All in all, the marijuana industry last year faced numerous challenges that ranged from industry-wide hurdles, such as capital investment shortage and overproduction, to macroeconomic obstacles, particularly inflation.
This year, however, the industry could see potentially significant trends for most marijuana business executives.
As time passes, the cannabis market shall watch for an extended mergers and acquisitions (M&A) slowdown, regulatory calls within mature markets that struggle with oversupply, and retail-level product segmentation that easily adapts to evolving consumer spending habits.
Throughout 2023, marijuana business owners should watch for these three (3) possible cannabis industry trends:
Reduced Business Setbacks in Canada
In Canada, there is a gradual industry-wide trend in retail-level consolidation and business closures, but still, more retail stores will remain open in some locations. These closures have already affected some provinces, particularly those with inundated commercial markets.
Meanwhile, on the side of cultivation, the country has manufactured cannabis that’s substantially more than it’s capable of selling.
There isn’t any noticeable change regarding this cultivation trend for this year, but there’s also a chance for inventory to reach its peak and begin falling subsequently.
Illicit Market Containments After Recreational Cannabis Launched in New York
The State of New York has been struggling lately with its efforts to keep consumers away from the illicit market, which primarily consists of unlicensed dispensaries, especially with the gradual emergence of pop-up stores that sell cannabis and vans that offer marijuana through their backdoors.
For the state to make a distinction between the licensed market and illicit enterprises selling cannabis, regulators should not concentrate solely on licensed cannabis product safety and testing.
New York state regulators must implement “friendly” business conditions via lower taxes.
Obsession Over Tetrahydrocannabinol (THC) Potency and Laboratory Shopping
Since the outburst of the tetrahydrocannabinol (THC) potency issue last year, legal charges have been made against testing labs due to misrepresentation of THC numbers.
As a result, state regulators in Florida and Nevada have decided to impose fines and suspend those laboratories for such a violation.
On the brighter side, these industry-wide developments could institute better education for consumers regarding the other several benefits of cannabis as a plant and – more importantly – lesser laboratory shopping for potential cannabinoid content.