All industries usually go through the same cycles, and it shall be true of cannabis, in due time. However, it is still in its first phase of development, although it would seem it is rapidly reaching the second one, which is consolidation. With all the new products featuring CBD from the cannabis plant and more countries legalizing the use of cannabis, let’s look at its global position in today’s world and where it is heading.
In the beginning
In the first few years of an industry, it is totally normal to see the business change considerably from year to year. In fact, if we look at the last ten years, we discover huge market fluctuations and rapid movements, in the cannabis industry. But it has been building its foundation very strongly, shall we say: Cannabis seed by cannabis seed…
At the beginning, the first people who came into the market were often under qualified. Also, the budget necessary to grow cannabis, or to enter into CBD studies, to create new products, was often too small to yield great results. That is in great part why so many cannabis start-ups did not make it onward. However, those that did have become serious players in the industry today.
The Years of Regulations
Any new business will see a flurry of regulations being voted in Houses and Parliaments. So, it’s not because this industry deals with what was considered to be an illegal drug worldwide before, that it faced new rules. That said, it certainly played a part in the fact that this industry saw more than the normal share. It justifies itself, since most of them were written in order to protect the consumers from health risks. But it was also aiming, at the time, to install confidence in them. In short, let’s just say that it made the task of those managing businesses in this industry, much more complicated.
A time for Consolidation
The COVID-19 crisis did affect the growth of the industry, but most of the proposed legalization plans, such as in Mexico (adult marketplace) and the rescheduling of talks on cannabis at the United Nations, has fueled the industry with a lot of interest, again. It also brought fresh money to the table, as most of the prominent business players in the world believe that we are now on the cusp of a global cannabis industry. That is why we are seeing a phenomenon of aggregation, as marijuana dispensaries and firms are now joining hands, under one entity, in order to become stronger and ready to take on the global market.