The state-legal cannabis industry has had a fantastic run over the past decade. More than 30 states have passed either recreational or medical cannabis legislation so far, and the sector has created thousands of new jobs and brought in billions of dollars in revenue. As several states consider passing cannabis legislation this year and lawmakers mull over federally decriminalizing cannabis, the industry is poised to grow even more.
Niche cannabis products especially are a space that is going to explode as the industry becomes older and more mature. The following are four trends that may gain more steam as the year progresses:
Terpenes will gain more visibility. Everyone knows about THC, the main psychoactive component in cannabis, and CBD, a cannabinoid with great medical potential. Alongside flavonoids and esters, terpenes are responsible for the cannabis’ strong aromas, and they work together with cannabinoids for a more wholesome effect. However, although most brands do not contain or display terpene levels, this will soon change as people become more aware of their presence and significance.
As the science evolves and catches up, we will soon see sellers employ labs to test for terpenes, flavonoids and esters, and display this information on their packaging. Companies that do this will differentiate themselves from their competition and attract customers who are looking for products with a more wholesome terpene profile.
Market differentiation will also become a reality as the industry matures. Right now, most consumers have trouble identifying a single brand, especially based on their products. But as the industry opens up, we will see the entrance of more sellers with niche, identifiable products. Consumers will soon be able to distinguish between mass-market cannabis and craft cannabis from smaller niche companies.
Consumers’ knowledge and expectations are bound to increase as the industry ages. With some states such as California having launched legal recreational markets years ago, their consumers are more educated and more demanding than they were when adult-use cannabis was newly legal. They will want to know where the cannabis they are purchasing was grown, what exactly is in it and whether it is organic. Consequently, we can expect the introduction of organic equivalent certification, especially for craft and niche cannabis producers, as in the wine industry.
Finally, the low-THC market will see major growth. Anyone who consumed cannabis 10 to 20 years ago knows that cannabis has become a lot more potent these days. But not everyone is a fan of cannabis with 20% THC, and sellers are soon going to target this growing market segment. These consumers tend to be older individuals with more disposable income, so the market is sure to see exponential growth as breeders and growers provide more low-THC options for them.
These predictions aren’t far-fetched when you think about them, especially when you see that companies such as Grapefruit USA Inc. (OTCQB: GPFT) have made significant strides in growing their niche brands.
NOTE TO INVESTORS: The latest news and updates relating to Grapefruit USA Inc. (OTCQB: GPFT) are available in the company’s newsroom at http://cnw.fm/GPFT
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