As the cannabis sector continues to blossom, experts look for industry trends which offer the clearest projections for what’s ahead. Industry insiders have predicted some of the major changes we’ve seen in this space, but they simply couldn’t have predicted the degree of its explosive progress and the resulting demand that we see today.
States in the U.S. continue to loosen restrictions on marijuana laws making it easier for new cannabis entrepreneurs and new ideas to enter the market. Innovation and the growing demand for cannabis products have ushered in fresh eyes and new products to the industry.
What does this mean for the cannabusiness owner? It means integrating technology into cannabis business processes is a requirement to stay ahead of the increased competition and scrutiny.
Here we examine two of the biggest cannabis industry trends and how field-tested technology not only supports, but continues to drive innovation in this growing marketplace.
New Cannabis Product Trends
Some states have attributed up to 30% of all 2018 cannabis sales to vape products and we expect to see this trend continue in 2019. At the same time, flower sales may begin a decline as vapes and infused products steal the market. Product development will continue its shift to meet consumer demands, especially surrounding CBD and low-dose products.
CBD-infused products are growing in popularity, and not just among consumers. Established food and beverage brands are warming to the concept of integrating low-dose or CBD-laced consumables in their product offering. CBD-laced consumables are increasingly being seen as a healthy alternative to many long-standing consumer favorites and include CBD health supplements, coffee, and beauty products.
Slightly newer on the scene are low-dose cannabis products. These are designed to appeal to a broader market and welcome new customers to their brands. This includes beverages, vapes, and ready-to-consume edibles and it’s working. With legal cannabis product being made available to more than half the adult population in the U.S., new customers bring evolving expectations.
Evolving customer demand has driven product research resulting in new product offerings as well. The compounds that give cannabis its flavor also affect the consumer’s sensory experience and they’re called terpenes. Another product variation affects the potency and versatility of cannabis products and known as cannabis distillate oils. As research uncovers more information about the specific uses and effects of different cannabis compounds, operators uncover new and improved formulations for uses in their cannabis products.
Cannabis industry software is purpose-built to manage the cannabis supply chain, the innovative products it produces, and the regulatory compliance demands that govern it. By giving cannabis operators the ability to track products, strains, sales and customer information, cannabis organizations can prepare for and easily adapt to changing demands to get products to market faster.
Cannabis Industry Visibility Trends
The cannabis industry’s evolution, including a trend toward widespread acceptance, means the industry is more visible to entities not typically concerned with the cannabis market. Legalization and rapid market growth have softened public sentiment, delivering legitimacy and forcing big outside corporation to consider the opportunities.
Companies in separate consumables markets, such as Food and Beverage and Pharmaceutical industries, are looking at the benefits of offering cannabinoid beverages and edible products that include CBD and THC. The alcohol and tobacco industries, for instance, are planning to take back some of the marketshare lost when they watched sales drop as a result of the cannabis industry legitimizing and consumers shifting their purchasing choices.
Growth in any industry attracts investor capital and cannabis is no exception. Interestingly, even with a growing pool of angel investors and venture capital firms, institutional investors remain largely on the sidelines. Merger and acquisition activity was high leading into 2019 and made it clear companies are considering consolidation in an effort to achieve growth.
Cannabis ERP provides the most value to growers, distributors, and retailers by capturing seed-to-sale visibility while ensuring regulatory compliance. By demonstrating good business practices and compliance, cannabis industry leaders are able to improve the visibility and credibility of the industry. Cannabis companies are making themselves more attractive to investors and buyers by implementing the right cannabis industry software, achieving better profit margins and operational efficiencies.
Leverage our cannabis industry trends by investing in seed-to-sale ERP as an investment in your cannabis company’s future. The cannabis industry will continue to grow and diversify with new products, new capital and new consumers, so cannabis companies need to find the right cannabis ERP solution for their unique operational needs.
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