The cannabis industry is booming. With recreational and medical marijuana now legal in many states, the demand for cannabis is at an all-time high. In fact, according to Forbes magazine, the size of the US legal pot market was worth $50 billion 2028! In Canada, retail cannabis sales are growing at 124%.
The Future of the Cannabis Dispensary Industry
The future of the cannabis dispensary industry is bright. Global cannabis sales are expected to reach nearly $149 billion by 2031, up from $13.4 billion in 2017, according to research firm Arcview Market Research and BDS Analytics. And though it has seen significant improvement over the past few years--particularly around legality--this burgeoning market will continue to face many challenges as it continues to grow.
What types of changes do we expect? How will these affect consumers, retailers and distributors? And what does this mean for you if you're currently working within this industry? We'll dive into those questions here so that by the end of this article you'll have a better idea of what lies ahead for everyone involved with selling marijuana products.
How New Technologies Are Changing the Game
While the legal cannabis industry continues to grow, banking will remain a challenge. Banks are reluctant to work with cannabis companies due to federal regulations prohibiting them from doing so. As a result, many dispensaries have had trouble accessing traditional banking services and have instead turned to cash only or alternative methods of payment like cryptocurrencies and gift cards.
Payment experiences need to match the best retail experiences in order for consumers to continue buying from you in person or online--and that means integrated point of sale (POS) systems that allow customers to pay with their favorite method or service (e-commerce platforms like Shopify) while still providing them with an exceptional experience at checkout (like Buy Now Pay Later).
A Look at Emerging Trends in the Cannabis Industry
As the cannabis industry continues to evolve, there are several trends in store design that will help dispensaries differentiate themselves from one another and attract new customers.
One of these emerging trends is the inclusion of accessories in dispensaries' product offerings. A recent survey conducted by Arcview Market Research found that consumers spend an average of $200 on accessories when they visit a dispensary--a figure that's expected to rise as more stores begin carrying them. While some dispensaries may choose to carry only certain types of accessories (such as vape pens), others might put more emphasis on these products because they offer higher margins than flower or edibles do.
Another way dispensaries are adapting to the pandemic is by augmenting their product offerings with other items that aren't strictly related to cannabis itself--but can still appeal strongly to users who enjoy smoking weed or vaping concentrates from time-to-time!
What To Expect From the Future of Cannabis Dispensaries
As the industry grows and matures, we can expect to see more pricing pressure on cannabis dispensaries in Canada. As States in the US continue to adapt, they'll likely follow Canada's lead by creating regulations that allow for licensed businesses to operate within their borders. This could mean stricter regulations around where dispensaries can operate or how many licenses they're allowed to have.
As with any new industry, there will be winners and losers as companies compete for market share. Some brands may find themselves unable or unwilling to follow these new rules (like those who don't want their names associated with cannabis) while others will adapt quickly enough that they still come out ahead even if they lose some customers along the way.
We've seen a lot of changes in the cannabis industry over the past few years, and it's clear that there will be many more to come. The future holds promise for both consumers and entrepreneurs alike, but it's up to us as individuals to make sure we stay on top of trends so we can stay competitive in this growing market.