Cannabis sales have increased substantially in the last few years, but so has the competition with more growers, retailers and other entrepreneurs vying for a stake in the “green rush.” At the same time, an oversupply of marijuana and the cost of operating in this highly regulated industry are taking their toll.
Here, industry executives predict top trends for 2020.
Cannabis Legalization Is Going Global
Legalization is growing outside of the United States, and countries that are first to the global marketplace can create sustainable advantages for themselves in their customer base and their funding. Kyle Detwiler, chief executive of Clever Leaves, an international operator with brands, extraction facilities, cultivation operations, and other investments in six countries, says that countries like Colombia and Portugal that have been among the first to legalize cannabis “are poised to continue establishing their global dominance in short order.”
The countries’ first-mover status will also be a magnet for financial interest he said. “There is little doubt that the expanding European cannabis market will make it an attractive investment opportunity,” Detwiler said.
Hemp, the source for CBD in many non-psychoactive products, will expand internationally as well, driven by the CBD’s demand. The CBD market will grow to $2.1 billion in consumer sales by 2020 according to the Hemp Business Journal, with $450 million of those sales coming from hemp-based sources. Puerto Rico’s Department of Agriculture has already reported there will be at least 10,000 acres of hemp cultivated for commercial purposes in 2020.
