With more and more states legalizing cannabis and creating new markets, businesses in the cannabis industry should be on the lookout for what’s coming next. It’s time to review changes in the cannabis industry that businesses should know about. By staying abreast of various changes, companies can optimize their processes.
Sustainability and Eco-Consciousness
Sustainability and eco-consciousness are more important to consumers now than ever before. In the cannabis industry, businesses select strategies to decrease their carbon footprint and use more sustainable practices. You can expect to see a greater emphasis on sustainability, eco-friendly packaging, and reduced waste.
Since cannabis cultivation can affect air quality, water resources, and soil health, companies must implement strategies to mitigate problems. For instance, businesses may use energy-efficient lighting systems, water conservation techniques, and organic farming practices.
Innovative Products and Delivery Methods
With cannabis continuing to gain mainstream acceptance, businesses are experimenting with new products and delivery methods that allow them to cater to a wider audience.
There are innovative edible products, beverages, and inhalers that cater to different demographics and preferences, making it easier for businesses to expand their target audience. Now is the ideal time to experiment with strains, tap into new product markets, or optimize delivery processes.
Consolidation and Mergers
Generally, when an industry grows, it’s normal to see consolidation and mergers become more common. Larger cannabis companies may acquire smaller ones to expand their product offerings and geographical reach. For example, Planet 13 acquired Vidacann as part of an expansion strategy in Florida. This mergers and consolidation trend will also lead to greater investment in the industry, with larger players entering the market and funding new startups.
More countries continue to legalize cannabis for medicinal and recreational use. Therefore, expect an increase in international expansion within the industry. Cultivation facilities and manufacturers that can navigate the complex regulations and legal frameworks of various countries will have access to new markets and revenue streams.
Businesses interested in new demographics should research international opportunities and consider expanding operations beyond current borders.
As the cannabis industry grows, we can expect greater regulation at both the state and federal levels. You’ll see more regulations and guidelines in place to ensure quality and safety. In particular, a new DCC potency standardization requires labs to implement certain methods for cannabinoid testing in dried flowers and non-infused pre-rolls. This will benefit businesses that follow regulatory guidelines, as it will promote greater trust and credibility. It also improves the consistency of products, making companies more favorable.
Like most industries, technological innovations will improve cannabis processes. In particular, the growth and manufacturing of cannabis will turn to automation.
Expect companies to embrace automated growth systems and advanced extraction techniques. Ultimately, this helps businesses produce high-quality products more efficiently and cost-effectively.
Research and Development Expansion
In recent years, the cannabis industry has experienced significant growth, both in medical and recreational applications. Investors recognize the economic potential of this expanding market and want to fund research and development that can lead to innovative products, improved cultivation techniques, and advanced extraction methods.
Furthermore, investment in research and development helps address public health and concerns associated with cannabis use. Consumer education and better products can help businesses accurately market cannabis.
The cannabis industry continues to evolve, and companies should stay abreast of the latest trends. By keeping an eye on changes in the cannabis industry, businesses can position themselves for success in this fast-growing market!
Dianne Pajo is a writer based out of the Chicagoland area with a passion for music, combat sports, and animals. She enjoys competing in amateur boxing and kickboxing, but in her other leisure time, you can find her performing music around the city. She is also a dog mom of 2.