At this point, it’s safe and sad to say the last few years have been tough for the economy and have left many companies scrambling for more revenue and increased profits. However, the cannabis industry has continued to show excellent growth according to timely statistics, but there appears to be more than meets the eye when it comes to these figures. At first glance, these numbers are looking promising when you consider:
- Cannabis sales globally are set to reach $31 billion in 2021
- That’s an increase of over 40% from 2020
- Members of the M&A (Mergers and Acquisitions) team have reached record levels during the same period
What About Slumping Stock Sales Compared to Pandemic Profits?
While the future of the cannabis industry is looking bright, recent stock market numbers for this industry (and many others) have taken a nosedive lately. Many are blaming the pandemic for sluggish performances on Wall Street, but the outbreak of the Coronavirus hasn’t seemed to stunt the continued growth of cannabis sales overall.
Some are speculating that these sales may be strong from the potential side effects of the pandemic. Think of it this way, concerns about the virus itself, the practice of social distancing, lockdowns, isolation, financial strain, and other worries have created stress and depression for many. Perhaps people are turning to cannabis for relief either recreationally or medically.
How Do Politics Come into Play For Those Producing These Products?
Just like any business or industry operating during these difficult times, looking forward to the future is sketchy at best and faces challenges from Uncle Sam. Some hurdles facing the cannabis marketplace are an ever-changing landscape with unsettled politics and possible pending legislation being put into place at any time. While it may seem that marijuana use either for medicinal purposes or recreational reasons is legal almost everywhere, but that’s not the case. There’s also an issue since cannabis is still considered illegal on a Federal level and rules will vary according to location.
For example, when 2021 came to a close, only 18 out of our 50 states consider cannabis use as legal inside their boundaries. That includes possession and growth (at certain numbers), but still leaves other questions and their answers up in the air. In another case, what about sales, storage, and installation in different counties or cities? For the most part, numbers are all over the map when it comes to the application process, fees, fines, and restrictions for breaking the rules in different providences.
Are There Financial Challenges Facing the Cannabis Industry in the Near Future?
Especially for startups, getting financing or borrowing operating capital during difficult times is often a key component in success for businesses in general. Due to the questionable legal status of cannabis products, sometimes these funds aren’t available from Federally insured institutions. However, for many reasons given everything from today’s online investment opportunities to other non-tradition ways to raise business capital, this should be a minor obstacle to overcome.
Will Cannabis Investors Still See a Brighter Future in 2022 and Beyond?
A short answer to this question is yes. Despite some minor obstacles, the future is still looking bright for investors and manufacturers in the cannabis industry. The best way to ensure things will go smoothly with any business is by plugging into today’s technology and using it for all that it’s worth. One of the ways associative software is succeeding is by streaming various processes together that remove many of the hassles out of day-to-day operations. Contact us today and find out how to get involved in this industry and reap the many rewards when investing in these products.