The move marked a new chapter in the cannabis industry. Aside from prescribed medical marijuana, cannabis in its different forms is also used in other products, including supplements designed to help treat anxiety issues. In fact, CBD oil is one of the most popular products in the industry right now.
As we venture into 2019, signs of the cannabis industry becoming even more potent can be seen already. More companies are expanding to new markets across the globe, particularly in the UK, US, and Europe. New and improved products derived from cannabis plant are delivering more benefits to its users too. So, will the cannabis industry be the next big thing in 2019?
A Sizeable Market
It is worth noting that the cannabis industry as it is right now is already big and lucrative. In the United States, medical marijuana is now legal in almost all states, while its use for recreational purposes is gaining traction in some of those states.
The growing acceptance stimulates the industry in many ways. There are more shops and online retailers offering access to cannabis-based products, including those designed for recreational use. On top of that, the market for products derived from the cannabis plant is only getting bigger.
We have CBD oil, a legal derivative made from mixing oil from the cannabis plant with coconut or hemp seed oil, being sold online and offline. The lack of Tetrahydrocannabinol (THC) allows CBD oil to be classified differently; it is legal in most areas where other cannabis products are classified as controlled substances.
We can expect the market to be substantially bigger this year, but it is difficult to ignore the fact that the cannabis industry is already sizeable as it is. That huge market coverage powers the growth of the industry even further.
Investments in R&D
What’s interesting about the cannabis industry is its willingness to invest in research and development. For many stakeholders in the industry, R&D is an important element that cannot be separated from the industry itself.
In recent months, we saw new strains being developed to meet specific market demands. Advanced technologies – including high-level DNA structuring and new ways to maintain production of cannabis plants – are being absorbed at an incredible rate.
The same attention to R&D is also seen upstream. Marijuana seeds now come in different variants. We also have feminized cannabis seeds of different varieties being made available. These are products with multiple uses, and they are available from top retailers such as seedsupreme.com who stock both common and rare strains from all around the world.
Even the delivery methods have been improved. Borrowing technologies from the vaping industry, the cannabis industry was able to bring vaporizers to this market. Better cannabis concentrates – including cannabis oil and wax – also make the use of vaporizers more efficient.
Pax by Ploom is a good example of how far innovation has affected this industry. Pax itself is a device that utilizes a specially-designed metal chamber and conduction. Devices that use concentrate cartridges are also more efficient and come with more features.
Digital Marketing as a Close Ally
The cannabis industry owes much of its success to digital marketing. Without digital marketing, it is difficult to imagine such a limited industry growing to its present scale in just a few years. In fact, the cannabis industry and digital marketing are in symbiosis.
We saw campaigns promoting CBD oil and similar products virtually everywhere last year, but these campaigns are run responsibly. By using advanced targeting and big data, stakeholders in the cannabis industry have successfully limited the reach of their marketing campaigns to the correct target audience. Other industries, including the world’s liquor industry, are now implementing the same approaches to allow for better digital marketing with higher ROI.
Another interesting point about the relationship between the cannabis industry and digital marketing can be seen in the content of the marketing campaigns. The industry is one of the few that actually promotes responsible use as a key message.
Even with CBD oil and products derived from it – which are classified as safe for everyday use – you still see a very responsible digital marketing campaign done with incredible attention to details. The R&D prowess of the cannabis industry has been bringing new advancements to digital marketing as well.
A Lucrative Future
The future of the industry is looking brighter than ever. With so many opportunities to seize, it is not surprising to see new entrepreneurs and existing businesses branching out to new markets at incredible speed. Unfortunately, this is still an industry with high entry barriers.
New regulations are being introduced to the market in an attempt to create a more structured, better-regulated industry as a whole. Existing stakeholders welcome those changes and new regulations, but that doesn’t mean the changes are not impacting the market.
This is where the challenge lies for new players. Yes, you can be a cannabis entrepreneur. You also have a vast product line-up to choose from in this industry. Entering the market, however, still requires a lot of planning, a good understanding of the market landscape, and extra care.
Tackling these challenges may not be easy, but the rapid growth of the cannabis market size remains too good to be missed. That brings us back to the first fact presented in this article: Canopy Growth’s move to the UK. Last year, the company generated more than C$80 million in sales; it is looking to double that amount this year with various expansion plans.
That’s only from one company. Other corporations in this industry are showing similarly rapid growth and high return on investment. The industry has a lucrative future indeed. As more markets open up to cannabis-based products and allow medical (and, eventually, recreational) use of marijuana, expect to see other companies in the industry creating as big of a headline as Canopy Growth did.