Cannabis Industry in 2022 Although Colorado has been booming in recent months, sales have dropped off in February, and were 4% lower than in January. In February 2022, sales were 13% lower than in the same month one year prior. Although Colorado continues to break sales records, the newer states are feeling the pressure. Sales in Arizona fell 10% in January 2022, and sales in Hawaii have seen a slow annual growth rate.
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Product innovation in Cannabis Industry
As the cannabis industry becomes more competitive and consumers become more educated about products, product innovation is more important than ever. The next five years will see the cannabis industry evolve into a more consumer-centric industry, based on a broad range of product types. This shift will require the industry to continue to innovate and provide new products that consumers will find more appealing. Below are some trends we expect to see in the cannabis industry.
A growing number of companies will announce new product innovations in the cannabis industry in 2022. Many will invest in research and innovation to expand their markets, position themselves as a target for acquisitions, and build a robust portfolio. In addition to new products, we can expect to see more innovations in cannabis consumption tools, such as vaping accessories and other accessories. Ultimately, cannabis products will drive consumer health and wellness, and this trend will continue throughout the next few years.
Cannabis products include oils, tinctures, topicals, and edibles. Because edibles take an hour or more to reach psychoactive effects, the availability of the chemical THC in the products is limited. Technological innovations like nanoemulsions and time-released products will be the key to a consumer-friendly future in the cannabis industry. So, how will cannabis manufacturers keep up? Product innovation in the cannabis industry in 2022 should be an exciting endeavor.
In addition to edibles, other cannabis-infused products are on the horizon. In addition to tinctures, cannabis-infused beverages will also expand in popularity. Cannabis-infused beverages will become more prevalent, as consumers seek healthier and non-alcoholic beverages. Sports drinks and social drinks will likely see a growth in the cannabis-infused beverage industry in 2022. And the cannabis industry will continue to grow as more regulations are passed and the cannabis market continues to mature.
IoT tech
Internet of Things technologies like sensor devices and data analytics are becoming more common among cannabis growers. The industry is currently booming in North America, with nine US states legalising recreational marijuana and Canada poised to legalise it across the country. Companies have begun hiring senior management with backgrounds in technology, including Microsoft veteran Marco Hegyi. This enables them to use new technology to manage the supply chain, and ensure a consistent product.
The technology allows growers to track every aspect of their crop, from germination to harvest. This information is available on a SaaS platform and allows retailers to track plants down to their roots. This information can also be used to ensure compliance with state regulations. For example, it’s possible to monitor substrate moisture in real-time. A system that tracks key environmental metrics can also help cannabis growers monitor their plants.
Despite the legalization, cannabis stores still need technology to comply with regulations and improve the shopping experience of consumers. Fortunately, marijuana tech companies are working to fill in the gaps in this industry. In addition to IoT devices and other technologies, marijuana cultivation is an intricate process that requires constant care. Even if all goes well, mistakes can cause the plant to die. The result is a product that is both safe and reliable. Moreover, it requires the correct guidance in terms of medicinal marijuana.
Internet of Things technology can be a significant advantage for cannabis growers. By integrating sensors into their farming systems, growers can control environmental factors like humidity and temperature. Additionally, these connected technologies allow growers to schedule watering and light cycles and ensure that their crops are growing optimally. The cannabis industry is one of the fastest growing industries, and entrepreneurs will find many ways to capitalize on it. If you’re an entrepreneur who’s looking for a profitable business, it’s time to get on board!
Cybercrime
A growing number of cyber attacks target the cannabis industry, with dispensaries particularly vulnerable to data breaches and attacks. Cybercriminals target cannabis businesses because they have access to sensitive information such as personally identifiable information, trade secrets, and intellectual property. The rapidly growing cannabis industry also makes cannabis retailers a target because it does not yet have a mature cyber security program in place. As a result, businesses that operate in the cannabis industry should be vigilant and implement effective cyber security measures to prevent cyberattacks.
