10 Predictions for the 2023 Cannabis Industry

It’s a brand new year! In 2022, the cannabis industry made quality progress with more states allowing for either medical or recreational cannabis sales. Every year since the first state passed a bill on cannabis, we have been steadily moving toward full federal legalization. We can even look far enough to see there is a possibility of purchasing cannabis online in the near future. As for 2023, here are some things that we may see happen...

1. George Mancheril, CEO of Bespoke Financial, predicts that although the economy is in a precarious position, mature cannabis markets should make enough capital to survive throughout 2023. We all have seen the news about how we are headed toward another year of struggling economic times but, after the peak of the pandemic, cannabis has proven to be a strong market even in the worst of times. As more states are likely to pass legislation on cannabis, each state will have an opportunity to gain capital through taxes.

2. With so many cannabis markets emerging and creating their own brands and retailers, it is going to become important to have a lot of differentiation. For example, according to Benzinga, in six different states, cannabis gummies account for over 70% of all cannabis sales. With that insane amount of the market share, there will come a point that a brand cannot just glide under the radar and still be profitable. Establishing real differences are essential to staying profitable in what may be a difficult economic year.

3. Cannabis consumers will have more interest in how their non-flower products are being made and produced. Edibles are becoming so common that regular food trends are bound to follow into the cannabis industry. Health has always been a big concern and right now the trends are looking for organic, vegan, and all-natural made ingredients. Consumers are avoiding products that use ingredients like chemicals, masking agents, and other additives that are ultimately unnecessary. Cannabis can and will be expected to be delivered naturally into your system for clean and reliable results.

4. It is possible for the SAFE (Safe and Fair Enforcement) Banking Act to pass, or something like it. The SAFE Banking Act, claims Congressman Ed Perlmutter, “seeks to harmonize federal and state law by prohibiting federal regulators from taking punitive measures against depository institutions that provide banking services to legitimate cannabis-related businesses and ancillary businesses (e.g. electricians, plumbers, landlords, etc.) that serve them.” This would ultimately provide a safe harbor for any company that chooses to provide banking services to cannabis related businesses. Although this prediction may be optimistic, the passing of this act would create jobs and better the country as a whole.

5. According to Curaleaf Holdings Inc. Founder and Executive Chairman Boris Jordan, there will likely be a bigger demand for cannabis infused beverages. This prediction is due to cannabis beverages growing in market share over 20% in the last two years. This may be due to consumers wanting a broader selection when shopping for cannabis, see 2. As of the end of 2022, if the market share continues to grow at this pace, cannabis beverages will be competing with gummies for the most popular way to consume cannabis. Next time you go into your local dispensary take a look and see if any drinks are available!

Chairman Jordan also predicts that the tobacco industry will get more involved with the cannabis industry. The tobacco and cannabis industry are two sides of the same coin. A good amount of cannabis users purchase tobacco products for smoking, this may be their opening to begin joining forces.

Some of you may be thinking this won’t be the best partnership for the cannabis industry to accept, but that is neither here nor there. When push comes to shove and cannabis is legalized federally, it would not be a surprise for tobacco companies to completely re-brand as cannabis companies. There is no telling what type of “marketing wars” will begin after that.

7. As cannabis is more widely accepted, more Colleges and Universities will begin to offer higher education on the subject as there will be more demand for jobs requiring degrees. Founder and President of Cannulation, Martine F. Pierre stated,

“We will see a new influx of inspiring entrepreneurs, people wanting to transition careers, and advocates emerge.”

As of now, the colleges that offer cannabis classes do not have a full program for an actual degree in cannabis. Hopefully, as more opportunities grow, there will be diverse programs that allow for education in all areas of cannabis.

8. Cannabis legalization will no longer be an issue that is primarily pushed for by Democrats. During 2022, a fully Republican cannabis reform bill, Rep. Nancy Mace’s MORE Act, was introduced and was described as a very comprehensive piece of legislation. The MORE Act (Marijuana Opportunity, Reinvestment and Expungement Act), according to the Marijuana Policy Project, “would end the criminalization of cannabis for adults. It would remove it from the list of controlled substances, eliminating related criminal penalties, and taking several other major steps toward criminal justice reform, social justice, and economic development.” One of the key steps that the MORE Act would add to the American public is, “The measure would impose a 5% tax on the retail sales of cannabis to go to the Opportunity Trust Fund. The measure was amended to start at 5% and increase the tax to 8% over three years.”

9. The American South will likely have more legalization efforts and even successes. Rolling Stone has reported on cannabis being the new “cash crop” for the South. If this is true there will be people who used to oppose cannabis who are willing to coincide if new jobs are made in the state they live in.

Declines in commodity prices could cause devastating repercussions to ripple throughout many communities.” If the states were able to focus their efforts on cannabis instead, as the demand for cannabis is always increasing, they would bring in a lot of capital to better schools, roads, and more.

10. It is extremely likely for any prohibitory efforts against cannabis would be in vain, see 8 and 9. With the majority of the United States having some form of cannabis for sale, it is now much more commonplace to use cannabis without shame. Norml reported that, “eight out of ten Americans support the medical use of marijuana, and nearly 3 out of 4 Americans support a fine-only (no jail) for recreational smokers. Over 60% of Americans now favor legalizing marijuana.” These were recorded in 2022 and are the highest percentage we have ever seen in a nationwide poll.

It’s only January, and we have an entire year to see how much progression cannabis will make. We can only hope for, and vote for, the best! Remember to use your voice this year. If we all work together we can help the cannabis industry put its best foot forward. For all we know, 2023 is the year we no longer have to fight for federal legalization. Let’s stay positive and work to have a wonderful new year.