In many respects, 2021 was a great year for the cannabis sector in the United States, owing to continuing state-level legalization of adult-use cannabis. Although the cannabis sector will experience the same challenges as before due to federal restrictions, 2022 appears to be yet another interesting year for the industry.
Cannabis production, sales, and use have been hotly debated topics across the country, with different regions holding opposing views. Amidst these legalization obstacles, this industry blossomed like a plant through a stone crack and quickly acquired popularity. Without a doubt, this sector has come a long way to where it is today, but it still has a long road ahead.
Cannabis flowers aren’t the only thing people consume in jurisdictions where marijuana is legal. Cannabis fans are increasingly turning to a novel, less intrusive methods of consumption.
The following are the top cannabis industry trends to look out for in 2022:
Integration of IoT
Technological improvements are hitting a home run among the main cannabis trends. Incorporating the IoT into cannabis selling and use solves crucial issues like correct dosage and others.
Presently, tech is being tested to allow cannabis consumers to assess the strength of the substance they are ingesting. These advancements remove the ambiguity and encourage safe use, which may attract a much more careful audience to the use of cannabis. It is undoubtedly the start of additional valuable IoT technology to benefit the cannabis sector.
Expanding Cannabis Market
Despite federal illegality, the cannabis sector in the United States has grown dramatically in recent years. According to some assessments, overall cannabis sales in the United States exceeded $24 billion in 2021, marking a 38% increase over sales in 2020.
There is no indication that this expansion will diminish in 2022 or even beyond. That is primarily due to sustained development in existing markets like California, as well as the rise of emerging markets as additional states approve recreational cannabis. According to BDSA, legal cannabis revenues would reach $30 billion in 2022. Furthermore, it is expected to reach $47.6 billion by 2026, overtaking the craft beer market.
Recession-Proof Status of Cannabis
New coronavirus strains are continuously invading the U.S. and global markets. As a result, the worldwide market is suffering terribly from the uncertainty of the crisis. Despite this, one can expect cannabis sales to remain reasonably solid.
The continuing outbreak will bring cannabis firms with operational hurdles – both anticipated and unanticipated – such as rising prices and supply-chain concerns. Still, the customers will keep visiting merchants as the industry increases.
Social Harmony in the Cannabis Industry
As states open new cannabis channels, it’s becoming more typical for the licensing system to include a social justice component. It is expected to allow minorities and disadvantaged individuals to engage in the marijuana sector.
So far, this hasn’t performed as well as supporters had intended. States like Illinois are still embroiled in legal battles over social equality legislation.
However, this will not deter efforts to create the sector more egalitarian and equitable for racial minorities and others. The calls for this are becoming increasingly vociferous.
Decreasing Market Share of Cannabis Flower
Interestingly, the flower bracket’s market share dropped in 2021, both in the U.S. and Canada. Owing to the coronavirus outbreak, flower’s customer base in the United States fluctuated. The category’s proportion increased towards the end of 2020, but it began to decline in May 2021.
Heavy flower purchasers spent the most between the mid of 2020 and 2021 before its worth fell in late 2021. Flower expenditure in the United States has steadily declined, whereas it has increased in Canada.
According to Headset’s researchers, the decline in flower market dominance is most likely not due to decreased purchasing but fewer people choosing flowers. They also stated that this market had a larger proportion. Nonetheless, basket penetration is weaker in Canada, meaning that Canadians who buy flowers buy more of them per transaction.
Reserved Cannabis Consumption Areas
Cannabis usage in the open is currently illegal in the majority of states. It is expected to become a distant memory in 2022, as several states are completing plans to designate certain public locations for cannabis usage.
These designated consumption zones will result in considerable development in the cannabis sector due to increased sales for community interactions in such regions. The state of Nevada has legalized the development of cannabis use areas known as “consumption lounges.” These lounges are scheduled to open in Las Vegas around mid-2022.
Increasing Public Support for Legalization
As per the Gallup study issued in November 2021, two-thirds of Americans favor cannabis legalization. In addition, as shown in a Pew Research Center poll done in April 2021, over 60% of U.S. people believe cannabis must be legal for recreational and medical usage.
This public approval has permeated the business sector, with Amazon saying that it will advocate for the national cannabis reform bill. With Amazon, one of the country’s major companies breaking the metaphorical dam, the trend is projected to escalate in 2022.
The cannabis market environment has shifted dramatically, and more shifts are on the way in the years ahead. These 2022 developments simply lay the groundwork for a more successful and sustainable industry. Furthermore, the use of cutting-edge technology will propel the cannabis industry to new heights.
Businesses that are creative, agile, and well-capitalized will succeed, whereas newcomers in developed markets might struggle to acquire traction due to financing and tax barriers. One thing is certain: consumer and business desire for change is fueling momentum for full legalization.