The cannabis industry consist of all the activities and professionals like legal producers, cultivators, regulators, researchers that are directly related to the production transports, sale or even consumption of marijuana and hemp and the products that are derived from it.
Now 2018 has been a great year for the legal cannabis industry. Several places legalized the use of marijuana for medical purposes. This led to a tremendous rise in the stock market for many companies that are involved in this. Now 2019 can prove to be a year of sudden change. It may take the cannabis industry to new height or it may also take them down. All depends on the manner in which they overcome the challenge that will be facing in 2019. Some of this challenge is mentioned below-
- The growing interference of other companies that do not belong to the cannabis industry
With the establishment of cannabis industry sue to the government improvement the stocks of companies have raised high. This in turn has started attracting other companies as well which are not into this business. Companies that re into the business of alcohol and tobacco have started intervening in the cannabis business. Now while the companies which have been in this industry for a long time are struggling to take their business to greater extent, with the arrival of other new companies they may have to face a hard time in establishing themselves.
- The introduction of new products
The introduction of new products like the innovative hemp and other product which are CBT based, vamping equipment and edible are only going to bring new challenges to the cannabis industry. Although not all of these are going to have a devastating impact on the cannabis industry but some of them are going to come up as the game changers. Some of the market analyst expects that the hemp product will be on the rise in the year 2019 thus impacting the cannabis market.
- The unpredictability of the US market
The US market has always been known to be a highly completive space for the cannabis industry. This is because even though many states in the US have legalized the cannabis, at federal levels cannabis is still illegal. So if the companies want to open a shop they have to go through the myriads legal and deal with the financial obstacles. Also exporting such products are completely illegal. Thus the challenge is that the companies have to find a solution to develop into a large scale market and to find a way to break into the US market just like the Canadian market.
- The test of the Canadian legalizations
Since the time Canada has legalized the cannabis industry, it likely that in the coming time the distributors will be getting an accurate assessment of the effects of this legalization. Now since some analysts have predicted some significant changes, this may end up being a disadvantage to the investors. As a result the manner in which the legalization of cannabis industry impacts the Canadian market may end up affecting the other market globally. Thus this is a big challenge in front of the cannabis industry these days.
Thus with the growing popularity of the cannabis industry more and more challenges seem to be coming in its way especially in the year 2019. It will be quite interesting to see how these challenges are being dealt with and do they manage to overcome it successfully or not!