Identify the 3 biggest challenges the cannabis industry faces as it moves into 2022

Accepted Sales figures Having posted marijuana over the past year, it’s hard to imagine that there were any obstacles to overcome at all. The cannabis industry was expected in both 2020 and 2021. In fact, the total legal cannabis market is expected to total $ 70 billion by 2028.

Even if the young industry has high goals, they cannot be achieved without overcoming a few hurdles. Here are some of the biggest challenges it will face in 2022.

Market volatility as new players continue to enter the industry

Given the amount of new markets that have legalized cannabis in recent years, it’s no surprise the space is getting more crowded. Entrepreneurs everywhere have recognized the lucrative opportunities of the cannabis industry. In the second half of 2021 alone Investments in cannabis saw an 85% increase.

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With the potential revenues that can be generated from investing in the cannabis industry known, it is only natural that new businesses will join the battle at some point. When new investors get involved, it is likely that they have false expectations of when they will be able to generate returns. These imprecise expectations for a quick return on investment, as well as the lack of regulatory action, ensure that the volatility currently prevalent in the cannabis industry will continue to be an obstacle through 2022.

More competition from brands that make synthetic cannabinoids

Another obstacle the cannabis industry must overcome in 2022 is increased competition from manufacturers of Delta-8, Delta-10, and THC-O products.

One of the main reasons the synthetic cannabinoids market poses a threat to the recreational marijuana industry is that many states allow these types of products to be sold online. The fact that synthetic cannabinoids, like any other consumer good, can be easily ordered means that they are more readily available to most consumers than recreational cannabis products. This could offer a level of competition throughout 2022 that the recreational cannabis industry may or may not want to combat.

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Determining What Consumers Expect From Cannabis Brands

In most consumer goods industries, getting to the heart of customer sentiment is as easy as sending an online survey. However, with the vast majority of transactions in the cannabis industry being personal and cashless, it’s hard to imagine what customers would change about their experience with a cannabis brand. Still, recreational cannabis brands are tasked with staying ahead of the curve when it comes to meeting customer needs. The cannabis brands that are able to do this effectively will be well placed to stay ahead of the competition.

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With recreational cannabis sales still being illegal at the federal level, it is difficult to keep in touch with customers to gauge their satisfaction. Keeping customer data at hand is almost impossible without POS systems, but creative cannabis entrepreneurs should be able to find other innovative ways to tap into the heart of customer sentiment.

When most people talk about the recreational cannabis trade, the main focus is on how exciting it is to see the industry growing so fast. Unfortunately, that’s only one side of the coin. The challenges are clear and will not be easy to master. Nevertheless, 2022 should also be one of the most exciting years for the young, up-and-coming industry.