Cannabis Industry in 2022
Happy New Year!
The year ahead looks bright for cannabis, with all signs pointing to sustained growth over the next several years.
In fact, Marijuana Business Daily reports that legal cannabis sales in the U.S. are expected to surpass $30 billion in 2022. The increase comes after several states passed recreational and medical cannabis initiatives in 2021, increasing access to marijuana. Insider reports that 18 states and Washington, D.C. have now legalized recreational cannabis, and 37 states allow medicinal cannabis use.
Patients with chronic illnesses including Parkinson's, Cancer, Alzheimer's, and a variety of neurological disorders are treated with medical Cannabis, so there has always been a strong argument for investment on the health side of the legalization issue. However, recreational usage of the product is gaining popularity. Furthermore, comprehensive programs are claimed to reinvest millions of dollars in cannabis tax proceeds into minority communities that have historically been harmed by the drug war.
Cannabis research is in full swing
We often think about cannabis legalization from a customer-based perspective, but there's another benefit to its growing availability. The U.S. Drug Enforcement Administration has moved on authorizing federally authorized marijuana manufacturers for research. This opens the door to studying the characteristics of cannabinoids and how they get into the bloodstream.
The COVID-19 Pandemic's Effects on Marijuana Use
The COVID-19 pandemic is affecting how many people use cannabis for medical uses, and how much. That's because the pandemic has taken its toll on people's mental health globally. It's no surprise, then, that a study published in the Journal of Addictive Diseases in September 2020 indicated rising use of medicinal cannabis. Specifically, the study found that people with mental health conditions increased their use of medicinal cannabis by 91% since COVID-19 was declared a pandemic on March 11, 2020.7 The emergence in November 2021 of Omicron, a new variant of the coronavirus, could keep marijuana use at high levels among mental health patients.8
Determining What Consumers Expect From Cannabis Brands
In most consumer industries, getting to the gist of customer sentiment is as simple as sending an online survey. But since the vast majority of transactions in the cannabis industry are in person and cash based, it’s hard to get an idea of what customers would change about their experience with a cannabis brand. Still, recreational cannabis brands have the task of staying ahead of the curve when it comes to satisfying customer needs. The cannabis brands that are able to figure out how to do that effectively will be well-positioned to advance ahead of the competition.
Silverlinings
Overall, the cannabis industry has much to be optimistic about as 2022 approaches. The U.S. industry, in particular, should be enthusiastic despite its remaining required maturation.
Since recreational cannabis sales are still federally illegal, keeping in contact with customers in order to gauge their satisfaction levels is difficult. Whether to check on 24 hour delivery dispensary near me, without P.O.S systems, keeping customer details on hand is nearly impossible, but by getting creative cannabis entrepreneurs should be able to find other innovative ways to tap into the heart of customer sentiment.
When most people discuss the recreational cannabis trade, much of the focus is on how exciting it is that the industry is growing at such a fast pace. Unfortunately, that’s just one side of the coin. The challenges it faces are clear, and they won’t be easy to overcome. However, 2022 still aims to be one of the most exciting years yet for the young, blossoming industry.
