Ever since certain states in the US legalized cannabis and entire Canada embraced the flower, this industry continues to grow, develop and evolve. Every year, experts study trends and data to see what is new in the cannabis industry and their results for the past two years are stunning. Taking into consideration what the last two years brought to us, here are a few cannabis trends that will definitely shape this year and even many upcoming ones:
Call for lower state taxes
Many states in the US and provinces in Canada struggle with taxes. California and Alaska are the two examples where the cultivation tax puts growers in a very difficult position. California companies that grow cannabis are warning that taxes have the potential to cause the market collapse in the state.
Industry leaders warn that if they don’t see any change, many licensed cannabis companies (maybe even the majority of them) will have to choose whether to pay taxes or pay employees. This is not a good choice to have to make.
The cannabis industry will continue to solidify
Even though many new coronavirus variants started popping up all over the world and the global markets continued to struggle under the pandemic, experts expect cannabis sales to remain stable. The cannabis industry managed to remain relevant during the crisis, and if the pandemic ends, it will just continue to grow. All signs point to the fact that in 2022, consumers will continue to buy cannabis.
Flowers are losing and pre-rolls are winning
Here’s a little surprise, the flower sales went down in 2021, both in Canada and USA. Over the past two years, the flower market has been declining steadily in Canada. Why? Well, people are still buying cannabis products, but they just have many product choices now, and many choose products other than flowers. Also, the COVID-19 pandemic brought us social distancing and made the famous puff-puff-pass maneuver dangerous for health.
However, one thing that benefited from the pandemic is the pre-roll niche of the cannabis industry. Companies realized that they have to adjust their product sizes to provide the best smoking experience. According to research, in 2021, the pre-roll category grew by more than 50%! And today, you can find your best cannabis pre-rolls in licensed cannabis retail locations all over Canada. For the best experience, give your loyalty to companies that focus on pre-roll production which will ensure you’re getting only the best cannabis smokables.
Cannabis beverage and tincture industries are booming
The cannabis beverage industry is also increasing steadily. In the US, beverage sales went up from 2% to almost 4% in 2021. In Canada, cannabis beverage sale is holding on pretty good with an average of 4%. In 2022, we can expect growth in all states and provinces.
In Canada, the top product segments are the tincture and sublingual categories (together with pre-rolls, topicals, concentrates and flowers). As stated above, pre-rolls performed very well, but the Canadian market is definitely dominated by tinctures and sublingual categories.
Climate and social change issues
The cannabis industry, especially growers, need to prepare for flexibility and adaptability since climate change makes growing quite difficult due to changing weather patterns. In 2022, we can expect even more wildfires, unexpected freezes, droughts, severe flooding, hurricanes and tornadoes, all of which will affect cannabis growers. With new cannabis markets all over the world, it will be even more common to see the demand for social equity elements. This means the demand for opportunities for minorities and individuals affected by the war on drugs. The market will demand affected people to share the cake of the marijuana industry.
Still going strong, the cannabis industry will continue to grow and adapt in 2022. If you’re a consumer, pay special attention to excellent pre-roll offer as well as cannabis beverages, tinctures and sublingual products.