Business

Despite being a nascent and still federally illegal operation, most states deemed cannabis companies and ancillary services as essential businesses when COVID-19 hit the U.S. Since that time, consumer demand has sustained – if not grown – and patients have been able to continue getting their medicine. Now, the legal cannabis industry is looking towards the future and “new normal” with expanding, legitimized workforces that have kept the industry alive during a national economic downturn.

Start by understanding what works and what doesn't work.

The cannabis industry has a testing problem — and it may not be going away anytime soon. Why? Inexperienced technicians, unscrupulous labs, outdated testing regulations, and inferior testing equipment all factor into the inconsistencies and false results that plague the business. 

A Congressional report quantifies what we all suspected was happening: Drug cartels are taking a hit as the legal cannabis market expands.

Legal marijuana entrepreneurs are finally starting to win the battle against a long-time enemy—the illicit market. For years, black market operators have undercut cannabis prices and taken away part of the cannabis market share.

As of Wednesday, the universe of cannabis-focused exchange-traded funds (ETFs) has grown by one. The AdvisorShares Pure US Cannabis ETF (NYSEARCA: MSOS) began trading on September 2 at a per-share price of $25.00 and 100,000 shares outstanding.

As the West Coast matures from the early Green Rush and Midwest markets like Michigan and Illinois hit their stride with recent legalization, all eyes are on the Northeast as the sleeping giant that will radically change the national cannabis landscape for 2021 and beyond.

Although the Canadian cannabis retail sector has not lived up to the expectations that were associated with the 2.0 market, the industry has recorded major advancements so far this year. From the number of open retail outlets to the types of products that are being offered to consumers, the landscape of the Canadian cannabis retail market has been slowly changing for the better.

Investors and innovators are always looking for the best areas of growth in the public sector. Currently, investing in the cannabis industry has proved to be one of the most beneficial returns. With the current cannabis movement across the world, the emerging U.S. market has made investors even more eager to invest in this space.

When Congress passed the 2018 Farm Bill and the U.S. president signed it in December of that year, hemp was removed from the list of Schedule I drugs that includes heroin, cocaine and marijuana. Products derived from industrial hemp containing less than 0.3% by weight of delta-9 tetrahydrocannabinol (THC) became legal and led to what became known as Cannabis 2.0, the sale of non-psychoactive products derived from industrial hemp.

In early 2020, the world as we know it changed when COVID-19 erupted into a global health crisis. This virus continues to wreak havoc on public safety and the economy, sparing no community or industry. Despite these challenges, the cannabis industry has shown incredible resilience through these uncertain times. 

In 2018, sales of medical and recreational cannabis in the United States were nearly nine times higher than sales of Oreo cookies, according to a report from New Dawn Risk entitled, ‘Understanding and opening up the US cannabis insurance market’. Despite the significant demand – the US market saw an estimated $8 billion in legalized cannabis sales in 2018 – there are a few big problems blocking the way to further progress in the US cannabis industry.