Future Challenges for the Cannabis Industry in D.C
There’s no doubting that the legalization of cannabis and the establishment of a new business have made significant progress in recent years. In many respects, legal cannabis made history in 2020, with states like New Jersey, Montana, and South Dakota voting to legalize recreational cannabis, as well as states like Arizona and Mississippi approving it. {1}
The cannabis industry has nowhere to go but climb as rules surrounding the plant continue to change. In fact, the cannabis business in the United States is predicted to reach $30 billion in annual market value by 2025.{2}
It's been nearly four years since voters in Washington, D.C. approved Initiative 71, which allows anyone over the age of 21 to possess up to two ounces of marijuana. Residents of the district are allowed to use and produce marijuana on their own land, as well as exchange weed as long as no money, products, or services are exchanged.
Maine and Massachusetts have both legalized medical and recreational cannabis, but the process of operating recreational dispensaries has been slowed by political infighting and bureaucratic red tape. With more than 300 marijuana-related enterprises, DC is currently the most growing pot market on the East Coast.
According to a 2014 assessment by District officials, the city's cannabis market may be valued up to $130 million per year, generating up to $20 million in revenue for the city. This is a small portion of the expected expansion of the overall national industry, which, according to some projections, might reach $20 billion by 2022.
Running a cannabis-related business can be difficult on a daily basis, with challenges ranging from banking to text messaging to supply chain issues, so it may be difficult to detect the shift in cannabis legislation taking place across the country. Four state legislatures have legalized cannabis for adult use over 21 years of age in the first six months of this year, bringing the total to 18 states and Washington, D.C.
Fortunately, with legalization and decriminalization laws rapidly changing across much of the United States, and even national legalization in places like Canada, the future of cannabis seems lot better than it has in the past - albeit the good herb is still a tough nut to crack. Building a cannabis firm is no easy undertaking for any entrepreneur; the road to many legal cannabis enterprises is plagued with uncertainties across geographic and jurisdictional landscapes, adding to the difficulties. However, for those determined entrepreneurs dedicated to expanding access to cannabis-based products in all forms, the plant's potential remains huge and mostly untapped.
Medical Cannabis Industry Emerges ‘Stronger Than Ever’
For D.C.’s fledgling medical cannabis industry, the pandemic brought significant challenges as businesses looked for ways to accommodate patients without putting them at risk of contracting a potentially deadly disease.
However, there were some silver linings, as a wave of emergency regulations granted farmers and dispensaries more leeway in their operations.
The most significant shift occurred in October, when the Alcoholic Beverage Regulation Administration (ABRA) of D.C. took over the medicinal cannabis program from DC Health, an agency that had been chastised for limiting the industry's expansion.
ABRA took a more business-friendly stance right away, issuing a slew of emergency regulatory adjustments that allowed dispensaries and growers to adjust to the pandemic.
ABRA also authorized dispensaries permission to deliver cannabis items directly to customers' homes, as well as offer curbside pickup outside of storefronts. A month later, the agency approved cannabis sales to out-of-state patients, a significant step forward for the sector, which had previously been restricted to Washington, D.C. holders of a cannabis cardholders.
