2023 Top Ten Cannabis Industry Trends Worth Attention (International Version)
The new year has brought new optimism and hope to the cannabis industry, which may see a series of influential trends.
In general, 2022 is a difficult year for the cannabis industry. The macroeconomic adverse wind includes inflation, as well as industry-specific obstacles, such as overproduction and lack of capital investment.
Looking forward to the future, the hemp market can be expected to take just a few examples:
M&A activity has slowed down for a long time.
Call for the suspension of production in mature markets struggling with excessive supply.
As consumers' buying habits become more and more mature, the retail level of product segmentation.
1. Major market integration
After the boom period during the COVID-19 pandemic blockade, the cannabis industry does not seem to be as recession-resistant as before.
Companies in mature entertainment markets such as Colorado and Washington are struggling to cope with falling prices.
Other markets, such as Michigan and Massachusetts, where adult goods sales are on the younger side, have reached saturation points.
In response, subsidiaries and companies involved in factories are laying off workers.
Despite the cost reduction measures, many companies will still close down this year, and the licenses will be absorbed by larger enterprises. Only cost-effective enterprises can survive.
2. Mergers and acquisitions stagnate
By 2022, M&A activities will slow down sharply, and with continuous reports that capital channels around the United States are almost exhausted, this trend will certainly continue.
For a time, MJBizDaily often reported more than $100 million in corporate transactions. But these are few now.
Many of the transactions we covered in 2022 were less than $25 million.
Even the value of all or part of the stock transactions reached last year also fell sharply with the stock market.
This trend is unlikely to reverse.
3. Delta-8 THC is still a burr in the industry
In the past year, almost every state's legal cannabis market has formulated some type of rules to manage delta-8 THC.
States with limited or no legal cannabis market - even those with sound laws - see the proliferation of delta-8 products almost unregulated, providing a major source of competition for licensed industries.
According to the 2018 Agricultural Act legalizing the national production of cannabis and the "derivatives" and "extracts" of cannabis, cannabinoids extracted from the extracted CBD are legal as long as the plants they start meet the legal definition of cannabis.
Therefore, extracting CBD from fried dough twist and then passing it through the manufacturing process does not violate the US Controlled Substances Act.
If there is no change in the law, the delta-8 market may remain the same, which is a major problem for the cannabis industry.
4. THC efficacy obsession and laboratory shopping attract more attention
The industry's obsession with THC effectiveness will eventually emerge.
A long-standing problem, the effectiveness problem really surfaced in 2022. The test laboratory was prosecuted for distorting the THC number, and the state regulators from Florida to Nevada began to impose fines and suspension on the violation laboratory.
Industry observers hope that this will reduce the purchase of laboratories and better educate consumers about many other beneficial ingredients of cannabis plants.
In turn, this may shift the focus of the industry away from cannabinoid content.
5. The call for suspension is getting higher and higher
With growers in mature markets experiencing price compression and oversaturation, and more planting capacity online, some people are calling on the state government to provide assistance.
Companies in Colorado, Michigan and other states require state regulators to intervene and suspend new licenses.
It remains to be seen how this artificial market control will affect business success.
Similar actions in Oregon a few years ago did not solve the problem of overproduction in the market.
The above content is based on the objective analysis of the international hemp industry market. I hope to share information with friends in the industry and hemp friends to promote progress.
The domestic hemp industry market will continue to update in the near future, please look forward to it!
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