New Weed, New Problems:
What the cannabis industry should expect to overcome in 2021
The cannabis industry is one of the fastest-growing industry seen in the last century. As of this year, more than half of the United States has implemented some form of pro-cannabis legislation. This year seem approximately 5 new states go green. Economists expect the cannabis industry to exceed $200 billion by the end of 2030, but what about next year? How will the landscape of the cannabis industry appear in 2021? Will it boom, or will it be a bust? Here are the expected challenges for cannabis companies in 2021.
COVID-19 in 2021
One of the biggest expected challenges revolves around the current biggest challenge of 2020. Cannabis companies and consumers alike would be foolish to believe that the Coronavirus will simply disappear on New Year’s Day 2021. The cannabis market should expect to continue towards toppling the challenges of COVID-19 within the cannabis industry. This means that brick-and-mortar cannabis companies who thrive on the physical form of customer service are expected to struggle well into the second quarter of 2021. Cannabis companies ought to aim their focus on providing a contactless cannabis delivery service for (at least) the first leg of 2021.
Market Expansion
2020 saw the cannabis market expand due to a handful of new states voting in favor of the legalization of cannabis and cannabis concentrates. This means that these new locales will enact their pro-cannabis laws at some point in 2021. This means that the cannabis market is expected to bubble sooner than later. This means that new as well as current cannabis cultivators will have to meet the demand of the new consumers. Moreover, market expansion will cause consumers to learn the ins-and-outs associated with the new market. There may also be a brief gap due to new locales ironing out their application processes for new licensed producers.
Cannabis Crash of 2021?
Considering the aforementioned expected challenges associated with cannabis, there is a strong chance that the cannabis industry could experience a crash by Q3 2021. Companies such as Canopy and Aurora Cannabis have seen a drastic decrease in value since the beginning of 2019. There is strong evidence that aims the blame at COVID-19. Recently, the aforementioned cannabis companies have seen an increase in value since hitting their all-time lows. However, it is unclear if big cannabis companies will survive the economical wrath of COVID-19.
Clashing Cannabis Statutes, NIMBY
Another challenge expected to arise in 2021 revolves around conflicting legal statutes. With 5 more states expected to legalize cannabis by the end of 2021, these same states must ensure there are no conflicting statutes. The biggest clashing cannabis law revolves around the legality of cannabis on a federal level. Consumers and companies are still liable to face cannabis-related charges if this law remains on the books. Moreover, these states are sure to experience a NIMBY (or ‘not in my backyard) pushback from ultra-conservative citizens of these states. These issues will surely create a problem for the soon-to-be cannabis markets of the greenlit states. Let’s hope that NIMBY does not create another Marin County, Ca. in the new cannabis states.
More Misinformation and Stigmas
One of the biggest challenges expected to be endured in 2021 revolves around misinformation. 2019 was undoubtedly the year of fake news. Since the 1920s, misinformation about cannabis and cannabis-related products have plagued the industry. Moreover, these ideas have bled into current and expected generations. Cannabis propaganda also can be detrimental to a consumer’s professional livelihood. Aside from Nevada, states are still allowed to test for the presence of cannabis in prospective employees.