Cannabis Trends: 2022 & Beyond | Cannabis License Experts
The year 2021 was a boon for the North American 420 industry—primarily thanks to the mass legalization in the US. What cannabis trends await in the coming decade?
It’s an exciting time to be a toker, grower, or aspiring ganja entrepreneur. From the circulation of cannabis seeds in the USA to tiny dispensaries cropping up to counter the giants, we’re moving towards a brighter future.
How does this widespread move translate into economic and social changes? What does it mean for retailers and consumers?
We cannot tell the future—our legal experts can only keep up with the developments and advise accordingly. From what we’ve seen, here are five legal marijuana predictions to watch out for in the following years.
1. Continual Development
The cannabis industry is ripening in North America, but it’s defying economist expectations.
Mature markets typically hit a plateau, and profits remain in an expected range past that point. Previous predictions assumed that would happen to weed by 2022, but sales are yet to drop.
Instead, they might reach a record high in America and Canada this year.
Between the existing and emerging retailers, legal weed sales might surpass $30 billion this year in the US and hit $4.8 billion in Canada. The boom includes everything from seeds to buds and paraphernalia.
While we’re on numbers, buyers might enjoy the following marijuana industry projection.
Plummeting Cannabis Prices
The post-pandemic period is straining people’s budgets. As global inflation hits manufacturers left and right, prices of goods and services skyrocket. Regardless, Canadian weed is getting cheaper by the day.
This decline in cost is a product of competition. There are over 800 licensed Canadian producers, all trying to stay afloat. They have to cut the prices of flowers, concentrates, edibles, and tools to keep shoppers and attract new ones.
US states with legal and regulated sellers are seeing a similar trend—it’s especially prominent in California.
While dispensary profits might diminish, this change expands the customer base. More people can now purchase the pot, leading to an influx of shoppers across gender, age, and class lines.
2. Public & Corporate Support
Public support for legalization is a logical counter to prohibition—it happened for alcohol, and now we see it for weed. People’s ambitions affected significant changes in North America in recent years, but the fight continues in 2022 and is likely to in the future.
Two in three Americans support the idea of legalization, and roughly 60% agree the plant should be legal for medicinal and recreational use. Canadians demand an update on the strict Cannabis Act.
The corporate world responds to public support. Notably, Amazon announced it would lobby on behalf of federal legalization in America. As the second-largest national employer, it opened the doors for other companies to voice their opinions.
Democratic and corporate sentiments are slowly but surely reaching the federal level. American legalization efforts showcase that (some) officials want to respond to the people’s demands.
3. Increased M&A Activity
The following cannabis industry forecast might discourage emerging businesses, but it’s only natural in a free, capital-driven market.
Weed corporations play a significant role in the marijuana sales landscape, especially in America. The previous year saw over 300 mergers and acquisitions, with big-name players assimilating mom-and-pop shops.
The situation isn’t hopeless for small dispensaries, though. Several states introduced social equity programs, seeking to give a leg up on new stores.
The situation is similar in Canada, where major corps want to grow as large as possible. A field of over 800 independent producers is unsustainable, so predictions suggest that under a dozen manufacturers will soon dominate the sector.
Canada is making an exception to this cannabis trend. Several provinces launched the Farm Gate Program in 2021. This initiative lets individuals carry out seed-to-sale activities, so residents and tourists may shop hyper-locally.
4. Ever-Growing Variety
Marijuana is getting more popular and accessible, and new retailers are popping up across the scene. They need unique selling points to surpass the competition; low costs alone don’t cut it.
What’s more, the diverse shopper demographic is creating a market for pot in all forms. The logical response to these two tendencies is to expand product selection.
Innovative seed variants, strain types, concentrates, extracts, and paraphernalia are entering the market. From all-natural cultivators to people with processing licenses, retailers are splitting into niches to accommodate the demand.
As weed becomes legal and accessible, people’s beliefs change. This cultural shift is a blessing for brands, who are now free to carve out new and unique spaces for themselves.
Dispensaries and seed banks no longer have to stick with the stoner stereotype image from the 1970s. While some are reclaiming the old-school style, many are exploring a new way to advertise.
You can now find slick, clean brands selling stylish marijuana products. Others choose a scientific approach, and many keep their ads playful and fun. There’s room for all types of messages in the modern marketplace.
5. A Shift to Online Spaces
The final trend isn’t exclusive to cannabis—it’s hitting all industries in 2022.
The pre-pandemic period saw a massive transition to eCommerce to reduce overheads and expand operations. Lockdown and restrictions only made more retailers switch to an online business model.
The internet created new job opportunities for weed enthusiasts from all walks of life. There’s an increasing need for marketing experts, from SEO specialists to graphic designers, video producers, and content writers.
Online cannabis trends raise the question of operational security.
Hacking risks are higher than ever for online stores, necessitating comprehensive insurance plans. While this requirement makes it more expensive to set up shop, it makes customers more confident in their purchases.
Our marijuana industry outlook results from the marketplace gaining footing and acceptance. Things will presumably remain steady until there’s a change below the Southern border.
All bets are off after America legalizes federally and Canada updates the Cannabis Act—expect an update once that happens.
Until then, why not take advantage of the post-banner-year stability to hop on the bandwagon? Contact us to tackle cultivation licenses. Once we get you set up, you’re free to buy seeds, grow weed, and join this profitable market.
How we can help you
At Cannabis License Experts, we provide you with the guidance to plan your cannabis business, acquire funding, navigate the legal requirements, and acquire the appropriate license for your operations. As the Canadian cannabis industry develops, more and more licensed producers will be needed to meet the demands of consumers.
Cannabis License Experts offers support from day one of starting your cannabis business, including strategic planning, floor plan preparation, site audits, SOPs, Preventive Control Plans (PCPs), and more.
Our Edibles Compliance division can provide you with a solid plan for your edibles business to help get your products on store shelves.
About the Author – Jennifer Gallagher
Jennifer Gallagher is an experienced cannabis grower at SeedSupreme Seedbank. During a 7-year career in the marijuana growing business, Jennifer has gained a high competence in this field. As far as weed is concerned, she knows it all inside out. Jennifer is an expert in pot-growing, as well as cannabis types and their effects. She’s also familiar with all legislation nuances. Here is her LinkedIn profile.