Cannabis Trends to Watch in 2022
In many ways, 2021 was a great year for the cannabis sector in the United States, thanks to continuing state-level legalization of adult-use cannabis. While the cannabis sector will experience some of the same challenges as last year due to federal prohibition, 2022 promises to be another exciting year for the industry.
What does L.A.'s cannabis landscape look like in 2022? What trends and factors will shape the look and feel of the local weed scene?
The frenzy of mergers and acquisitions that characterized the cannabis industry last year is expected to continue — if not increase — in 2022, particularly at the dispensary level.
The cannabis industry, despite federal laws, has experienced dramatic growth in recent years. By some, total U.S. cannabis sales was expected to exceed $24 billion in 2021, representing 38% growth over 2020 sales, according to a recent report published by Bloomberg that the cannabis industry will add $92 billion to the US economy in 2021.
The cannabis industry is no longer ‘budding,’ but it will continue to grow
However, there is no indication that this growth will slow down in 2022 and beyond -- motivated mostly by growth in mature markets such as California and growth of new and emerging markets that are getting bigger, as more states legalize recreational cannabis. Research firm BDSA, for example, anticipates legal cannabis sales to reach in 2022, and by 2026, surpassing the craft beer industry.
While some states, such as New York, have attempted to give "social equity" applicants and smaller players a leg up by granting a few licenses and, more recently, announcing initiatives to provide much-needed startup capital in the form of a $200 million public-private fund, the federal prohibition remains in place, making it difficult to succeed without significant outside investment.
The public support for legalization will continue to remain high, and the corporate support will continue to grow. According to a survey conducted by in April 2021, approximately 60% of American adults believe cannabis should be legal for medical and recreational use, according to a published survey in November 2021.
On the adult-use front, five states Connecticut, New Jersey, New Mexico, New York, and Virginia enacted laws legalizing and regulating the market as of now. Delaware and Oklahoma are poised to implement their own adult-use laws, while Maryland, Ohio, Pennsylvania, and Rhode Island are poised to achieve the same goal.
On the medical side, Mississippi is likely to pass legalization a second time (after its Supreme Court overturned a 2020 voter-approved ballot initiative), and lawmakers in Nebraska and Wyoming have redoubled their efforts. A number of other states, including Arkansas, Florida, Idaho, Missouri, and Ohio, all have cannabis-related initiatives on their 2022 ballots to strengthen their existing laws.
Public support for legalization will remain high, and corporate support will grow
Two-thirds of Americans support legalizing cannabis, according to a Gallup poll released in November 2021. According to a Pew Research Center poll done in April 2021, over 60% of U.S. adults believe cannabis should be legal for both medical and recreational usage. This public support has spread to the corporate world, with Amazon saying that it will lobby for federal marijuana legalization legislation. With one of the country's largest companies breaking the metaphorical dam, the trend is projected to accelerate in 2022.
Cannabis will continue to piggyback on wellness
The wellness market is measured in trillions, not billions, of dollars. So it’s not terribly surprising to see cannabis brands leveraging messaging around wellness and personal optimization (much like supplement manufacturers do) to reach new potential customers. Because consumers are fairly well versed with the language and ethos of the supplement industry, cannabis companies can use that familiar shorthand to introduce their products and tout their benefits. It will become more and more common to see cannabrands educating canna-curious customers how everything from tinctures to salves to concentrates can be incorporated into their workouts, wellness and self-improvement routines.
Cannabis will fully embrace the Internet of Things
We expect to see an increase in the number of cannabis consumption tools and products that use data and new technology to improve and evolve the cannabis experience. Cannabis technology, like all of our other household equipment, is going to get smarter and smarter, from QR codes on product packaging to vape pens that can be updated on a regular basis by developers.
Consumption lounges will heat up
The need for consumption lounges will increase as more people become comfortable with cannabis and cannabis tourism grows. Expect legislation to change to allow for adult-only public areas that cater to the cannabis audience, giving marketers a whole new branding arena to compete in, similar to how beer companies promote themselves in bars. Consumption lounges will not only provide another venue for connecting with customers, but they will also open up limitless opportunities for experiential marketing, a segment poised to grow in importance following the pandemic as consumers return to public life with an insatiable desire for novelty
