The situation with Cannabis is changing in America and Canada too. It’s no longer the taboo subject it once was. Legislation on recreational use of Cannabis-related products is slow in coming, but it is finally happening, and people are responding to better availability of CBD product lines and medical dispensaries too.
The case for investors is an interesting one.GGB outlines what they see as important to investors in this blog article. It’s fair to say that there’s certainly no shortage of people interested in getting a piece of the action. However, there’s a decided lack of informed investors in the space. This article aims to help clarify where this young industry stands today and where it might be going in the future too.
Make No Mistake, It’s Millennials
Right now, millennials are the leading consumers as legal cannabis buyers. They cover at least half the market in most states where these types of products are legally sold. When it comes to the workforce, such as people working in a retail chain like Camp or The Source, they’re also the people who more often than not are applying to work there too.
The interesting thing about millennials is that just like with technology, they largely grew up with weed, rather than having it arrive later in their lives. With marijuana, it’s always been around either as a legal source for medical purposes (perhaps seeing a parent use it to help with pain management) or through the subsequent release of CBD products like CBD oil, CBD cream, etc.
This familiarity has led to feeling comfortable about the topic. The latest research into CBD-based products has also made it clear not only how they use legal, non-mind-altering ingredients but that they provide defined medical benefits too. Millennials are totally sold on the idea.
Canada Takes the Lead
Cannabis is now legal in Canada. Other countries are watching carefully to see what the results are for society and may adjust legislation and their political stance accordingly. It’s a brave new world and as the process of legalization proceeds with the U.S. slowly working towards it and now the U.K. open to prescribe marijuana medicinal products, things have changed more in the last few years than they have in decades before.
Where is the Market Heading?
While smoking is thought of as the leading market for Cannabis, once full legalization happens, ediblesare likely to be where the market finds the most growth. They’re more discrete, portable and don’t have the wafting smoke to give away what the consumer is doing.
It’s also likely that CBD products will continue to grow in usage too. It’s a market that has a long way to go with new product lines and divisions separating leading brands and niche players. It’s a hot market for marketers and investors.
Investing in the cannabis market is not easy. It’s a changing situation with different players coming into the space and being bought out years later. Understanding where the trends are going in the market helps to predict which companies will grow and those that will struggle to survive. The nimble, informed investors likely will fair far better.