How Cannabis Businesses Are Booming In 2021
The cannabis industry has experienced tremendous growth globally since countries and governments legalized the use of cannabis to certain degrees. While not all countries are on board, the few that have accepted some form of cannabis use have significantly influenced how this industry has developed. For example, some US states legalizing medical and recreational cannabis played a significant role in the global cannabis business booming in some states. In addition, major players such as Canada, who have fully legalized the use of cannabis, also contribute significantly to the industry’s growth.
But how have these changes affected the development of cannabis, especially in 2021, with all the issues happening this year and the year before? It would be interesting to note the trends over time and how they have affected the industry’s growth at large. Keep reading for more facts and details on the same.
More Legalization Supports Growth
One of the primary reasons we see more growers, manufacturers, and breeders coming up with better cannabis breeds and seeds such as the Jack Herer strain seeds is that the legal environment is favorable. Unlike a few years back when it was almost impossible to grow hemp or cannabis plants legally, more states and countries worldwide are relaxing these rules and allowing people to use and even grow cannabis, albeit under strict/controlled measures. The United States of America is a perfect example.
States that legalized cannabis have seen more selling points and cannabis dispensaries coming up. This means that more cannabis products are now available in the market legally, thus promoting the expansion of this industry with no fear. It also allows people to access legit and high-quality products at designated points. Gone are the days when you needed to know a street vendor to get a stash of poor-quality hemp or cannabis.
There are More Sales
More people are now selling cannabis products and extracts because the law supports it in most places. There have been estimations of the industry sales going up by 130 million dollars in 2021 alone. This significant growth is attributed to the fact that more businesses are willing to include CBD and cannabis products as part of their products. Surprisingly, the CBD products are now appealing to customers that would otherwise have nothing to do with it as cannabis.
The processing of these products to include only the valuable components of cannabis makes it more attractive to this group of conservative individuals and, in turn, boosts sales and profitability. In the end, they also indirectly contribute to the growth of the industry.
There is a Variety of Broad Products on Offer
One anticipated and came to pass when certain countries legalized cannabis use was the diversity of products that would hit the market over time. The reality of this has been witnessed in 2021, when cannabis outlets have been seen to have different products from CBD oils, ointments, pills, capsules, and teas, just to mention a few. This is a good thing for the industry since it offers an option for different users.
You not only have to smoke or vape the cannabis herbs if this is not your thing. Many use CBD oils every day and still get the benefits they need from the plant. This unique product differentiation also supports the growth of the industry right from the planting stage to manufacturing. New companies have come up to focus on the production of the different products needed by customers.
The Industry has witnessed a Diversity in Customers.
Interestingly, the CBD industry has a lot of customers with different needs. The principal category would be medical users and recreational users. These two groups will undoubtedly grab other products from the cannabis industry, depending on their use. They each have a role to play as far as the industry’s expansion is concerned. Many stakeholders appreciate the role played by medical cannabis users because they helped shed a positive light on a once condemned herb.
As more people got to know and even experience some healing and soothing properties of cannabis extracts, there was a sudden mindset shift that got people conversing about the harsh conclusions they had made about cannabis. Probably this was what encouraged many states and counties that now legalize cannabis to abolish the ban.
Like everything else, when cannabis is used right, it has the potential to help users significantly. Such realization and categorization of the customer base helped push for the industry’s growth in different ways. Currently, both recreational and medical cannabis markets contribute a significant number of sales, thereby promoting the industry’s growth.
Relaxed Financing and Banking
One of the most significant challenges in the cannabis industry has always been about financing. All industries require funding to take off, and most of these funds are often given by financial institutions such as banks. For a long time, cannabis was not recognized by this sector since it was flagged as an illegal product, and no bank wanted to be associated with a company that directly deals in it.
However, we are witnessing a change in this sector, with Canada being at the forefront of encouraging financial institutions to support the cannabis industry. As more financiers release funds to industry players, it eases most processes, including products manufacturing, marketing, and other techniques that will position cannabis products as valuable. In the end, cannabis products get to compete favorably in the market, and investors do not fear to pump in their cash because there is a financial system that can be tracked.
There are Cases of New Uses Daily
One thing that seems to have boosted the growth of the cannabis industry in 2021 is that CBD products are seen as worthy alternatives to medication. The pandemic seemed to have scared many people and pushed them to take steps to protect themselves, including using products they usually wouldn’t. CBD products happened to fall in this category as new cases happened daily. The more widespread the pandemic hit, the more people ordered CBD products, leading to sales. Supporting research on the effectiveness of CBD has even made it possible for critics to come on board.
CBD and cannabis have recently gained a lot of attention as more people understand their potential. It is not surprising that this is happening, and the chances are that the trend will continue even in future years.