Top 5 Cannabis Market Trends In The USA
There’s no point in denying that cannabis is a thing now in the USA. More and more states decide to legalize it in some way and the number of people trying it or trying to make money on it is only growing - and it will continue to do so. If you live in a place where it’s legal, you probably have the impression that you see it everywhere or heart about it from every direction - and you’re probably right. The global marijuana market is expected to surpass $70 billion by the end of 2025 with almost half of it staying in the USA. As you can see, it’s developing extremely fast and it’s not always easy to predict the direction it will be heading in the nearest future. Not only will the cannabis market continue to grow, but many more changes are on their way. So what will be trending in the USA?
CBD will Continue to Grow in Popularity
CBD has been the talk of the town for some time now, and presently, it’s probably a bigger thing than THC. It’s mostly because of two things: in 2018 FDA (the Food and Drug Administration) approved Epidiolex, the first CBD-based drug, and, in the same year, the cannabis compound, which is high in CBD but low in THC, called hemp was legalized for commercial production in the USA. Because of all that scientists and companies started to research and clinical trials in order to find cannabis-based treatments for a variety of diseases, e.g. depression, sleep disorders, anxiety, or even cancer. Also, because there are fewer restrictions as to selling and buying CBD, dispensaries aren’t dominating the cannabis market anymore. The number of companies entering it is only growing, just like the number of CBD infused products - cosmetics, household items, beers, creams, and many, many more. It’s enough to go online and type into your browser something like dispensaries in the Sahara Las Vegas menu to get a grip of what’s really out there to choose from.
The Laws regarding Cannabis will Continue to Ease
The situation is still unclear to many people so a lot of them hesitate. It’s hard to know when you’re safe and when you should fear federal prosecution, you can’t really use any banking services in this industry, and there’s no certainty as to CBD being added to food. That’s why there are new laws working their way to being introduced soon. First will be an amendment to the STATES Act which will take cannabis off the state’s legal activities from the Controlled Substances Act which will ease the federal prohibition of marijuana. It will be moved to the state level. Then, the SAFE Banking Act will allow banks to accept money from legal cannabis companies (which still isn’t the case). The FDA is also working on regulations and rules applying to the use of CBD.
The Legalization Movement will Spread
According to statistics, two-thirds of American citizens actually support federal legalization of marijuana, and public support is only becoming stronger. Plus, supporters are expected to grow in number, as people are getting more and more aware of the benefits of cannabis. It has recently been legalized for medical and recreational use in Illinois, but the activists don’t stop their work there. It’s expected that marijuana will be legalized in Connecticut, Rhode Island, New Mexico, New Jersey, New York, New Hampshire and Minnesota in the near future. What’s more, Vermont, which has already legalized home cultivation and possession, may soon give a green light to the dispensaries.
There will be More & More Diversity in Cannabis Customers
We can be sure that the number of customers will grow, but we can also expect that they will be more diversified, and their reasons for using cannabis will be different, both medicinal and recreational. For example, because of people getting more aware of the benefits of marijuana use, there will probably be older customers; also, more females are expected to try it. Therefore, they will vary as to how much they are willing to spend on cannabis. Now, people spend an average of $25-$50 per visit, and only a small portion of all customers spend more than that, but there are a lot of those who buy for less than that. The time will show which group will grow in numbers significantly.
Canada and other Countries will Contribute More to the Market
Canada has decided to legalize the adult-use of cannabis and the Canadian market has been developing very quickly ever since; it’s expected to hit almost $5 billion by 2024. Therefore, it’s believed that restrictions regarding the distribution and marketing of cannabis-based products will ease with time, and it will open for American companies. It will take time for the companies to adapt to this new situation, and there’s also a threat of liberals finally losing the federal elections - nobody really knows what it will bring.
Meanwhile, the cannabis market is ready for global expansion. It’s expected that markets other than American and Canadian will expand their contribution to global legal sales from 4.7% to 13.2% by 2024. Germany is now the leading region in Europe, but, when it comes to overall legal adult-use, the absolute leader is Uruguay. Apart from them, Luxembourg, Mexico and New Zealand are expected to have adult-use sales by that time.
There are also changes coming in Asia and Africa. Medical use of cannabis will soon be legalized in South Korea in Thailand, while Lesotho, South Africa, Zambia and Zimbabwe are working on their own programs.
Due to that, some people believe that the production of cannabis-based products may shift from the USA to Africa and Latin America.
Cannabis may still have its opponent, but no one can say that it’s irrelevant. New markets are emerging, existing markets are growing and we can be sure that they will keep evolving and gaining supporters. Especially considering that it becomes more and more profitable. It is the future, whether people like it or not.
CBD AND CANNABIS TRENDS, READ MORE...
WHAT ARE CBD MARKET TRENDS RIGHT NOW, CLICK HERE.
OR..
