For the marijuana industry, last year was a major transformational year with some states legalising it for medicinal or adult recreational use. It boosted the industry and the legal pot sale figures hit $7 billion in North America.
The momentum is still continuing and some ongoing trends are at the forefront in shaping up the industry.
1. Banking Services
Despite showing potential of growth, the industry is primarily operating on a cash-only basis. Some high-profile lawmakers have recognised the money that is lying on the table in the form of processing fees, tax revenue etc. and thus pushing for the reforms in federal banking guidelines.
2. Consolidation Taking Place
Till the time pot business was illegal, there were financial risks associated with it and the businesses were running on a small scale. Now with legality coming into force, the deep- pocketed investors have made their entry resulting in consolidation in the industry with small operators either merging or folding into large ones.
3. Emergence of Brands
With big money flowing in the emerging legal cannabis industry, it is growing at a rapid pace with brand leaders soon to appear on the circuit. It is a normal practice that when an emerging industry hits an efficiency threshold, brand emergence and consolidation happens.
4. Pot Prices Receding
With twenty-eight states legalising cannabis in one way or the other, both the number of cultivators and the volume of the cultivated space have expanded significantly. Following the universal law of demand and supply, the pot prices have come down at many places.
5. Ancillary Business Boom
Whenever an industry starts expanding, it creates an equally big market for the ancillary products and services. Cannabis is fast becoming a part and parcel of the daily routine of many either for medicinal or recreational purpose. Thus, the markets for portable vaporisers, dab tools and edibles are on the rise. There are a variety of cookies, chocolates, breath mints, coffee etc. infused with cannabis available that can be enjoyed in public places easily.
People are finding means and ways to get involved with the emerging industry in one way or the other. It is expected that by the year 2020 there will be around a quarter of a million jobs in the legal cannabis industry.