It’s no secret that the cannabis industry is growing by leaps and bounds. In fact, according to a report by Arcview Market Research, the global legal cannabis market is expected to reach $32 billion by 2022. That’s a compound annual growth rate of 34 percent! So, what does this mean for entrepreneurs and consumers in the industry? Here are four trends you should know about in 2022.
One of the more prominent trends that will be seen in the cannabis industry in 2022 is an increased demand for legalization and increased legalization in general. Currently, there are about 29 countries in the world where cannabis is either legal or at least decriminalized. In America, 38 states have legalized cannabis for medical use, and 26 have legalized it for recreational use, with more planned.
Cannabis Flower is Losing Popularity
Another fascinating trend that cannabis retailers should pay attention to is that actual cannabis flower seems to be losing popularity. The cannabis flower market share has steadily declined over the last few years. Interestingly enough, as the cannabis market share decreases, the cannabis beverage market is actually growing. This could be indicative of a change in product preference.
Increase in Cannabis Cyber Crime
One less-than-positive trend to keep an eye on within the cannabis industry is the potential rise in cannabis cybercrime. Although the rates of cybercrime, in general, have steadily fallen over recent years, there seems to be an increase in cybercrime related to the cannabis industry. This is something that businesses within the cannabis industry need to pay attention to and should consider investing in IT security systems.
Increased Brand Growth
There is some good news, however, and that would be that there is an increase in the growth of brands within the cannabis industry. This increase in brand growth isn’t just limited to popular brands that carry quality edibles, beverages, accessories, and devices – all of which can be found on FAB CBD, but also the various sectors within the industry, such as the cultivation, infused products, and retail sectors. This could likely be because social media is a popular method of marketing for cannabis brands.
The Battle Will Continue
While massive companies always reign supreme in each industry, the cannabis industry seems to have the biggest divide. In 2022, the battle will continue between the massive cannabis companies making most of the profits and the smaller businesses attempting to stay afloat. This divide is most likely due to the extremely high barrier to entry that other industries don’t really have. However, some movements are trying to give social equity to smaller businesses wanting to enter the market.
Opening of Consumption Lounges
One trend that has been noted ever since the beginning of the cannabis industry was that of cannabis tourism. Many people would travel to states or countries where cannabis was legalized to see what everything was all about. Over time, as more states and increases began legalizing cannabis, tourism slowed down slightly. However, cannabis consumption lounges are set to open soon, which will most likely see a rise in cannabis tourism again. This is something that cannabis businesses need to prepare for.
More Cannabis Jobs
Another positive trend on the rise in 2022 within the cannabis industry is more cannabis jobs being in demand. As brands continue to grow, and as more states and countries legalize cannabis, there will be an increase in demand for the cannabis workforce, which should be getting around 100,000 new jobs related to the cannabis industry. This could be anything from packaging technicians to delivery drivers, cultivation associates, or even accountants.
Increased Call for Lower Taxes
Finally, the last trend seen within the cannabis industry in 2022 is an increased call for lower taxes. Taxes within the cannabis industry are very high since, as mentioned, so is the barrier to entry. For example, Alaska growers need to pay an $800 cultivation tax, regardless of the size of the cultivation. Currently, taxes within the industry are so high that many smaller businesses are forced to close.