How will the cannabis industry evolve in 2016?
The last 12 months have disrupted the cannabis industry with new economic opportunities that appear regularly in the United States, and more widely in all countries that have legalized cannabis in one form or another. New markets have emerged; existing businesses have developed in a growing industry.
2016 should see a number of other countries legalize cannabis, medical or recreational, and business opportunities should not stop growing. The cannabis industry has grown a lot the last 8 years, and 2016 is expected to be a decisive year for her.
The landscape of cannabis growers, vendors and all companies in the industry will continue to change, which could be of both positive and negative consequences.
Here are our predictions for the evolution of the cannabis market in 2016.
Cannabis cultivation: overproduction and falling prices
We have already seen some signs of saturation in some markets, which could lead to a war of prices. 2016 could be the year when farmers reach the tipping point.
The amounts of overproduction could be used to supply the cannabis oil market and extractions, resulting in lower prices of weed and cannabis oil.
Some cultivators have already indeed turned towards the purchase of new machinery to produce oil.
Sale: the influence of medical research
One aspect of cannabis that has not yet been fully utilized is its medical properties, mainly due to blocking against serious scientific researches.
This should change rapidly, as also thinks Andy Williams, owner of the Medicine Man, one of the largest clinics of Colorado.
“There is so much to explore that it is almost incredible to think of it. One can hardly imagine the opportunities that will emerge. ”
Medical research will lead directly to the creation of new products for patients treated with cannabis, seriously affecting the products sold by the dispensaries today. Andy Williams expects new products for intravenous feeding, suppositories and other types of non-smokable drugs that have not yet been designed.
Space food: new products
Companies that are engaged in the space food (foods infused with cannabis) have so far only scratched the surface of what is possible. With experience, the creativity of chefs who cook food with cannabis should reveal new products. For the great pleasure of gourmets.
We should also see the growth of markets for beauty products made from cannabis, with the rise of research on cannabinoids, and how they can be used and applied.
Investment: existing businesses have one major advantage
Companies that have launched cannabis for several years should see their efforts and tenacity rewarded. These companies now have everything to attract investors who are also willing to supply millions of dollars to the cannabis industry. The most visible companies should benefit above all others of this cash flow.
Shareholders of companies will also want to take up more space in the management of cannabis businesses, which could create some legal battles.
The global industry: emerging brands and marketing
Before 2015, few cannabinoid companies have really developed their brand. But with the growth of the market, it is important to distinguish to emerge from competition between companies.
Some boxes of cannabis-infused products like Dixie (THC and CBD drinks) have already understood the importance of branding. This is typically the kind of products where the packaging is important in the consumer’s purchasing decision.
This applies both to farmers as dispensaries, where brand recognition is a business lever. Snoop Dogg has already understood when he launched Leafs, his brand of cannabis and cannabis products.