We’re sharing the 6 Big Cannabis Industry Trends that Are Going to Help the Cannabis Industry Evolve Over the Next Few Years
As the legal cannabis market continues to expand, entrepreneurs, investors, and enthusiasts alike are eagerly keeping an eye on the latest developments and trends that shape this dynamic field. From innovative product offerings to shifting consumer preferences, there is an exciting array of opportunities and challenges to explore. In this blog, we will not only examine the trends that are driving the growth of the cannabis industry.
The Cannabis Industry is Evolving, Quickly
The cannabis industry is experiencing remarkable and rapid growth, fueled by the increasing acceptance and legalization of cannabis around the world. This growth is not just limited to the number of consumers but also extends to the demand for new and innovative cannabis products.
As the industry evolves, consumers are driving the demand for products beyond traditional flower, such as concentrates, edibles, topicals, and more. This demand for variety and sophistication has led cannabis cultivators to push the boundaries of cultivation techniques and develop new strains with unique characteristics.
Cultivators are also using advanced technologies to improve the quality and consistency of their crops, such as automated grow systems, climate control, and genetic manipulation. With each passing day, the cannabis industry becomes more sophisticated and innovative, meeting the evolving needs and desires of consumers.
That being said, let’s discuss the 6 key trends that are going to shape the Cannabis Industry over the next few years.
1. Cannabis 2.0 Products
The Cannabis 2.0 trend in the cannabis industry refers to the increasing demand for new product categories, driven by evolving consumer preferences. While cannabis flowers continue to dominate the market, there has been a notable shift towards non-inhalation products, especially edibles, due to concerns over respiratory health and the need for stress relief in uncertain times.
Trend-Driven by the Pandemic
This trend has been further fueled by the COVID-19 pandemic, which has highlighted the importance of alternative consumption methods. Edibles, in particular, have gained significant popularity, accounting for a substantial portion of the Canadian market for cannabis extract-based products, estimated at approximately C$1.6 billion annually. Deloitte projects that the overall market for edibles and alternative cannabis products in Canada is valued at C$2.7 billion per year.
New Cannabis Product Categories Being Created
However, the Cannabis 2.0 trend extends beyond edibles. Other product categories experiencing growth include cannabis-infused beverages, vapes, pre-rolls, topicals, concentrates, tinctures, and capsules. These segments offer diverse opportunities for innovation and product development, catering to the preferences of a rapidly evolving consumer base.
Cannabis Beverages
Cannabis-infused beverages, for example, have seen a significant boost in sales, with an estimated value of C$529 million. This can be attributed to the appeal of a refreshing and socially acceptable way of consuming cannabis, especially among younger generations who may be more hesitant to engage in riskier behaviours like sharing a joint.
Cannabis Topicals
Furthermore, topicals, including creams, lotions, and balms infused with cannabis extracts, have gained popularity for their potential therapeutic benefits. This segment is valued at approximately C$174 million and offers consumers an alternative method of experiencing the potential benefits of cannabis without psychoactive effects.
Cannabis Concentrates
The concentrates market, valued at C$140 million, caters to consumers seeking highly potent cannabis extracts with a variety of uses, including vaporization and dabbing. Tinctures, with a value of C$116 million, offer a discreet and convenient way for consumers to consume cannabis orally, while capsules, valued at C$114 million, provide an easy and standardized dosing method.
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2. Refinements in the Cannabis Industry Technology
The cannabis industry is experiencing remarkable growth and transformation, not only in terms of cultivators and producers but also in the technology and tools being utilized. As the industry evolves, cannabis producers are recognizing the need for sophisticated distribution methods to optimize their operational costs and streamline their processes.
This has paved the way for the rise of cannabis seed-to-sale software, which is revolutionizing the way growers track their products from the early stages of cultivation all the way to the final sale.
Fast-Growing Market for Cannabis Seed-to-Sale Software
The market for cannabis seed-to-sale software is expanding rapidly, with a projected value of USD 861 million by 2033, growing at a compound annual growth rate (CAGR) of 15.53%. This indicates a significant shift in the industry towards embracing technology-based solutions that enhance efficiency and compliance.
Integration with Government Systems
One key advantage of using seed-to-sale software is its seamless integration with federal, provincial, and state-level systems. As cannabis cultivation and distribution become more regulated, it is crucial for growers to comply with the various laws and regulations imposed by state authorities. Seed-to-sale software ensures that cultivators can easily track and report their cannabis products in a manner that aligns with state requirements. This not only reduces the risk of non-compliance but also streamlines the administrative burden for growers.
