The legal cannabis market continues to grow and evolve and we can expect many more changes in 2020. With so many outside factors affecting the industry, it can be tough to predict where the market will turn. Here we’ve gathered five predictions from cannabis industry experts.
Turbulent Adult-Use Markets
“The new adult-use cannabis markets in Illinois and Michigan can expect a turbulent 2020 with many of the same speed bumps and detours as California and other legalized states. Likely obstacles include larger than anticipated consumer demand and product shortages, testing facility missteps, product recalls, emergency regulation revisions, licensing bottlenecks, sharp increases in business vs. business litigation, unintended consequences of heavy taxation, illicit market growth, allegations of corruption, social justice and equality disputes, and much more.”
East Coast Legalization
“In 2020, keep an eye on the east coast too. In the New York state legislature lawmakers promised to push for legal recreational use in 2020, after legalization efforts fell apart over disagreements about regulation policy in June. After similar struggles to craft policies that accounted for decades of racially disproportionate drug policing, New Jersey will put the question of legalization to voters in November 2020. The governors of those two states convened with those of Rhode Island, Connecticut, and Pennsylvania in October, in an effort to come up with coherent and cohesive policies on taxing, social equity, public safety, and regulation. The meeting indicates a serious intention to move forward, but also hints these leaders won’t be in favor of rash or sudden moves.”
Medical’s Return to Prominence
“It could be a back-to-the-future where medical cannabis could become more prominent. Medical was so important in getting the cannabis industry up and running in the early part of this decade, and then we went all-in on adult use. A lot of the people who are going to adult-use are now looking to see how they can use cannabis for wellness and true medical purposes. You’re going to see a lot of states vote on medical cannabis in the 2020 elections, and you’re going to see a lot of great technology on the medical side.”
Higher Sales Numbers
“Due to the fact that cannabis is now legal in 10 states, there’s likely to be more sales than ever! In fact, more than 400 million dollars worth of cannabis was sold on July 4th of this year! Some experts say that the cannabis industry has the potential to grow to as much as 130 million dollars per year in the near future. This isn’t likely to happen during 2020, but this figure shows just how rapidly the industry is growing.”
Large Companies Continue to Grow
“Regardless of year, the trend is always “the big get bigger.” Solid companies, such as Have a Heart, GW Pharma, Charlotte’s Web, and others — Green Sky Labs, Headset, Harvest Health & Recreation — will continue to grow, but smaller companies will continue to have an uphill battle. Like alcohol, fashion, and retail, size matters. It is hard to be profitable and return value to investors if you have a limited market. Investors are also wiser realizing just because a company is entering the marijuana space, it doesn’t guarantee you a bountiful return. Expect to see an increase in mergers, buy-outs and company closings.”
