Marijuana industry executives should pay attention to both positive and negative trends in the industry this year. While some will be a continuation from last year, some will be new to the industry. Below is a list of some trends to be on the lookout for this year.
More states will legalize cannabis.
More states are expected to legalize cannabis this year, including Delaware, Maryland and Rhode Island, which may legalize the herb for recreational use. States such as North Carolina, South Carolina, Kansas and Mississippi are also expected to legalize cannabis for medical use.
However, the federal government’s stance on the herb’s legalization may remain unchanged.
Unpredictability of climate change will continue.
Weather patterns have become unreliable due to climate change, which means marijuana cultivators need to become adaptable and flexible. Severe flooding, drought, hurricanes, early freezes and wildfires should all be watched closely by cannabis growers.
The industry’s reputation will be cemented as recession proof.
Even with more coronavirus variants developing, cannabis sales at the retail level are expected to remain strong, as they have throughout the pandemic. While the pandemic does present both unexpected and expected challenges for the operational side of marijuana companies, consumers will continue visiting retailers as the market grows.
Inaccurate profitability and growth assumptions in Canada will continue.
Some CEOs of publicly traded Canadian companies will continue making incorrect assumptions about the expected profitability and growth of their businesses as well as about the pace of the global legal marijuana market’s growth and development. It would be fascinating to track this as well in the United States.
More firms will demand lower taxes.
The states of California and Alaska are two markets where state-imposed taxes are a point of contention. For instance, companies participating in the marijuana market in California warn that heavy taxes may cause the market’s collapse, with a recent letter sent to Gov. Gavin Newsom highlighting that if meaningful changes weren’t made, most companies would be faced with the choice of paying their employees or paying extortionate taxes to a system that’s been designed to fail. Over in Alaska, an $800 growing tax has imposed financial strains on cultivators. Players in other cannabis markets are likely to call for reduced taxes so that the industry can thrive.
More cities and towns in California will embrace the industry.
It is expected that more municipalities in this particular state will embrace the licensed cannabis industry.
Brands will grow across various sectors.
As more brands set up their own operations and find ways to work with partners in other states, this trend is expected to grow. Thus far, we’ve observed some edibles and flower brands such Wana Brands expand across the United States and internationally.
Mergers and acquisitions will continue
These deals are set to continue at a fast pace in the United States, especially in states with newly legal marijuana markets. The newly opened markets are likely to create an additional user-base for technology and devices, such as those from RYAH Group Inc. (CSE: RYAH), which facilitate the use of marijuana as a medicine.
NOTE TO INVESTORS: The latest news and updates relating to RYAH Group Inc. (CSE: RYAH) are available in the company’s newsroom at https://cnw.fm/RYAH
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