How The Cannabis Industry Can Overcome Small Speed Bumps On the Way to Success
In 2020, the cannabis industry and marijuana stocks have well-outperformed expectations. Although many pot stocks like OrganiGram Holdings Inc. (OGI Stock Report), Sundial Growers Inc. (SNDL Stock Report), and Tilray Inc. (TLRY Stock Report) are down for the year, they have posted gains in the past few months. Other pot stocks like Valens Corp. (VLNCF Stock Report) and Innovative Industrial Properties Inc. (IIPR Stock Report), have performed much better than expected in that time frame. With that in mind, there are plenty of challenges that the cannabis industry faces in the future.
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While we do know the legislative challenges in the U.S., it’s worth taking a step back to look at the broader speed bumps of the near future. These challenges include aspects that small and large cannabis businesses can solve on their own. But, it will also take a widespread industry cooperation effort to get cannabis stocks to where they could be. In the past few years, the cannabis industry has come very far. In the next few years, investors and analysts expect that there will be a great deal of growth. But, in order to get there definitely needs to be some changes around the cannabis industry.
The Public Misconception Of The Cannabis Industry
In the past few months, we have seen more consumers buy cannabis than in many years prior. This is due to the demand increase that has occurred as a direct result of Covid. And with all of these new marijuana buying customers, there seems to be some general confusion around the plant itself. Those who are long time smokers typically know what they want. In addition, they usually know how certain products will affect them. But, for newcomers, the world of cannabis can be quite confusing. Imagine never having smoked weed before and then walking into a store to purchase for the first time.
There’s no doubt that this would be a confusing experience given all the strain nomenclatures and the colloquial language around cannabis. This issue also tends to be about transparency in individual products. Often times, cannabis companies are not concerned with new customers and package their products accordingly. This however can serve to confuse and mystify the buying process around cannabis. In short, packaging and the experience of buying cannabis can be updated to better suit newcomers.
Marijuana Stocks Get Blamed For Product Safety And Consistency
In states where marijuana is recreationally legal, oftentimes consumers are using marijuana for that purpose. And despite there still being a very large medicinal marijuana industry in the U.S., it can get lost behind the recreational market. This, however, can be a big disservice to those who use cannabis for medical purposes. Imagine going to the pharmacy to pick up a prescription and having the strength of the drug be different every time. This can often be the case for patrons of the cannabis industry. In the past few years, testing and labeling have gotten much better. The restrictions in states where cannabis is allowed have also gotten much tighter. This means that this issue is one that is being solved.
But, the issue remains of how medical patients can get consistent medicine every time they need it. In addition, there are a lot of issues surrounding the requirements for cannabis testing. This means that products can vary greatly in strength despite coming from the same company. It would be easy to blame cannabis companies for this, but the real blame falls on to the U.S. government. Because it has not legalized or decriminalized cannabis federally, there are little to no restrictions on how it can be sold. With the upcoming election, things could change on this front for the better. But for now, there needs to be a greater amount of quality control and testing procedures in the cannabis industry.
What This Means About The Future Of The Cannabis Industry
Marijuana stocks have a lot of responsibility to their customers. Despite how large some companies have grown, many have worked to keep the same mentality that a small business would have. With that in mind, the desperate need for new laws is extremely apparent. In order for the cannabis industry to meet its full potential, there are some factors that without a doubt have to change. 
As of 2020, it looks like things could be going in the right direction. As stated before, the upcoming election is a big factor in the future of marijuana stocks and the cannabis industry. While the industry is far from perfect, cannabis companies do seem to be doing their best to serve their customer’s needs. With that in mind, the hopes are that we can begin to see better changes go into effect in the next few years and beyond.
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