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The legal cannabis industry is growing rapidly, and it’s expected to continue to grow in the years to come. Here’s a look at what the industry will look like in the future.
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The New Industry
The cannabis industry is going to be legal in Canada soon and it’s expected to be worth billions. There are a lot of opportunities for entrepreneurs in this industry. However, it’s not going to be easy to get into. The market will be saturated and there will be a lot of competition. Let’s talk about what the new legal cannabis industry will look like.
The end of prohibition
After decades of prohibition, the legal cannabis industry is finally taking shape. And while there is still a long way to go before the industry is fully mature, we are already starting to see what it will look like.
The most obvious change is the newfound legitimacy of the industry. With cannabis now being legal in several US states and Canada, businesses are starting to emerge from the shadows and enter the mainstream. This shift is bringing much-needed investment, innovation, and professionalism to the sector.
Of course, the legal cannabis industry is still in its early stages, so it remains highly fragmented. This is likely to change as consolidation starts to take place and bigger companies start to dominate the market. We are already seeing this happen with Canopy Growth acquiring Hiku Brands and Aurora Cannabis buying MedReleaf.
The other big change we are seeing is the rise of the ancillary businesses that support the cannabis industry. This includes everything from grow lights and hydroponic equipment to software and security services. As the industry grows, so too will the demand for these kinds of products and services
The rise of the legal cannabis industry
As more and more states legalize cannabis, the industry is rapidly evolving. Here’s a look at what the new legal cannabis industry will look like:
There will be a lot more players. Big tobacco and alcohol companies are already getting involved, and as the market expands, we can expect to see more big businesses enter the fray. This could make it difficult for small businesses to compete.
The products will be more sophisticated. We can expect to see a wider range of products, from edibles and drinks to topical products and CBD-based products. And as the industry matures, we can expect these products to become more sophisticated, with better branding and packaging.
There will be more consolidation. As the industry matures, we can expect to see consolidation among growers, processors, and retailers. This could lead to fewer choices for consumers, but it could also make the industry more efficient and lower prices for consumers.
The landscape will change. With more states legalizing cannabis, the legal landscape will change dramatically. We can expect to see a patchwork of state laws, with some states allowing recreational use while others only allow medical use. This could make it difficult for businesses to operate in multiple states.
It’s still early days for the legal cannabis industry, but it’s clear that it is here to stay.
The Players
The growers
The growers are, unsurprisingly, the firms that will cultivate and grow the cannabis plants. They are likely to be large-scale operations, with substantial greenhouses (or even warehouses) and the capability to grow large quantities of plants. They will need to comply with strict regulations on how the plants are grown, including limits on things like chemicals and pesticides.
The growers will sell their products to the processors, who will then convert it into various forms who will then sell it to the retailers.
The processors
Processors are the businesses that will extract cannabis oil from the plant material and create products such as edibles, topicals, and concentrated extracts. These products will be bought by retailers and sold to consumers. The processors will need to be licensed by the state in order to operate.
The retailers
The burgeoning legal cannabis industry is attracting a wide range of players, from small businesses to multinational corporations. Retailers are expected to play a major role in this growing market, and many are already positioning themselves to capitalize on the expected growth.
Some retailers, such as pharmacy chains and gas station operators, are hoping to use their existing infrastructure to sell cannabis products. Others, such as accountants and lawyers, are looking to provide services to the industry. And then there are those who are hoping to build new businesses from scratch.
Here’s a look at some of the retailers that are jockeying for position in the legal cannabis industry:
Pharmacy chains: Pharmaceutical companies have been slow to enter the cannabis space, but some pharmacy chains have been exploring ways to get involved. In 2016, CVS Health announced that it was considering selling CBD products in some of its stores. And earlier this year, Walgreens said it was “evaluating” the possibility of selling CBD products as well.
Gas station operators: Another existing retail category that’s eyeing the cannabis market is gas station operators. In 2018, 7-Eleven announced that it was partnering with a Canadian company to sell CBD products in select stores in Canada. And last year, Shell announced plans to open “cannabis rooms” at some of its gas stations in Canada.
Convenience store chains: Convenience stores are another retail category that’s taking an interest in cannabis. In 2018, 7-Eleven announced that it was partnering with a Canadian company to sell CBD products in select stores in Canada. That same year, Circle K announced plans to do something similar in Europe.
Accountants and lawyers: Many professional services firms are looking at the legal cannabis industry as a potential source of new business. Accounting giant PricewaterhouseCoopers has even created a division devoted exclusively to serving the cannabis industry. And law firms across the country have been beefing up their cannabis practices in recent years.
