Here’s what the cannabis industry is most optimistic about as we head into 2022

By Andrew Ward

Overall, the cannabis industry has to be optimistic about the year 2022 ahead. US industry in particular is likely to be enthusiastic despite the remaining required maturity.

Operators from numerous pot sectors told Benzinga what they are most optimistic about 2022. These were the four most discussed topics.

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Legalization increases sales and undermines stigmatization

Progress on cannabis reform continued across much of the country in 2021.

Nine states passed decriminalization, medical, or adult use laws in 2021. Numerous other states reformed their regulations through legislative measures this year.

Despite various bills making progress at the state level this year, federal law remains the same despite the House of Representatives re-approving the SAFE Banking Act and the MORE Act.

“No matter how long it takes to legalize cannabis federally, as a country we have definitely made significant strides toward cannabis liberalization,” said Andrew Thut, chief investment officer of 4Front Ventures Corp.

Thut said he hoped more states would adopt social justice measures as they reform cannabis laws.

Tom Bruggemann, CEO and inventor of the Ag-Tech brand Tom’s Tumble Trimmer, said the reform will increase social acceptance of the plant. He expects adoption to rise in 2022, which will lead to increased retail demand.

Bruggemann calls the moment “exciting” and believes consumers will look beyond big brands. “Since many consumers would rather support independent farmers than corporations, the market will continue to flourish with private businesses in the next year and beyond,” predicted Bruggemann.

A growing market drives consumer demand

Investors and operators alike assume that the growing number of the market should continue into 2022.

In a November interview for a previous article, Brian Jansen, President of Bellrock Brands Inc. said he likes the dynamism of the market.

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“I am confident that we will see further normalization across the country over the next twelve months,” he said.

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Todd Green, director of investor relations at Jushi Holdings Inc., suggested a similar opinion. “I look forward to seeing the cannabis industry continue to flourish, nurture and maintain more careers, and expand access across the country,” he said.

In November, Morgan Paxhia, Managing Director of Poseidon Investment Management, Benzinga told Benzinga that he was also looking to expand: slowing the cycle. “

He added that tax rates should be lowered and states should reconsider the rules.

Continuous technical innovations

Cannabis technology continues to be rolled out and refined, affecting sectors from cultivation to regulatory compliance and more. Several operators said 2022 will be a significant year for their technology areas.

Marion Mariathasan, co-founder and CEO of the regulatory and operational compliance software platform Simplifya, believes 2022 will be the year Reg-Tech takes center stage.

TIED TOGETHER: How technology is changing cannabis

“Reg-Tech has the potential to play a critical role in simplifying the ultimate challenges of working in an ever-changing, fragmented regulatory environment,” he said.

Mariathasan added that technical enhancements allow banks and other auxiliary services to operate and comply in the high-risk sector.

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Brett Stevens, CEO of LED grow light company Fohse, said an increased focus on sustainability means more states could enact laws to get rid of HPS (high sodium pressure) lamps.

“As an emerging industry, we need to set standards and try to develop better, more sustainable products,” said Stevens.

In 2021, Fohse recorded sales growth of 510%. It has also partnered with Belushi Farms to add LED grow lights to its Rogue Valley location.

Relocation of production towards the full spectrum, solvent-free

Sources say product developments continue as brands compete to improve the consumer experience and meet changing market demands.

Lo Friesen, founder and CEO of Seattle-based extraction brand Heylo, noted that consumers are becoming more educated about THC levels and whole plant experiences. The rise in education leads to a reported shift in production processes.

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Still, the market education remains. “Cannabis dispensaries and consumers continue to fixate on THC levels as a measure of effectiveness, a practice that provides sub-par experiences and limits the potential effects that can be achieved by consumers,” Friesen said.

Christine Shollenberger, VP of Marketing for Michigan-based Fluresh, is excited about the growing popularity of fast-acting edibles and other products.

“As more states legalize and more new consumers enter the market, the range of fast-acting products will continue to grow exponentially,” she predicted.

Shollenberger said she believes further reform will increase interest in high quality artisan products made from living resin, full-spectrum and solvent-free extracts.

This article originally appeared on Benzinga and was republished with permission.