The marijuana market has seen exponential growth in recent years, and there is no sign of this growth stopping. In the last two decades, we have seen the legalization of marijuana for recreational use in 9 states, including Washington D.C. And more are following suit every year. As a result, there are well over 1 million people who call themselves “cannabusinesses”, and this includes everything from plant growers to dispensary owners and even weed friendly lawyers. According to ArcView Market Research, this industry is estimated to be generating about $10 billion a year in sales. If you’re wondering what the driving force of sales are in the cannabis industry, you can blame it mainly on legalization efforts that have added a layer of legitimacy and safety standards for consumers. If you are a keen investor, keep reading to discover the trends in the marijuana market.
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Many Different Products
Thanks to legalization, there are now many cannabis products on the market. Some of the most popular and profitable of these products include edibles, tinctures, and vaporizers. There are also a wide and growing range of consumption methods that are very popular in the industry, and the most commonly used cannabis consumption methods include:
- Joints: This is the most popular cannabis consumption method and involves the process of inhalation. To consume a joint, you are required to burn the weed using a flame and this process, called combustion, has many health risks including lung cancer and upper airway cancer.
- Dry herb vaporizers: These are also inhalation devices, however, they produce vapour instead of smoke and the process does not involve combustion, instead it uses heating methods, which makes this a healthier way to consume. If you’re interested in these devices, you can learn more about them at Magic Vaporizers.
- Edibles: Edibles are one of the most popular cannabis consumption methods that involve food, baked goods, and drinks that are infused with cannabis. When you consume edibles, they get processed via your digestive system and liver, which produces very intense and potent effects that can last upward of 12 hours.
- Tinctures: Tinctures are a liquid that gets created when dry cannabis is dissolved in alcohol. You consume this product sublingually by placing 2-3 drops of the tincture underneath your tongue, and then swallowing after about 2 minutes.
- Topicals: Topicals are another very popular cannabis consumption method that includes lotions, oils, creams, etc. that contain cannabis. You consume topicals by applying it directly onto the surface of your skin.
Increased Knowledge
Since legalization, people are no longer in the dark about cannabis. There is an influx of information available online that people can now easily access, and this has created a consumer base that is highly knowledgeable about many things relating to cannabis, including consumption methods. This puts pressure on the industry to be highly knowledgeable, as well as to provide the customer with exactly what they want. Cannabis stores need to employ knowledgeable staff who are able to engage with knowledgeable customers.
Improved Growing Methods
Better growing methods is another trend we are seeing in this industry. When we look at indoor growing, traditionally HID and HPS bulbs were used as grow lights. However, LED grow lights, such as cob lights, are being used which are more affordable and use electricity more efficiently. Overall, the industry is embracing more eco-friendly ways to grow cannabis both indoor and outdoor, which sustains the health of the customer and the environment.
Legalization
There is a rapid spread of cannabis legalization around the U.S. Currently, 18 states have legalized this substance for recreational use, while medical cannabis has been legalized in 37 states. There are many states that are candidates for the next wave of legalization including Texas, Virginia, Rhode Island, and New Mexico, to name a few. Some states have already begun by decriminalizing cannabis, which demonstrates the pressure on states to legalize due to the growing demand and information available that supports the medical benefits of cannabis.
More Banking Options
We can expect to see increased banking options for stores in the future which have not been available because of the strict laws against cannabis that could put banks at potential risk. Banks allow cannabis businesses to accept credit cards, set up deposit accounts, acquire loans, and pay taxes which makes it easier for the state to monitor the cannabis economy.
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