Cannabis industry trends evolve faster than most markets. Not only haven’t regulations been finalized, but methods of consumption, investment and therefore the geography of the market itself are in constant flux.
Though all the noise, these are the highest six cannabis industry trends that entrepreneurs should concentrate on.
1. Cannabis industry trends indicate higher sales than ever.
The biggest evolution within the cannabis industry is that sales are going to be higher this year than they were in 2018, and investors, consumers and entrepreneurs alike should expect to ascertain legal weed sales blossom for the subsequent few years because the market grows annually.
The biggest of all cannabis industry trends for the subsequent few years is that the national and global expansion of the legal weed market. Despite a grinding legislative product that has gone much slower than advocates hoped or expected, both New Jersey and NY weed legalization is anticipated this year, alongside states in Midwest (particularly Illinois) and other East Coast states. The worldwide recreational cannabis market is projected to succeed in $31 billion by 2021. The CBD market alone could reach $22 billion by 2022 consistent with a Brightfield Group report.
The weed consumer demographic is growing ever more diverse. The typical cannabis consumer is now middle-aged, with more women and seniors consuming weed in its various forms. This suggests that the market is growing and demand within the market is shifting to alternative products.
2. Products aside from flowers are gaining market share.
Like many trends that spread from California eastward, vaping in 2018 outpaced flower because of the hottest method of consumption in California. Similarly, people curious to undertake marijuana but unwilling to smoke it are turning to edibles. Expect one among the foremost significant cannabis industry trends to be the continued shift faraway from flower and towards other methods of consumption.
Vapes: Vapes is one of the most well-liked cannabis products in 2019. within the half-moon of 2018, vape sales grew 69 percent total, consistent with BDA Analytics. CBD vape sales alone rose 105 percent over an equivalent period.
Edibles: Regardless if we’re talking chef-prepared cuisine, the standard gummy or anything in between, edibles of either the CBD and THC variety also are booming in popularity across all legal states. Here are a couple of statistics to point out what proportion demand for these products increased in 2018:
- CBD gummy sales grew 925 percent.
- Chocolate edible sales increased 166 percent.
- CBD chocolate sales are up 530 percent.
Beverages: Though classified as edibles, consumers and investors are giving infused beverages more attention than ever. The subsequent trends indicate that beverages will become bigger within the next few years:
- Big investors including Anheuser Bush and Coca Cola have entered into talks to take a position in infused beverages.
- Weed companies are already manufacturing products like hangover proof beer infused with THC.
- Beverages containing CBD for medicinal benefits also are increasingly popular, like lattes and smoothies infused with cannabis oil.
3. Massive CBD market growth.
2018 saw the increase of CBD products starting from tinctures to gummies. In 2019, expect the rapid expansion of the CBD market to be among the foremost notable cannabis industry trends. With an annual rate of growth of over 140 percent, the CBD market could eclipse the adult-use marijuana market by 2022. This is often largely thanks to the passage of the 2018 bill which legalized hemp farming nationally.
With its new status, hemp and therefore the CBD derived from it are now legal and lucrative to supply. Compound that with CBD’s reputed health benefits and therefore the CBD industry is about for impressive growth.
In addition to promoting general well-being, CBD can help with difficult medical conditions consistent with research.
4. A flood of investment.
One of the cannabis industry trends shaping the whole market is growing investment from all sides. Large non-weed-related corporations are increasingly likely to take a position in legal cannabis within the sort of distribution deals, product design or investment in producers.
It’s not just corporate players who are investing. Individuals trying to find how to take advantage of the cannabis boom can simply purchase stocks. With eye-catching growth over the course of 2018 that has continued into 2019, weed stocks are attracting investors and media attention. This is often very true for giant Canadian weed producer stocks.
Both plant-touching and non-plant touching weed businesses are listed on Canadian and American stock exchanges. This suggests more access to capital and larger operations than ever.
5. Product variety and branding.
Above all, the cannabis industry trends towards a more sophisticated customer base that desires a spread of products with different effects, potency levels, and costs. One manifestation is that the growing demand for luxury products in both wellness-focused CBD products and a larger-than-ever adult-use market. These include items like luxury skincare products, high-quality edibles, and organic options, all of which are driving an ever-sharper specialize in branding. The brand ambassador is one of the foremost in-demand cannabis jobs immediately.
The two best-known cannabinoids, CBD and THC, aren’t the sole aspects of the plant attracting attention from producers and consumers alike. Terpenes, which are organic compounds that give weed its flavor and odor, are a growing focus. Wonder why a particular strain tastes like blueberries or pineapple? These scents and tastes come from terpenes.
As the market grows in size and merchandise diversity, people want access to products with a spread of flavors. Terpenes are easier to taste and thus more important than ever with the increase of concentrates.
6. Legal weed spreads eastward.
The one cannabis industry trend that encompasses all the others is that the expanding geography of the legal marijuana industry. Every state that legalizes instantly creates a serious new industry. For instance, socially conservative Oklahoma, ranked just 28th in population among the 50 states with slightly fewer than four million residents, legalized medical marijuana in 2018. Within a couple of months, the demand for medical marijuana cards swamped state regulators, who have registered quite 3,000 marijuana-related businesses.
The likeliest states to legalize in 2019, including NY, Connecticut, New Jersey, Illinois, and Minnesota, are much larger. Most other states a minimum of considering legalizing medical marijuana, if they need not done so already, or expanding existing programs. For weed businesses, this suggests shifting their attention from the West to the East Coast as opportunities emerge in untapped markets.
When NY legalizes it’ll be the only largest recreational market within the country. This may translate to big dividends for the companies who capture even a little a part of that market first. Confine minds, starting a cannabis dispensary are often more profitable in newer markets than in already saturated ones.
Above all, the foremost significant among all cannabis industry trends are continued growth and alteration. Steel oneself against more shifts, and more opportunities, in legal weed.