investment in producers.
You can also purchase stocks in cannabis. Stock has grown immensely over the course of 2018, and that has continued into 2019. Weed producer stocks are attracting investor and media attention, with large Canadian producers benefitting the most. Multiple plant-touching and non-plant-touching weed businesses are listed on Canadian and American stock exchanges, which means more opportunities to invest in this lucrative market.
Cannabis consumers desire a variety of products with different effects, potency levels, and prices. One growing demand is for luxury products in both wellness-focused CBD products and an increasing adult use market. This includes items such as high-end skincare products, organic options, and high-quality edibles. This is also driving a bigger focus on branding, with brand ambassador being one of the most in-demand jobs in the cannabis industry right now.
One of the biggest cannabis industry trends is the expanding geography of the legal marijuana industry. This year, states such as New York, Connecticut, New Jersey, Illinois and Minnesota are likely to legalize marijuana. This industry growth is creating more opportunities for weed businesses in unsaturated markets. Not only does this provide new opportunities, but these states are also larger markets, which means big dividends for businesses who break into these markets first.
Continued growth and change are the biggest trends to watch for in the cannabis industry. In 2019, you can expect more shifts and opportunities in the legal weed market.