The biggest challenges the cannabis industry will face in 2021 and beyond

By Tia Moskalenko

No matter where you live in the United States, it’s safe to say that the cannabis industry has come a long way in the past few decades.

If I had told you at the start of the new millennium that recreational cannabis was legal in 18 states and medical marijuana was legal in 37 states, you would most likely have laughed in my face and told me to go for a hike. If you had been a police officer at the time, you might even have arrested me and charged me with possession.

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But all jokes aside, marijuana is now legal in many US states for both medical and recreational use, as well as other countries like Canada, South Africa, the Netherlands, and more!

But despite this widespread legalization of cannabis in the US and abroad, the industry still has a long way to go in establishing itself as the titan it really could become.

What changes, trends and challenges do we expect in the coming years?

Especially as new laws and regulations are constantly evolving that affect consumer buying habits and the overall sales and profitability of a business in today’s cannabis industry.

In the following article, we examine some of the biggest challenges that experts predict will dominate the cannabis industry in 2021 and beyond.

Industry forecasts for Big Cannabis in 2021

As the cannabis industry continues to develop, only growth and great strength is expected in the coming years, with experts predicting the market value could reach $ 30 billion by 2025.

In legalized states and jurisdictions around the world where cannabis was deemed legal, laws governing the production, distribution and wholesale sale of cannabis will continue to dominate the news.

Before we see the markets stabilize, however, we should still expect a lot of volatility in laws and regulations at the industry level, especially in jurisdictions like the United States, where different states have different regulations for cannabis. However, at the federal level, it is still considered illegal.

With this paradox, cannabis companies should expect many changes in terms of regulation in the years to come.

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Startup financing, cannabis financing and banking will continue to be an issue for countless smaller companies in the industry, especially as cannabis awareness continues to rise and the industry establishes itself as an “addiction industry” alongside the tobacco and alcohol industries.

But even with these challenges ahead, experts believe the overall outlook for the cannabis industry remains solid and that investors, businesses and consumers alike should only expect more signs of strength in the future.

The importance of controlling the cannabis industry

Many cannabis advocates want you to believe that the government shouldn’t be involved in their or anyone else’s marijuana use. They might even trick you into thinking that the government is legalizing it just because they want to cut the market off.

The truth, however, is that regulations are critical to keeping both consumers and cannabis companies safe.

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And there are just as many cannabis advocates today who believe that passing better laws and regulations is the only way to make the industry a safe place for consumers and cannabis companies to live together peacefully.

In the United States, prior to the decriminalization of cannabis in states like Washington and Colorado, there were very few, if any, laws relating to the production, processing, or sale of cannabis and cannabis products.

On the other hand, there are many laws and regulations in place today to oversee the sale of cannabis in legalized jurisdictions. And with it, consumers are reaping the benefits of having access to better, higher quality cannabis products than ever before and a wider variety of cannabis products readily available from brands and pharmacies.

In addition, we expect consumers to become more aware of marijuana and cannabis products.

This heightened awareness will eventually result in cannabis brands and companies having to adapt to changing consumer behavior, creating economic impetus for other sub-sectors such as manufacturing, distribution, marketing and advertising, e-commerce, and many others that are fast Enter the market will benefit from mergers with the booming cannabis industry.

Boost the economy with pot

There’s also a lot of good things to be said about regulating the industry, considering that tax profits and revenue from cannabis sales alone help boost the local, national, and global economies.

In the United States alone, states like Washington and Colorado have had better than forecast sales in recent years since legalization, which has resulted in quite substantial tax revenues.

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In Colorado, the state collected more than $ 302 million in fees and taxes from marijuana sales in 2019. In the same year, experts estimated sales across the continental United States to be about $ 12.2 billion.

Additionally, US cannabis sales are expected to reach up to $ 31.1 billion after 2021 by the end of 2024 and by 2025.

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For countries like the US, the cannabis industry is on the verge of becoming a sector that can help the national economy recover from the uncertain economic conditions left in the wake of the COVID-19 pandemic.

In fact, according to New Frontier, the cannabis company suggests that state legal cannabis could create more than a million jobs and an additional $ 105.6 billion in total federal tax revenue by 2025.

But even with such impressive predictions for the future, there is still much to be done for the cannabis industry as a whole.

The challenges ahead for cannabis brands

Farmer, wholesaler, retailer, consumer, lover or hater, the laws and regulations that continue to shape the industry will hit everyone.

As an increasing number of states and international legal systems develop their industries, companies should expect changing regulations for the import and export of cannabis products, which can lead to potential price fluctuations at the industry level.

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Consumers should expect cannabis prices to fluctuate. But in general, countries like Canada have seen a general decline in cannabis prices since cannabis was first legalized in 2018.

We also believe that the continued development of the cannabis industry will continue to lead to an increase in corporate mergers and acquisitions with companies from other sectors such as the alcohol, tobacco, food and beverage industries.

For example, it wouldn’t be too unexpected to see restaurants or other establishments in the future that offer cannabis products, similar to beer, wine, and various types of alcohol.

All of this is likely to add both volatility and strength to the industry in the future.

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Ultimately, the biggest challenges the industry should face in 2021 will center on laws and regulations related to the production, distribution and sale of cannabis, as well as laws and regulations related to corporate financing and financing of cannabis companies.

But despite the possibility of volatile prices and any regulatory challenges ahead, industry watchers should only expect better production, better sales, more revenue and safer products for consumers in the years to come.

The future of the cannabis industry

Throughout the day, thousands of cannabis activists around the world campaign for reforms and new rules and regulations that will make the industry safer and more accessible to all, including consumers and cannabis companies alike.

Overall, we believe the industry will stay strong and grow steadily through 2021, 2022 and beyond. But there are still many barriers facing cannabis companies, brands, and consumers in the US and abroad. Still, it’s safe to say that the cannabis industry will remain healthy and will continue to boom for the time being.

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