For the last couple of years, the Cannabis industry has witnessed great strides in legalization and innovations. In 2020, Montana, New Jersey, South Dakota, and Arizona joined the ever-expanding list. With the US welcoming CBD use in 15 States, there is a higher probability of more joining the bandwagon before 2021 ends.
By the look of things, Ohio, New York, and Florida steadily follows suit. These transitions bring forth new CBD brands launching, startups receiving more funding, and companies making solid stands. By 2025, the industry estimates to reach the $30 billion mark in market value. Still, like any other up-and-coming, here are five challenges that the industry has to overcome.
1. New Product Penetration
Improved laws surrounding cannabis use create an opportunity for manufacturers to experiment with innovations. As a result, edibles, THC and CBD products, vaping equipment, and others compete on the drawing board.
Potentially, the lucky few have a great potential of making a kill. On the other hand, several cannabis products may not have a substantial impact on the industry. This is because most of these products remain under Schedule 1 classification.
If the status changes, there would be speedy adoption and a possibility of CBD transforming the American economy positively.
2. Stigma around Cannabis Products
Even after an encouraging upsurge of cannabis legalization, society still associates the drug with disgrace. A product that has been illegal for ages requires considerable time to change the mentality of the citizens.
Overcoming such a state of mind and convincing the world to accept cannabis products might take a longer time than anticipated. Primarily, hope lies in extensive promotions and appealing strategies that attract all ages of people.
3. Stiff U.S Laws for Cannabis Entrepreneurs
Cannabis still stands as an illegal product at the federal level. This makes the US a very complicated environment for CBD-related companies to thrive. Even in legalized states, companies face a plethora of financial and legal obstructions.
Sometimes, startups seek funding from Canada, which has a favorable structure to CBD organizations. Furthermore, becoming entitled to medical comes through complicated and enduring requirements. However, the process for getting a medical marijuana card in NY becomes much easier if you contact a reliable and legal cannabis clinic.
Currently, there are advanced clinics that only require one to make appointments online. Within minutes, you can start on a fulfilling journey of getting a legally approved marijuana card. Other challenges include complicated exporting and importing of marijuana products, plus banking restrictions on cannabis organizations.
4. Rapidly Growing Landscape
Different countries and states have various laws affecting distribution, use, legality, and marijuana farming. As the industry continues to enjoy an end of some rigid regulations, adopting new ones feels like making strides through a dangerous minefield. That involves watching each step to avoid making detrimental mistakes against the ever-changing regulations.
There is a high likelihood of cannabis companies merging with established interrelated brands. For instance, alcoholic or tobacco companies would not mind a piece of the big cake. Although this sounds like intensively good news to the industry, collaborations escalate unpredictability and uncertainty. If you combine that with the legality and funding issue, the cannabis venture is no place for the fainthearted.
Albeit making massive milestones, CBD investors should get ready to face upcoming challenges. Making even in a very complicated industry requires one to stay on top of the game always. Then embrace the constantly changing CBD laws. It might take ages to make noticeable steps in the industry, but this is the ultimate moment to take a strategic position in a venture rapidly coming out of age.