In 2017, cannabis brought in an astounding $7.1 billion with market predictors estimating that number will climb to $21 billion by 2021. Already, 29 states including the District of Columbia have legalized cannabis on a medical level. It’s been forecasted that with a few more elections, half the states in the country will be able to obtain recreational marijuana.
With these numbers come trends that cannabis growers, distributors, and marketers all must follow. As of 2018, there’s been stricter regulation and testing surrounding legal market. This is due to the fact that customers are well-educated and know exactly the quality of product they want.
Why and How Are More States and Countries Legalizing?
A lot of those trying to start a cannabis business like to assume that states and countries are seeing the amount of money that can be made from an industry as such. And those these are undeniable assumptions, there’s much more to it than just that.
For one, and probably the most important, is more scientific research is being done on cannabis. With that, more and more political figures are realizing the medical benefits of marijuana and even hemp have for people suffering from a variety of illnesses, diseases, and pains.
Earlier, it was mentioned how cannabis’s income is expected to rise significantly by 2021. Interestingly, predictors of this number don’t believe that number will peak due to recreational legalization. Rather, much of the profit we’re already seeing being made has more to do with cannabis’ medicinal purposes.
Still, if recreational marijuana isn’t expected to bring in as much money, why would states and countries continue to push legalization?
Lawmakers are noticing trends in states which are already legalized. In North America, between 70% to 75% of the marijuana trade currently happening is still illegal. However, in states where cannabis has been legalized, that illegal distribution dropped to around 30%. There are political factors at play that can be vital to the industries growth and expansion.
But those who consider joining the cannabis industry shouldn’t just look at these trends. For with states allowing more people to grow and produce comes stricter procedures in terms of health and safety.
Who Are Tomorrow’s Top Producers?
Currently, the market is honoring those who succeed in lab testings and practice environmentally friendly growing. This constitutes as the following:
- A lack of pesticides in lab screenings.
- No production within the vicinity of molds, pests, and/or diseases.
Growers and businesses who violate these rules will begin seeing more regulation on their sales. Furthermore, the main reason these rules are being put into place is for the sake of developing healthier cannabis while allowing the consumer to purchase it at a lower rate.
In order to become apart of the cannabis industry in 2018, you’re going to want to keep in mind everything this blog entails. As legalization continues to spread, so will be enforced lab testings with higher expectations.
However, there’s more to it than just passing a lab test. In fact, the true goal of new producers should be to go above and beyond lab testings. This includes creating or distributing top-of-the-line appealing products and having an aesthetically pleasing touch to your brand.
Those understand that they need to be reaching for the highest standards possible will be rewarded with:
- High margin pricing
- Consistent success in lab screenings
- An opulence brand ownership
- The reputation of having higher-ranking products
These points are important to note when discussing the industry market report as new business owners and growers are seeking their way to have the highest success in this industry that’s expected to triple in profit within the next 3 years.
When deciding to enter the cannabis industry, there are a lot of factors at play. Furthermore, marketers are continuously finding new factors rise out of nowhere. Since this industry is expanding rapidly, it’s vital that successful businesses always keep an eye out for what’s next to come.