The cannabis industry growth is still expanding. It’s growing slower than it used to because more mature markets like Colorado and California face challenges. The lack of banking and federal reform still hits everyone in the face.
Despite these harsh realities, new markets are growing as more states and cities legalize cannabis. Global weed sales are expected to expand from $30 billion in 2021 to $55 billion in 2026, a 13% CAGR. The U.S. will account for 73% of worldwide weed sales in 2026, up from $25 billion in 2021.
What Are the Cannabis Industry’s Main Challenges in 2023?
Cannabis legalization and sales are accelerating globally, including in the U.S. Global cannabis sales might reach $148.9 billion by 2031, up from $13.4 billion in 2020. This growing possibility has produced startups, IPOs, and weed-related mergers and acquisitions like:
Two company boards authorize a merger and seek shareholder approval. Compaq absorbed Digital Equipment Corporation in 1998. Later, Compaq merged with HP.
In a straightforward acquisition, the acquiring business buys the acquired firm’s majority stake without changing its name or structure. Both companies kept their identities and organizational structures in Manulife Financial’s 2004 John Hancock Financial Services acquisition.
Combining core companies and eliminating obsolete frameworks generates a new company. Both companies’ stockholders must accept the merger before receiving common equity in the new entity. Citicorp and Travelers Insurance Group merged in 1998, forming Citigroup.
Even though this industry has grown, it has to deal with big problems in 2023.
Human Resource Quality
Because of new rules coming from the government, employers must address concerns about fair pay, equal chances, and other human resources issues. Legalization could be better for the industry, which has to follow the rules to be a part of society. Farmers and store owners need to make sure their employees are happy. How to get into the cannabis industry by keeping employees happy, trained, and interested.
The Legality of Public Housing
If you want more clients for your goods, you must be aware of any issues keeping it from them. The legality of cannabis in public housing prevents many buyers from consuming it. Its designation as a drug provides a hurdle that can be overcome by keeping weed regulations similar to commercial laws.
A Great Strategy for Digital Marketing
The cannabis industry growth digital transformation issues include using digital channels to boost sales and establish a customer base. Paid media, enterprise SEO, Local SEO, content strategy, and social media are difficult to measure for weed companies. Digital experience, website design, and brand presentation are problems for these companies.
The VA Does Not Give Out Cannabis
The Department of Veterans Affairs faces the same problem that hospitals have, which was discussed above. Veterans who go to the V.A. will not be able to get weed. But the potential customer would benefit from using this substance to help with post-traumatic stress disorder.
Limited Banking Opportunities
Insurance Journal says that the problems caused by the media and federal regulators are the biggest problems for businesses in the weed industry. Regulations make it harder for companies to deal with everyday issues. Finding a bank that will work with your weed business could be a problem in 2023.
Beliefs In the Medical Community
More doctors and hospitals support weed420. Many people still believe weed and medical weed should be prohibited. This stigma in hospitals creates a major challenge for business owners in this industry: hospitals don’t receive federal funding if they promote marketing in the cannabis industry.
What Advantages Does the Cannabis Industry Have In 2023?
The cannabis industry growth has spawned jobs like extractors, cannabis consultants, botanical specialists, cannabis extraction technicians, and budtenders. This industry also employs many people with previous jobs, primarily in web development and graphic design.
Since the BLS includes nonspecific weed jobs in “agricultural,” “manufacturing,” and “retail sales,” the actual number is higher. Different federal and state reporting processes and criteria contribute to underreporting. Barcott believes reporting problems have hidden 200,000 weed-related U.S. jobs.
Weed420 has provided many people with highly competitive jobs. Here are the most notable weed employment stats:
- At the beginning of 2022, there will be 428,059 full-time jobs in the U.S. weed industry. It is a 33% increase from 2021.
- In 2021, there will be 83,607 jobs in the weed industry in California.
- In 2021, the weed industry will be adding more than 280 new jobs every day.
- If weed is legalized federally in the U.S., the industry would create more than 1.6 million jobs by 2025 and pay nearly $60 billion in wages.
- More Americans work in weed than barbers, hairdressers, and cosmetologists combined.
What Trends Will Affect The Cannabis Market in 2023?
2023 will bring many weed market changes. The market will increase rapidly due to customer education and new weed products. In recent years, the weed sector encountered various hurdles.
Due to quick market expansion, 2023 trends will only last for a while. Here are the trends to watch in the coming year.
New weed strains may have a big impact, though. As more states legalize medical and recreational cannabis, consumers want unique strains with specific effects and flavors.
By 2023, weed will be legal in a lot of places. Over 33 countries have signed the petition to make the medical and recreational use of marijuana legal. The weed business in Chicago is growing, and more states may make it legal in 2023. There are more dispensaries and home growers all over the world.
Changing People’s Minds
Cannabis is discriminated against globally. Despite new research showing the plant’s benefits in treating melancholy, anxiety, nausea, pain, and sleeplessness, it’s still a forbidden medication. The weed industry plans to educate the public about cannabis’s benefits by 2023.
Increasing Health Awareness
In 2023, the weed health sector will expand rapidly. People will become more health-conscious after learning about the benefits of weed. Many people want to use weed instead of chemicals or traditional drugs.
The cannabis industry growth is booming and becoming more recognized, but it confronts hurdles. These developments will make 2023 volatile and fast-changing for investors and weed entrepreneurs. Investors must decide which startups, IPOs, and established weed420 companies can survive the turbulence and flourish long-term.
Keep up with your industry to stay ahead of the competition, and be ready for anything new that could affect your business in the new year. Visit QRX Dispensary to find out more about the growing cannabis business.