As cannabis regulation continues to evolve coast-to-coast, there continues to be opportunities for growers to increase their presence in more ways than one. With federal regulations on cannabis marketing subsiding in many states (proceed with caution) and new innovations being discovered often, the industry is quickly becoming a mainstream powerhouse. How is the cannabis industry evolving and what can you expect in 2019 and beyond? Let’s dive deep into the facts to understand where you can carve your niche in this evolving industry.
Designer Cannabis Strains
With over $9 billion in revenue having been generated from cannabis in the U.S. alone in 2017, we can see just how profitable and ripe the industry is for the taking. Noting the plethora of regulations that have been lifted since 2017, one could project that those revenue figures are going to be exponentially higher in the future. Another aspect that is altering the state of the industry is the demand for designer cannabis strains.
Up until recently, demand has been incredibly high with supply unable to keep pace. Thankfully, research has pinpointed the genomic map of cannabis, thus giving growers the ability to precisely identify the genetic differences amongst high-CBD cannabis plants and breed hybrid cannabis strains. This research can further transform cannabis breeding into a more scientific and tailored process with more stable results.
Public officials have been working to educate residents on their state’s cannabis laws via public awareness campaigns that incorporate gentler, non-judgmental tones. As more consumers are being educated on cannabis in this manner, they will undoubtedly become more knowledgeable on how to spot brand value and how to use cannabis responsibly. As consumers become well-versed in the industry's product breadth, expect word-of-mouth marketing to skyrocket, and for customers to build flavor profiles and stronger brand loyalty.
Efficient Cultivation Practices
Many growers are opting for indoor cultivation which is a solution that uses the least amount of water, but the most amount of energy. This solution doesn’t offer the best of both worlds for the industry and it is showing. Even before legalization, 1% of all electricity used in the entire United States was consumed by cannabis. Today, almost 4% of Denver’s total electricity usage can be attributed to the crop. Growers focused on becoming more sustainable are looking towards LED lighting, solar power and water reclamation systems to optimize their energy efficiency.
As consumers become more loyal to brands, they will inherently begin to gravitate towards the companies that utilize efficient cultivation practices. Consumers will ultimately hone in on the growers who are improving HVAC efficiencies through their optimal insulation practices. Companies that choose to let technology control the amount and intensity of light to the ambient temperature and moisture level that their plants receive, will reap the benefits of an increased, devoted consumer base. All in all, becoming more energy efficient with your cultivation practices is a positive step in the right direction to maintain heightened sustainability at the plant level and drive further innovation and growth.
Opportunities and Takeaways
As the legal cannabis business is expected to grow into a $31 billion-dollar industry, more entrepreneurs will be entering the market. It’s likely the ever-changing marijuana laws will continue to be updated and improved as the industry moves forward. With more cannabis products entering the market every day backed by advanced advertising, packaging, and R&D, we can see that the evolution of the industry at large is primed for further evolution. With that evolution will inevitably come more competition and evolution which, if nurtured properly, will allow grower profits and consumers’ brand loyalty to flourish.