The Products
The legalization of cannabis has created a new industry, and with that comes new products. Cannabinoids, the active chemicals in cannabis, can be used in various forms including oils, edibles, and topicals. Products that contain cannabinoids are being marketed as treatments for various conditions including anxiety, pain, and inflammation.
Flower
The term “flower” refers to the smokable part of the cannabis plant that is typically sold in pre-rolled joints, in a pipe, or in a bong. Flower can also be used to make edibles or cannabis-infused topical products. The THC and CBD content of flower varies depending on the strain, but it is typically higher in THC than other cannabis products.
Concentrates
Concentrates are a potent form of cannabis that are produced by extraction. This process involves using a solvent to extract cannabinoids and other compounds from the plant material. The resulting product is a highly concentrated form of cannabis that can be consumed in various ways.
There are several different types of concentrates, including:
-Hash: Hash is a type of concentrate that is made by collecting and pressing resin glands from the female cannabis plant. This results in a product that is rich in cannabinoids and terpenes. Hash can be consumed in various ways, including smoking, vaporizing, and eating.
-Oil: Cannabis oil is a type of concentrate that is made by extracting THC and CBD from the plant material using a solvent. Oil can be consumed in various ways, including smoking, vaporizing, and taking it orally.
-Wax: Wax is a type of concentrate that is made by extracting THC and CBD from the plant material using a solvent. Waxes have a higher concentration of THC than other types of concentrates and can be very potent. They can be consumed in various ways, including smoking, vaporizing, and taking them orally.
-Shatter: Shatter is a type of concentrate that is made by extracting THC and CBD from the plant material using a solvent. Shatter is very potent and has a high concentration of THC. It can be consumed in various ways, including smoking, vaporizing, and taking it orally.
Edibles
Cannabis-infused edibles are one of the most popular product categories among cannabis consumers. Cookies, cakes, brownies, and gummies are just some of the tasty treats that can be infused with cannabis oil or distillate.
The dosages of THC and CBD in edibles can vary widely, so it’s important to check the labels before consuming. For first-time users, it’s best to start with a low dose (5mg or less) and increase gradually as needed.
Edibles can take up to two hours to take effect, so be patient and don’t be tempted to eat more if you don’t feel anything after an hour. The effects of edibles can last for several hours, so it’s best to consume them in a safe and comfortable setting.
The Future
The cannabis industry is currently in a state of flux, with a lot of uncertainty surrounding its future. However, there are some things that we can be sure of. The legal cannabis industry is going to be a big business, with a lot of opportunities for those who are willing to seize them.
Consolidation
The future of the legal cannabis industry is likely to be consolidation. The industry is still in its early stages, with a lot of small businesses competing for market share. But as the industry matures, the big players are likely to start buying up the smaller ones. This has already started happening in Canada, where some of the biggest companies in the industry have started gobbling up smaller competitors.
This consolidation is likely to happen for a few reasons. First, it will be harder for small companies to survive as the legal market gets more competitive. Second, the big companies will have more money to spend on acquisitions as they grow and generate more profits. And third, consolidations will help the big companies expand their reach and consolidate their grip on the market.
So what does this mean for consumers? It’s hard to say. Consolidation could lead to higher prices and less choice, or it could lead to better quality and more efficient production. It’s too early to tell how it will all shake out. But one thing is for sure: the future of the cannabis industry is consolidation.
Mainstream acceptance
Cannabis has come a long way from its illicit beginnings, and today it is enjoying a period of unprecedented acceptance. This is particularly true in North America, where Canada has become the first G7 nation to legalize cannabis for adult recreational use, and where cannabis reform is gaining serious traction in the United States. But what does this newfound acceptance mean for the future of the cannabis industry?
It is safe to say that the future of the cannabis industry will be very different from its past. For one thing, it will be far more mainstream. No longer relegated to the margins of society, cannabis will be fully integrated into the mainstream economy, with businesses ranging from small mom-and-pop operations to large multinational corporations. And as more and more countries around the world legalize cannabis, this trend is only likely to continue.
Of course, mainstream acceptance will bring with it a whole host of new challenges and issues for the cannabis industry to grapple with. For example, there will be increased pressure on companies to ensure that their products are safe and compliant with strict government regulations. There will also be a need to address social issues such as responsible consumption and preventing underage use. But these challenges are all surmountable, and they pale in comparison to the opportunity that awaits us in the years ahead.
So what does all this mean for those of us who are involved in the cannabis industry today? It means that we are on the cusp of something truly special – an opportunity to build an industry that is not only legal and legitimate, but also thriving and prosperous. It is an opportunity that we must seize with both hands.
