Views: 0 Author: Site Editor Publish Time: 2022-12-29 Origin: Site
2022 will be a tough year for cannabis investors, but the industry has made a lot of progress. According to an analysis by NORML, researchers worldwide will publish more than 4,300 studies on cannabis and its components in 2022, a new annual record and illustrating the exponential growth of scientists' interest in studying cannabis in recent years, Our knowledge of the plant, its active ingredients, its mechanism of action, and its impact on users and society has also grown exponentially.
There is still huge uncertainty in the cannabis market in 2023. Price compression and competition from the illegal market will continue to be challenges for operators in 2023. In the short term, the risk of bankruptcy and financial instability remains, but the stability and opportunity for long-term investment in the cannabis industry is certain.
Looking forward to 2023, these ten trends in the global cannabis industry are worthy of focus.
Previously, most sales of marijuana were flower-based. However, that number continues to decrease as demand for delicious beverages and food soars. Cannabis companies are responding: There are now more options than ever before for delicious cannabis edibles and deliciously refreshing beverages.
Many consumers also see the value in replacing alcohol with a CBD or THC drink in hand. It turned out to be a much safer option, without any nasty hangovers. Now, bottled sherry is a new trend, but it's not just a buzzword: These great drinks come in lower doses and don't require people to smoke. At the beginning of 2022, we have recognized that this phenomenon, especially cannabis beverages, is the star of the major exhibitions, and in 2023, this trend will continue to strengthen and there will be more choices.
In addition, beverages are not just an alternative to alcohol, but the addition of cannabinoids is also a good option for health-conscious consumers.
As legalization continues to spread, it has also led to a drop in the price of marijuana in the United States. Recreational consumers and medical patients alike now have access to cannabis cheaper than ever without sacrificing quality. Marijuana prices spiked at one point, but are now stabilizing. That's not necessarily good news for the smaller brands, but prices for top-tier cannabis remain stubbornly high.
As we learn more about cannabis and the various cannabinoids and terpenoids it contains, we realize that CBD and THC are not the only valuable compounds in this plant. Growing interest in other cannabinoids with proven therapeutic properties has led to efforts by breeders to create strains that contain more of certain cannabinoids.
Some of the cannabinoids we’re starting to see include THCV (tetrahydrocannabinol), CBN (cannabinoid) and CBC (cannabichrome). CBN has been found to have powerful sedative and anxiolytic effects, THCV is known for its short but more powerful high yield, and at the same time it has promising appetite suppressant properties that may come in handy for dieters. CBC has many things in common with CBD, notably its lack of psychoactive properties and myriad therapeutic benefits. However, CBC is more abundant in the cannabis plant, which makes it easier to produce. Researchers are working on other terpenes as well, and we're starting to see more terpene-focused products on the market. Expect to see more of this in 2023.
Cannabis brands and dispensaries are turning to fun and interactive digital media for marketing. The initial investment for these types of marketing is undoubtedly expensive, but it pays off in the long run because customers love them. Think bright, interactive, instantly programmable screens in dispensaries, video footage of marijuana farms, learning cannabinoid and terpene content through AI or 3D, the marketing medium of the future is here, right here in the cannabis industry.
Politics plays an extremely important role in the U.S. marijuana market, so marijuana investors pay close attention to the developments in the U.S. Congress. Since 2022, marijuana legalization bills and marijuana banking reform legislation have both passed the House, and unfortunately for advocates, with the exception of the marijuana research bill signed by Biden, none of these bills have translated into passage in the Senate. In the next Congress, this task may continue to be challenging, because in 2023, the US Republicans will control the House of Representatives. Recently, Senate Majority Leader Chuck Schumer (Democrat of New York) also made a "commitment" that he will continue to work on the legalization of marijuana in the federal government in 2023.
At present, 21 states in the United States have legalized marijuana for adult use, and 39 states have legalized medical marijuana. The U.S. marijuana market is very fragmented. Taerk, the fund manager of Nine point Alternative Health Fund, said he is more optimistic about U.S. marijuana interstate operators such as Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF) and Trulieve Cannabis (CSE: TRUL) (OTCQX: TCNNF), based on the fact that these companies have strong balance sheets, high operating efficiency and higher profit margins. In addition, Taerk pointed out that the expected end of large-scale capital expenditure programs of interstate operators will lead to a significant increase in cash flow of these companies.
In the new year, sales in mature markets will continue to decline, while sales in emerging markets such as New York and New Jersey will show strong growth. Experts predict that more states in the United States will launch cannabis markets in 2023, and New York State is undoubtedly the most concerned. The opening of New York state has the potential to upend the status quo of the marijuana market, and existing medical marijuana operators in the state are also expected to start selling recreational marijuana, but regulators are prioritizing entrepreneurs and nonprofits for the first 36 temporary licenses. In addition, experts said that the marijuana market in New York State will face fierce competition from the black market, superimposed with various regulatory obstacles, and the marijuana market in New York State may not have the expected high growth.
Inflation affects every industry, and its impact on marijuana is reflected in consumption patterns and prices. Consumers' wallets are deflated, and consumer spending, at least the optional consumption of marijuana, will naturally come down. According to the analysis of financial experts, the change in consumption patterns affects the fundamental adjustment in the logic of cannabis investment, but this change is temporary rather than a new normal. Cannabis consumption is expected to rebound in 2024, according to managers of the Purpose Marijuana Opportunities Fund (NEO:MJJ). Still, cannabis remains an emerging frontier market, and the next 12 months will be difficult.
The outlook for the Canadian cannabis market remains challenging, with various market restrictions dampening investor interest. In the future, the Canadian cannabis industry will be defined by the companies that survive, and the market share of the companies that have undergone screening will also expand. Experts say the Canadian marijuana market still needs to slim down and further eliminate excess capacity and retail distribution points, and companies like Village Farms International Inc (TSX: VFF ) (NASDAQ: VFF ) with agricultural skills will be safer. Specific to Canadian cannabis operators, they should focus on local companies that have opportunities to expand overseas, especially in the European market.
The potential of the European marijuana market has been a hot topic among marijuana investors. Germany is a bellwether in the legalization of marijuana in Europe. Expectations are growing that the country will approve adult-use marijuana sales in 2023, and it is rapidly moving forward with revisions to marijuana-related regulations. German Health Minister Karl Lauterbach said the country did not want to copy the more liberal Dutch cannabis regulation model, but wanted to control the entire marijuana market. Encouragingly, some European countries are also following Germany and announcing their own plans to legalize marijuana. The current marijuana market is only in the United States and Canada, and the legalization of marijuana in Europe will improve the diversification of the marijuana market.
