Cannabis Industry Growth in 2021

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There is no doubt the cannabis industry has experienced rapid growth in the last few years. The industry has gained legalization in many locations, while other states are trying hard not to affirm it. This industry's dynamic growth sets its peak into 2021 as cannabis is gaining legalization globally, spreading its tentacles worldwide. Some factors aid the growth of this industry, helping it achieve more ground as time passes. Some of these factors are;

Rules and regulation in the States

State rules and regulations are one of the factors that will affect the growth of the cannabis industry in 2021. If a state does not legalize cannabis, its production becomes illegal, which is a stumbling block for its development. If the state legalizes it, its sales and production become legal, improving the industry's growth.

Some states are participating in the cannabis industry by loosening regulations, allowing the use of cannabis for recreational purposes. Some entered the industry, making strict regulations to guide its sales and production. These regulations either make it easy or difficult for the industry to run very well or even grow.

Although these regulations might not have the cannabis industry as their target, it still affects their growth. These regulations’ volatility, whether in the country or state, can disrupt the cannabis industry operations. However, if the trend shifts towards lesser regulations guiding cannabis, the industry’s growth will be tremendous this year.

CBD and cannabis-derived products market popularity

Cannabis products are gaining much popularity, and the products will be widely used by people this year if the trend continues. CBD is cannabis-derived products that have analgesic properties. CBD is becoming very popular, and its sales in the market are increasing. CBD also has anti-inflammatory and anti-anxiety properties.

Another cannabis-derived product is THC. THC is similar to CBD but has a psychoactive effect on users. They both are gaining popularity with CBD being more popular than THC because of its health benefits. Reports showed that the growth in CBD and cannabis-derived products is increasing, and the trend continues.

As cannabis-derived products are gaining ground in the market, the growth of the cannabis industry becomes more feasible. Study shows that more than 4000 cannabis products get introduced each month with these products’ consequent purchase. If the increase in this product's popularity and use continues, there will be rapid growth in the cannabis industry.

Mergers and acquisitions

Mergers and partnerships with other firms that are approaching the cannabis industry should explore to ensure its growth. Merging with other organizations will provide stability and help the industry gain more ground. They will leverage the merging company's influence and existence to fuel its growth.

Companies in this industry should partner with cannabis consulting firms. Partnering with cannabis consulting firms will ensure the faster growth of the industry. Partnering with political bodies can also be useful for the growth of cannabis companies.  Drew Breuninger said, "with political headwinds, we will see massive industry evolution and growth in the coming year", but this headwind is nowhere near. So, cannabis industry members should ally with political bodies, to ensure their growth.

Investors

The cannabis industry was once considered a risky business to invest in, but time changed people's perceptions. The cannabis industry has become very lucrative and more rewarding for investors. Multi-million investors are flooding the industry, causing it to grow massively and spread tentacles nationally and internationally.

The study reveals that investors pick interest in companies that deal with cannabis and not side-companies that offer services to the cannabis industry. The investment trend in the cannabis industry assures a massive, blooming growth in 2021. There are more multi-million investors in the cannabis industry now than they were in the past few years.

The investment trend also caused a national expansion of the industry. With the state legalization and loads of investors, the sector can cross borders and create national brand expansion. If this trend continues, then the increased growth of the cannabis industry is inevitable.

The growth of the cannabis industry in 2021 is very feasible if positive trends continue. With the right steps, merging, investors, legalization, and popularity of its derived products, the industry can gain ground and grow beyond its current status.

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