Helping Cannabis Cultivators Become Increasingly Sophisticated
Moreover, seed-to-sale software provides cultivators with detailed insights into their operations. By capturing data at every stage of the cultivation process, from seed to sale, growers can gain valuable analytics and metrics that enable them to make informed decisions. This data-driven approach empowers cultivators to optimize their production processes, identify bottlenecks, and maximize yields. Additionally, this software can assist in monitoring inventory levels, maintaining quality control, and identifying opportunities for growth.
Another benefit of seed-to-sale software is its ability to enhance traceability and transparency in the cannabis supply chain. With the increased demand for safe and regulated cannabis products, consumers and regulators alike are seeking assurance regarding the origin, quality, and safety of the products they purchase. Seed-to-sale software enables cultivators to provide detailed information about each batch of cannabis, including its genetics, cultivation methods, and testing results. This transparency builds trust and credibility, ultimately benefiting the entire industry.
Did you know? GrowerIQ has an industry-leading Seed-to-Sale Cannabis Software (with quality management built in) that is designed to uncomplicate cannabis production for cannabis producers throughout the world.
3. A Focus On Sustainable Practices
In recent years, the cannabis industry has experienced significant growth and success. However, this success has not come without its environmental challenges. As cannabis cultivation processes and business operations often require a substantial amount of resources, there is a growing focus on implementing sustainable practices within the industry.
The Industry Is Trying to Reduce Its Carbon Footprint
One of the key areas of concern for the cannabis industry is its carbon footprint. With the increasing demand for cannabis products, there is a need to address the emissions associated with cultivation, processing, and distribution. To tackle this issue, companies are exploring ways to reduce energy consumption and minimize greenhouse gas emissions. This includes using energy-efficient lighting systems, optimizing ventilation and airflow, and implementing carbon capture technologies. By adopting these sustainable cultivation practices, the cannabis industry can significantly reduce its environmental impact.
Reduced Use of Plastic-Based Products
Another area where the cannabis industry is striving for sustainability is in the management of plastic-based products, such as vapes. These products have gained popularity among consumers, but their disposal often contributes to plastic waste and pollution. To address this concern, companies are investing in recycling programs and exploring alternative packaging options that are more eco-friendly. By increasing recycling efforts and reducing the use of single-use plastics, the cannabis industry can make a positive impact on the environment.
More Efficient Use of Water
Traditional cultivation methods often require excessive water usage, which can strain local water supplies and contribute to water scarcity. To combat this, companies are implementing water-efficient irrigation systems and utilizing technologies that enable precise control over water usage. Additionally, sustainable fertilization methods, such as organic and biodynamic practices, are being adopted to reduce the use of synthetic chemicals and minimize environmental impact.
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4. Growth in Craft Cannabis Brands
Craft cannabis brands are quickly gaining traction in the cannabis cultivation industry, following in the footsteps of their counterparts in the hops industry. These boutique brands are catering to the needs of discerning cannabis consumers who crave higher quality products and unique experiences. By embracing the craft branding model, cannabis cultivators are able to meet the demands of educated consumers who are looking for more than just the average cannabis company.
Craft Brands Enable New Experiences
Craft cannabis brands are not simply focused on providing a product; they are focused on providing an experience. They understand that consumers want more than just a standard high, they want an experience that is backed by science and goes beyond what is typically expected. These brands are taking inspiration from the craft beer industry and are finding ways to stand out in the market.
Craft Cannabis Brands Are Raising Serious Money to Grow
One example of the growing interest in craft cannabis brands is the recent news of a craft marijuana grower who raised $7.5M to build their business. This demonstrates the increasing recognition and investment in this sector of the industry. As more consumers seek out high-quality, artisanal cannabis products, the demand for craft brands will continue to rise.
Craft cannabis brands are not just about fancy packaging and marketing gimmicks. They are dedicated to producing top-notch products that are carefully cultivated and curated for the best possible experience. These brands prioritize quality over quantity, and their attention to detail sets them apart from larger, mass-produced cannabis companies.
5. Cannabis Industry Employment Is Increasing
The cannabis industry has experienced a remarkable surge in growth and has become a significant player in the economy.
Cannabis Industry is Benefitting the U.S. Economy
Since the legalization of recreational marijuana in Colorado in 2014, the industry has expanded its reach across the US, with states like Missouri, New Mexico, and Oklahoma jumping on board. This expansion has had a profound impact on various aspects of the economy, including commercial real estate demand, tax revenues, and job creation.
In the Tenth Federal Reserve District, which includes these states, the cannabis industry has been a catalyst for economic activity. The increased demand for commercial real estate, driven by the need for cultivation facilities, dispensaries, and processing centers, has created a dynamic market in the real estate sector. This trend has not only boosted property values but has also provided opportunities for entrepreneurs and investors alike.
