For a very long time, the cannabis industry was dealing with an unearned bad reputation and notoriety struggling to get a wider acceptance. These days, however, things are slowly taking a turn and a growing number of countries are making weed legal. If we, for example, take a look at the US we will see that these days, 33% of Americans have access to legal marijuana with the industry being legalized in 12 federal states.
This growth creates a lot of interesting market opportunities and trends that ambitious entrepreneurs can tap into to push their companies forward. Let’s take a look at some of the most critical mentions.
The cannabis market will grow
Even though a number of American states have outright legalized the use of recreational weed, this product is constantly getting wider support and customer base. Back in 2019, the Americans spent then record-breaking 400 million dollars on marijuana only for the July fourth weekend. So, the interest is there and new legalizations should soon follow. So, it shouldn’t be a bad idea to start setting your company up for growth and adding a certain level of scalability to it. Moving the infrastructure to Cloud and switching to subscription-based pay-as-you-go services should solve some of these issues.
Branding becoming a critical marketing component
For a very long time, the cannabis industry was riding on a sense of novelty. These days, however, when the novelty is slowly wearing off and weed is sailing into traditional corporate waters, the novelty is wearing off and we are seeing an ever-growing number of companies, such as LeafandHemp, investing in corporate branding in order to stand out from the crowd. With that in mind, traditional branding strategies like coming up with an appealing personality and logo, as well as embracing some social cause should prove to be of much help here. Also, starting a blog should help your company to give these ideas a voice and a powerful platform.
Diversifying the market
The wider acceptance of legal recreational marijuana will inevitably push this product deeper into the mainstream waters, which, in turn, will put weed into the traditional retail framework allowing companies to leverage this product in new and creative ways. If you are, for instance, living in Massachusetts, you can already use professional Boston weed delivery to get the product to your front doors. The weed industry should also use its strong retail starting position to expand to new interesting sectors like tools and accessories, dispensaries, cultivation, restaurants, cooking classes, delivery, and other mentions.
Market consolidation and refocusing
Unfortunately, even though we have said that the process of legalization is leading to weed market expansion, this new sense of well-being will not be equally felt by everyone in the industry. For instance, a Draconian 800$ per pound tax that was issued for cannabis growers in Alaska is slowly strangling this small booming sector out of existence. Of course, these measures won’t effectively purge marijuana production out of Alaska, but it will cause many small companies and independent farmers to fold and leave a way for companies with deeper pockets and nationwide infrastructure and customer pools.
Mergers and acquisitions
Last but not least, we would like to point out that the process of weed market consolidation we have mentioned above will cause an entire slew of mergers, acquisitions, and other changes in ownership structure. In such situations when the complete market outlook can be changed over the course of a day, the market position won’t have such a critical impact on how investors, partners, and future owners look at the value of one company. Instead, this focus will shift to IPs and other assets that can be easily repurposed and franchised. Therefore, smaller companies should try to invest much more effort in branding, building communities, and other strategies that make them distinguishable from competitors.
We hope these few mentions gave you a general idea about the direction the weed market will be heading in the following period and how you can use these trends to help your company grow. Even though the cannabis market is constantly growing and expanding, this evolution is not devoid of certain growing pains. In order to succeed you need to leverage both these facts to the benefit of your business. Well, now you know where to start.