It’s been a tough year for cannabis investors in 2022, but the industry has also made a lot of progress.
According to the data analysis, researchers worldwide published more than 4,300 studies on cannabis and its components in 2022. This illustrates the exponential growth of scientists’ interest in studying cannabis in recent years.
The knowledge of the plant, its active ingredients, its mechanisms of action, and its impact on users and society has also grown exponentially.
Significant uncertainty remains in the cannabis market in 2023. Price compression and competition from the illicit market will continue to be a challenge for operators in 2023.
In the short term, the risk of bankruptcy and financial instability remains, but the stability and opportunity for long-term investment in the cannabis industry are certain.
Looking ahead to 2023, these 10 trends in the global cannabis industry are worth highlighting.
1. Spotlight on Innovative Beverages
Based on sales data, the majority of cannabis sales have been flower-based. But as consumers see the value of replacing alcohol with a CBD or THC drink in their hands, and as demand for tasty beverages and foods surges, flower-based sales are dwindling.
Cannabis companies are responding: there are now more delicious cannabis foods and tasty, refreshing beverages available to consumers. Beverages with cannabinoids are a safer alternative that doesn’t bring on nasty hangovers. Filled sherry is now a new trend. in 2022, cannabis beverages will be the stars of major trade shows. And it will continue to strengthen in 2023.
2. The Price will Become Cheaper
As legalization continues to spread, it has led to a drop in the price of marijuana in the United States. Recreational consumers and medical patients alike now have access to cheaper cannabis than ever before without sacrificing quality. This is not necessarily good news for smaller brands, but the price of top-quality cannabis remains high.
3. More Cannabinoid Products to Come
Some of the cannabinoids we are starting to see include THCV, CBN, and CBC. as we learn more about cannabis and the various cannabinoids and terpenoids it contains, we find that CBD and THC are not the only valuable compounds in the plant.
There is a growing interest in other cannabinoids that have proven therapeutic benefits, leading breeders to strive to create strains that contain more of certain cannabinoids. This phenomenon has attracted a portion of competent cannabis investors to grow, indoor cultivation design, and use LED lights for cannabis growing to create a favorable growing environment. Expect to see more terpene-focused products in 2023.
4. Marketing Keeps Pace with Entertainment
Cannabis brands and dispensaries are turning to fun, interactive digital media for marketing. The initial investment in these types of marketing is undoubtedly expensive, but it will be worth it.
Imagine bright, instantly programmable screens in dispensaries dropping videos of cannabis farms. Customers can learn about cannabinoid and terpene content through AI or 3D. Yes, customers will enjoy it.
5. U.S. Political Uncertainty
Since 2022, both the marijuana legalization bill and the marijuana banking reform legislation have passed the House of Representatives. Unfortunately for advocates, with the exception of the cannabis research bill signed by Biden, none of these bills have translated into passage in the Senate.
The task is likely to continue to be challenging in the next Congress. Recently, Senate Majority Leader Chuck Schumer (D-NY) also made a commitment to continue working on federal marijuana legalization in 2023.
6. Some U.S. Marijuana Cross-State Operators to See Significant Cash Flow Boost
Currently, 21 states in the U.S. have legalized adult-use cannabis and 39 states have legalized medical marijuana. U.S. cannabis interstate operator companies have solid balance sheets, operate efficiently, and have higher profit margins. Cross-state operators’ massive capital expenditure programs are expected to come to an end, which will drive a significant increase in cash flow for these companies.
7. New York State Adult-Use Cannabis Sales in the Spotlight
Sales in established markets will continue to decline in the new year while emerging markets such as New York and New Jersey will see strong sales growth. Experts predict that more states will launch marijuana markets in the U.S. in 2023, with New York undoubtedly the most talked about. The opening of New York State has the potential to upend the status quo in the cannabis market.
8. Inflationary Shocks will Gradually Subside
Inflation affects every industry, and the impact on cannabis is reflected in consumption patterns and prices. According to the analysis of financial experts, the change in consumption patterns affects the adjustment of fundamentals among the cannabis investment logic. Cannabis consumption will pick up in 2024.
9. In Canada, Surviving is Winning
The Canadian cannabis market remains challenging, dampening investor interest. In the future, the Canadian cannabis industry will be defined by the companies that survive, and those that go through the screening process will expand their market share.
Experts say the Canadian cannabis market still needs to be slimmed down and further weeded out excess capacity and retail distribution points.
10. Legalization of Cannabis in Europe
The potential of the European cannabis market has been a hot debate among cannabis investors. Germany is heating up with expectations of approving adult-use cannabis sales in 2023 and is fast-tracking revisions to cannabis-related regulations.
Encouragingly, some European countries are also looking at Germany and have announced their own plans to legalize cannabis. Currently, the only cannabis markets are the U.S. and Canada, and legalizing cannabis in Europe would improve the diversity of the cannabis market.