The Cannabis Industry Is Driving Tax Revenue
The legalization of cannabis has resulted in a significant increase in tax revenues for these states. The sale of cannabis products has generated substantial tax dollars, which have been allocated to various public services and initiatives. This influx of revenue has allowed for infrastructure, education, and healthcare improvements, among other areas.
Cannabis Industry Is Driving Job Growth
Perhaps the most impactful consequence of the cannabis industry’s growth is the creation of jobs. Across the Tenth District, numerous employment opportunities have emerged, ranging from cultivation and extraction to retail and ancillary services. This growth in job opportunities has provided individuals with a chance to enter a new industry and contribute to its development. In addition, the cannabis industry has been a source of “green collar” jobs, which are often well-paying and offer career advancement opportunities.
The Cannabis Industry is Also Growing the Canadian Economy
Canada has also seen the positive effects of the cannabis industry on its economy. Since legalization, the industry has contributed significantly to Canada’s GDP, with $43.5 billion added overall and $13.3 billion directly to Ontario’s GDP. Moreover, it has sustained 151,000 jobs nationwide and injected $15.1 billion into government coffers through taxes and licensing fees.
The expansion of the cannabis industry has brought economic prosperity and stability to regions that have embraced its legalization. The industry’s growth has not only provided employment opportunities but has also stimulated other sectors of the economy, such as real estate and taxation. With these trends set to continue, we can expect the cannabis industry to continue playing a vital role in boosting economic activity and creating a more vibrant and diverse economy.
6. CBD Being Used for Medical & Wellness Purposes
The global CBD oil market is experiencing a significant surge in demand, as it is expected to reach a valuation of US$ 5,980.6 million by 2033. This growing trend can be attributed to several key factors that are propelling the market’s growth.
CBD Driven Growth
Firstly, the expanding legalization of cannabis worldwide is playing a crucial role in the increasing demand for CBD products. As more countries and states legalize the use of cannabis for medical and recreational purposes, the regulatory barriers surrounding CBD are gradually diminishing. This has created a favorable environment for the production and distribution of CBD oil and other cannabis-infused products.
CBD is Being Used for Cancer Treatment
Secondly, the emerging applications of cannabis in cancer treatment have contributed to the rising popularity of CBD oil. Many studies have shown that CBD possesses anti-cancer properties and can help alleviate the symptoms of chemotherapy, such as nausea, pain, and loss of appetite. As a result, more cancer patients are turning to CBD oil as a complementary therapy to improve their overall well-being during their treatment journey.
People Are Seeking Natural Alternatives to Traditional Medications
CBD is widely recognized for its potential therapeutic properties, including pain relief, anxiety reduction, and sleep improvement. As people become more health-conscious and seek natural alternatives to traditional medications, CBD products have gained widespread acceptance in the medical and wellness communities.
CBD is Also Being Used in Pet Food
Looking ahead, the CBD oil market is expected to witness considerable development prospects. One notable trend is the inclusion of cannabis in pet food, as pet owners increasingly explore the potential benefits of CBD for their furry companions. Additionally, there is a growing demand for beverages with cannabis flavoring, indicating a shift towards incorporating CBD into everyday consumption habits.
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How GrowerIQ is Enabling Growth in the Cannabis Industry
GrowerIQ’s seed-to-sale cannabis software is revolutionizing the way cannabis cultivators operate their businesses by simplifying the complex process of cannabis production. With easy software and hardware integration, cultivators can create accurate, all-digital master batch records, eliminating the need for cumbersome paper records and reducing the risk of human error. This streamlined approach ensures that every step of the production process is accurately tracked and documented, from seed germination to final product packaging.
GrowerIQ Streamlines Cannabis Business Management
One of the key features of GrowerIQ’s software is the ability to track all customers, suppliers, and partners in one centralized place. This not only saves time and effort, but it also allows cultivators to easily manage their relationships and ensure seamless communication throughout the supply chain. Additionally, the software provides deep data analysis, allowing cultivators to track digital metrics according to their standard operating procedures (SOPs). This data-driven approach provides valuable insights into the cultivation process and enables cultivators to make data-informed decisions to optimize their operations.
GrowerIQ Helps with Compliance Requirements
Another significant benefit of GrowerIQ’s software is the professional help it provides with legal requirements, audits, and compliance. The software is designed to meet Good Production Practices (GPP) and Good Manufacturing Practices (GMP) standards, ensuring that cultivators can confidently navigate the complex regulatory landscape of the cannabis industry. Additionally, GrowerIQ offers quality advisory services, providing cultivators with expert guidance to maintain the highest quality standards and ensure product safety.
Discover how GrowerIQ’s seed-to-sale software can help you set up all of the components of a successful cannabis production operation without any hassle. Questions we haven’t covered? Please reach out and let us know. GrowerIQ serves clients coast to coast, and we’re ready to help your team today.
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