As with other emerging industries, the cannabis industry faces heightened privacy issues and cybercrime. Medicinal marijuana dispensaries handle protected health information (PHI), which is much more valuable on dark web forums than common PII. This is why these businesses are required to adhere to state privacy laws. Moreover, the federal Health Insurance Portability and Accountability Act does not apply to dispensaries, so these businesses are not protected by the federal government.
In addition, cannabis dispensaries should secure their cryptocurrency wallets. Encrypting customer data will keep it private, and the processing system should be isolated from the network. The same applies to the private keys of cryptocurrency. In addition, dispensaries should use an external cryptocurrency wallet and avoid using their own personal information for passwords. However, cannabis businesses should not rely on their own IT staff to keep their data safe.
The security landscape of the cannabis industry will change as the industry continues to evolve. Retail cannabis stores will require a flexible, customizable security solution. Building a new cultivation facility can be challenging and complicated. A complex security platform is not the right solution for the cannabis industry. Instead, cannabis businesses should seek the help of an experienced partner and security solution. Cybercrime in the cannabis industry is not only a growing problem, but an ongoing threat that must be addressed.
Delivery trends
As the legalization of marijuana progresses, brands are turning to edibles that are more healthful than potent. These new products will satisfy consumer demands for healthier, more convenient edibles that still deliver the desired effects. Cannabis companies like Kiva are also exploring the possibility of implementing live resin edibles in edibles to replace THC distillate in products. The use of innovative products in the cannabis industry will help grow sales and improve marketing.
The cannabis industry is expected to stabilize and grow in North America. New delivery models are forming and a booming cannabis industry is set to emerge. Legal cannabis in the United States is expected to continue its growth trajectory, particularly in California. The price of marijuana will remain inflated compared to the illegal market, which will slow licensing in the region. Delivery models, like those offered by medical marijuana dispensaries, will continue to evolve.
The availability of online cannabis products makes it easier for companies to take advantage of new markets and strengthen their supply chain. However, as wholesale cannabis flower prices continue to drop, businesses are looking for ways to increase efficiency in every aspect of their operations. Cannabis retailers are seeking innovative ways to streamline operations, such as automating processes and utilizing new tools and technologies. A solid supply chain plays a crucial role in the growth of a cannabis-based business. Moreover, e-commerce solutions can greatly impact the profitability of an online cannabis delivery business.
According to Headset data, sales of cannabis to both genders have increased over the past three years. However, female consumers have seen the biggest increases, accounting for 55% of the industry’s dollar sales in Q4 2021. Delivery services will also continue to be a growing trend, with cannabis-infused products making up more than 40% of the market in 2022. The industry is ripe for a major shift.
Social equity
Advocates for social equity in the cannabis industry say that New York state is off to a good start. According to Hochul’s State of the State Book, the state is “leading where so many other states have lagged.” The State’s $200 million social equity fund will provide direct capital and financing to eligible companies. It aims to award at least 50% of licenses to companies whose owners come from underrepresented groups, including minority businesses and service and justice-involved individuals.
State legislators have passed legislation prioritizing minority-owned businesses and cultivating cannabis. The state will now award cannabis licenses to applicants who meet social equity criteria. To be considered, an applicant must have an expunged cannabis-related offense, be an owner of a business that hires these individuals, and reside in a community disproportionately affected by cannabis arrests. However, despite the state’s goal to achieve social equity in cannabis, this goal may never be reached.
In the new year, the cannabis industry is turning a corner. While there’s still a long way to go, many advocates are working to promote more diversity in the industry. For example, the Cannabis Business Times recently recognized Ngiste Abebe, vice president of public policy at Columbia Care, for her efforts in promoting social equity in the market. While the numbers may not be all that impressive, the fact that the U.S. Cannabis Council is taking steps in this direction is a major step.
In February 2022, the National Cannabis Equity Report and Map will be released by the Minority Cannabis Business Association. The report highlights 41 policy points from several states, which are summarized in the Equity Map. The report also highlights seven preliminary conclusions, including the need to create a non-race social equity qualification process, license caps, and ownership bans for past cannabis convictions. Parallel, one of the largest privately-held multi-state cannabis companies, hopes to release these reports and maps.
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