Legalized Cannabis Market – Multi-Purposed & Multi-Faceted Product Developments Favor Growth
As cannabis is getting gradually legalized across the US, doors are opening wide for investors and businesses to expand in the pot space, with companies scrambling to capitalize on surging marijuana demand with new lines of hemp-infused products. Transparency Market Research (TMR) compiled a study on ‘Legalized Cannabis Market’, which, according to the study, is witnessing colossal changes. Several industries have noticed the ravenous appetite of consumers that exists inside the cannabis culture, and thus, it is highly likely that the prospects remain promising for legalized cannabis manufacturers. Nevertheless, the cannabis economy is riddled with several hindrances to success, and tapping into this lucrative landscape is not going to be an easy task.
The complex yet multi-faceted and purposeful nature of legalized cannabis has enabled myriad segments of the consumer products industry to exploit its opportune potential. The surge in the demand for legitimate marijuana is evident, with the value of legalized cannabis market in 2018 estimated at nearly US$ 20.0 Bn, according to the study.
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The legalized cannabis market is projected to grow over 4X between 2018 and 2027. Established companies in every consumer industry are taking a close peek into methods and formulations for infusing THC, CBD, or both in an array of products.
What are Key Trends in the Legalized Cannabis Market?
The legalized cannabis industry is closing in on a more sophisticated customer base that seeks variety in products with different potency levels, effects, and prices. Increasing demand for luxury skincare products, such as edibles, and organic options, continues to create opportunities in both wellness-focused CBD variants and larger-than-ever adult-use space. In response to these opportunities, the manufacturers in legalized cannabis market focusing more on branding activities. Meanwhile, as the market grows vis-a-vis product diversity, legalized cannabis will gain a notable traction alongside demand from enthusiasts for various flavored products. Terpenes are one of the key ingredients of legalized cannabis, which have gained utter popularity in the recent past, with their ability to enhance the effect of ‘high’, and give weed an appealing flavor and essence.
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The evident legitimacy and regulation-approved safety mark associated with legalized cannabis has led its adoption among new mothers. Post-federal legalization of marijuana in Canada, mothers have started consuming pot and its various incarnations to deal with everyday pressures, stresses of motherhood, postpartum depression and anxiety. Sublingual spray is one such convenient, THC-infused ingestible liquid that is spreading fast in mom circles.
Growing awareness pertaining to convenience of ingestion modes and doses of legalized cannabis is complementing the infiltration of low-dose products and variants other than flower in the legalized cannabis landscape. Significant number of ready-to-consume edibles, beverages and vapes are likely to show up for both recreational and medicinal applications of legalized cannabis in the upcoming years, with a specific focus on highly versatile and potent distillate oils.
Legalized Cannabis Market: Product Variety & Branding Remain Key Winning Strategies
The CBD-dominant legalized cannabis infused products are witnessing significant traction, with demand from canna-curious novice users, who want discreet, convenient, and controlled dose of legalized cannabis. Growing interest of first-time consumers in discreet forms of consumption, and their increased inclination towards edible products first before jumping to inhalables, will continue to drive demand for CBD-based legalized cannabis infused drinks. Following the legalization of marijuana in Canada, beverage companies have increased the production of legalized cannabis infused drinks in different flavors, to tap growing demand from enthusiasts. Technological advancements and developments in processing and production processes are key strategies adopted by leaders in the legalized cannabis landscape to maintain a competitive edge.
Legalized Cannabis Market Remains Consolidated among Established Brands
- In May 2019, Stenocare announced that the company is all set to roll out a new medical cannabis product – CBD Capsules STENOCARE – in June.
- In April 2019, Medical Marijuana Inc. launched a new CBD infused personal care line under the brand ‘HempMeds’, which offers shampoo, conditioner, body wash, and body lotion.
- In December 2018, Canadian medical cannabis company Tilray, Inc. entered into a partnership with a division of Swiss drug giant – Novartis AG – to develop and distribute medical cannabis in legal jurisdictions worldwide.
- In August 2018, Hexo, a leading cannabis company in Quebec entered into a partnership with Molson Coors to manufacture non-alcoholic, cannabis-infused beverages in Canada.
The market for legalized cannabis market continues to remain clustered among leading brands, which collectively accounting for over 80% shares, according to the study. Leading companies that process and manufacture legalized cannabis continue to consolidate their position in developed markets – North America and Europe – attributed to the obvious aspect of favorable regulatory approvals for medicinal and recreational use of legalized cannabis in these region. However, the legalized cannabis market, due to its volatile nature could witness a palpable bifurcation between established players and entrepreneurs. Up until now, legalized cannabis has been a ‘rising tide lifts all the boats’ sort of space, however the tables are expected to turn around anytime soon.
Legalized Cannabis Market – Analyst Point of View
The legalized cannabis market will continue to remain highly lucrative for businesses, with novel product launches, new capital investments, and the ceaseless entry of canna-curious novices in the marijuana space.
Established legalized cannabis manufacturers, with their potent business plans, are likely to witness a colossal lift, as more consumers are willing to spend on processed cannabis. This, coupled with shifting consumer preference for convenience in pot consumption, will continue to favor the legalized cannabis industry. The legalized cannabis market will also witness a remarkable penetration of large non-weed-related corporations, which eye exploiting the opportunities in the legalized cannabis market through product design, strategic partnerships and collaborations with producers.