Every new year brings renewed hope and optimism for the ever-growing cannabis industry. Like many other sectors, the marijuana sector faces changes that could usher in various impactful trends for cannabis businesses. Understanding and mastering these new trends is significant for keeping weed companies relevant and profitable.
Quite frankly, 2022 was a tough year for the marijuana industry. Despite the legalization of cannabis in a few states after the midterm elections, economic headwinds and industry-specific obstacles like overproduction made it a challenging year for the sector.
Even so, the new year promises better market conditions and new opportunities. Here are some of the top cannabis industry trends to keep a lookout for in 2023 as we move into the new year.
Market Growth and More Legalization
There’s no denying that most people are changing their perception of cannabis as they learn of the plant’s potential medical benefits. The increased support for cannabis in polls and elections is a clear indication that support for marijuana is at an all-time high. Consequently, we can expect the push for federal reforms of cannabis to continue into the new year.
Analysts predict that more states will legalize weed in 2023. However, while this is good news for industry players, they must also gear up for new challenges. The market’s growth brings more stringent regulations and competition, making it difficult to do business.
Increased Consolidation in Key Markets
Despite doing surprisingly well throughout the COVID-19 pandemic, the cannabis industry doesn’t appear as recession-proof as many thought. Due to overproduction and immense competition, weed companies in mature recreational markets are struggling with falling prices. Some cannabis markets have even reached saturation, causing businesses to incur significant losses.
As a result, cannabis brands across the industry, from retailers of marijuana accessories to cultivators and producers, are cutting employees to ensure they remain profitable. Similarly, large corporations are absorbing licenses from failing weed brands. Hence, only the most cost-efficient firms are able to stay operational.
More Brands Will Embrace Sustainable Packaging
Another trend we can expect in 2023 is the increased use of biodegradable packaging. Many companies are actively trying to reduce their carbon footprint as the world continues grappling with climate change’s dire effects. As a result, this has caused the rise of sustainable cannabis packaging.
Many cannabis companies are earnestly investing in sustainable packaging products and improving their business practices to protect the environment. Besides reducing their carbon footprint, weed businesses also gain new environmentally conscious customers.
More Data-Driven Marketing
The weed industry attracts consumers from various demographics depending on the products. Another trend we are likely to see in 2023 is more data-driven marketing. Making advertising decisions
blindly and guessing who your customers are is now a thing of the past. Marijuana brands are beginning to take advantage of the demographic and market data at their disposal to optimize their marketing strategies.
Increased Use of Custom Packaging
The marijuana industry is among the fastest-growing sectors of the economy. Even so, this exponential growth means the market is getting flooded by more and more cannabis brands, which increases competition among companies. Consequently, businesses must find ways to differentiate themselves, and excellent cannabis branding has proven to be an effective way to do so.
Using branded cannabis packaging, such as customized mylar bags and personalized tin containers, is an excellent way to advertise your marijuana brand. Creating cool logo designs and placing them on your product packaging makes it more memorable to customers. Similarly, it is easier and way cheaper than paying for ad space on billboards, newspapers, and magazines.
The Bottom Line
As we begin the new year, we can expect many novel trends in the cannabis industry. Understanding and adopting these trends is significant for the success of cannabis businesses. The information provided here can help guide weed business owners in the right direction and position them for success throughout the year.
