With each passing year, the cannabis market keeps growing. This is true for both methods of production and consumer behavior.
Right now, 36 states and four territories have approved cannabis for medicinal use. States such as New Jersey, Montana, and Arizona now allow marijuana for adult-use. The new laws are proving what we all suspected: the stigma around cannabis is fading away.
Where does the market go from here? Here are four key cannabis industry trends that are set to play a role in this particular race.
- High-THC Strains
Each year, marijuana growers and breeders choose which strains they want to grow. Over the last few years, the consumers responded with an increased demand for high-THC strains. Their formula is simple enough: highest THC for the least money.
This forces the cultivators to keep up with the game and keep producing high-THC strains. The alternative is to try and stay ahead of the market. With new strains showing up all the time, the preferences in the industry keep changing.
- Banking Access
Experts believe that the Senate is close to allowing banking access to legal cannabis businesses. This will have a huge impact on the entire cannabis industry. Transactions would become easier, valuations may increase, and investment would skyrocket.
This would also allow cannabis companies to secure a bridge loan from the bank. Right now, their best option is to take a hard money loan, which comes at a high-interest rate. Banking access would also help the industry scale up and maintain market share.
- The COVID-19 Influence
The pandemic affected everyone on the planet, forcing many industries to shut down. Fortunately for cannabis businesses, state leaders recognized the industry as essential. That said, cannabis operators still have to address the new requirements.
For starters, many retailers who weren’t delivering before have started doing it. At the very least, they now offer curbside pickups and drive-through transactions. The stores feature display cases everywhere, which can make it harder to evaluate products.
The good news: COVID-19 has done little to offset cannabis production. For instance, hemp processing and extraction facilities remain hard at work.
- Further Legalization
With the increased legalization of cannabis, it’s only a matter of time before other states follow suit. In 2021, two very large markets could come online. One of them is Texas, where legal cannabis could produce over $1 billion in state tax revenues.
The other big market is New York, where the pandemic had a huge economic impact. The city is hopeful that the cannabis tax revenue will help with recovery. Plus, with Pennsylvania and New Jersey allowing legal cannabis, it’s hard to see New York missing out.
More on the Cannabis Market
All evidence shows that 2021 will be a monumental year for the cannabis market. After taking an initial dip, cannabis stocks are now posting impressive numbers. In combination with political changes, market growth is set to soar.
Want to learn how to invest in cannabis? Interested in other industry drivers for the following period? Keep reading our marijuana-related content!
