It is no secret that the cannabis sector is rapidly growing and evolving. We saw a lot of changes in 2021 – more than what we could have anticipated. So what is 2022 going to be like for cannabis? Here are our 5 predictions:
1. The International Market Will Continue To Expand
Cannabis will become more widely legal around the world. In Europe, this trend is already noticeable:
– Cannabis will be legalized in Malta. Among other things, its citizens will be able to grow marijuana at home.
– In Germany, the new coalition government has stated that the controlled selling of cannabis for recreational purposes in licensed stores will be legalized.
– The government of Luxembourg plans to legalize recreational cannabis for personal use, allowing for seed growing, possession, and sale.
We’ve also witnessed developments in Mexico, where efforts to legalize marijuana look to be gaining ground. A draft of a legalization bill has been circulating among Mexican senators, with high hopes for its adoption.
In Australia, a poll indicated that 41.1% of Australians think cannabis should be legalized, a considerable increase from 25.5% in 2013.
According to experts, the largest national companies in the United States will begin to compete for places in a future global market and will begin to set up for the type of importing and exporting that is now happening in other nations.
2. People Will Gain Interest In Other Cannabinoids
The way recreational users utilize cannabis has changed dramatically over the years. In the past, the majority of recreational consumers sought cannabis products with high THC levels and strong psychoactive effects. Although THC remains the most popular cannabinoid, customers will be more interested in minor cannabinoids like CBG, THCV, and THC-A in 2022. There has been a significant increase in the number of customers demanding more balanced, moderate, and functional effects. Not to forget first-time users and those interested in utilizing cannabis for wellness. Cannabis businesses can capitalize on this interest by using effect-based marketing to help customers get the exact cannabis experience they want.
3. Cannabis Marketing Is Changing
If you’re familiar with the cannabis market, you’re probably aware that there are a variety of products available, ranging from tincture droppers to CBD balms. In cannabis, as in any other industry, establishing an emotional connection with customers will be critical to success. However, in the marijuana industry, businesses must also cultivate a solid relationship with budtenders, who have a substantial influence on consumers’ purchasing decisions. Consumers are also becoming more educated about THC content and cannabis experiences, which has led to a noticeable shift in production processes.
Picture credit: Elsa Olofsson
In 2021, companies developed their ability to conduct effective marketing campaigns that appeal to consumers and budtenders at all levels. 2022 will be no different, with a plethora of new products available to consumers. Companies will keep branding specific strains, concentrates, and other cannabis items for B2B and B2C markets, as the branded cannabis trend continues to gain traction.
THC beverages are currently the most talked-about and anticipated products. The topic is also drawing the attention of large corporations.
4. Tech Will Play A Major Role
Every industry has benefited from technological advancements, and the cannabis industry is no exception. We expect to see an increase in the number of tools and products that use data and new technology to improve the cannabis experience. Technologies that manage production, for example, will enhance the marketing process and increase sales.
Staying compliant can be a difficult task for businesses due to the fragmented regulatory environment, but that it could be overcome through the development of advanced technologies. Simplifya’s CEO Marion Mariathasan believes that the year 2022 will be the year when regulatory technology comes to the fore. Reg-tech can simplify the issues that arise from operating in a continuously changing, fragmented regulatory environment.
According to him, technological advancements will enable banks and other ancillary services to collaborate with and comply with the high-risk industry.
5. New Regulations Are To Come
As the industry expands, it must adapt to a rapidly changing and complex legal environment. The challenge for cannabis businesses is that different states in the United States, as well as other countries, have different rules regarding the legality, consumption, distribution, and cultivation of cannabis.
Both producers and investors expect the market to continue expanding in 2022. As the products become more accessible, buyers will be pulled away from the illegal market. That was a recurring trend in 2021. We anticipate that trend to continue in 2022.
Another interesting thing we have been able to see is that there have been far more cannabis regulations than anyone anticipated due to the Covid-19 pandemic. They moved quickly because jurisdictions have suddenly found themselves in need of additional funds. They have budget deficits to address, and they’re beginning to realize that cannabis is a wonderful way to collect more tax money.
The constantly changing regulations can become overwhelming for a cannabis business – but it does not have to be. Simplifya is here to help, sign up for a demo today!
These are all very safe assumptions.