According to Fortune Business Insights, the cannabis industry is growing rapidly. In 2021, it was sitting at $28.266 billion, with experts expecting it to reach $197.74 billion by 2028, with a compound annual growth rate of more than 32% in the 2021-2028 period. While growth in any industry can be expected during exciting times of innovation and development, the cannabis industry seems to be in a league of its own, and some of the following factors might be contributing.
The Farm Bill Act 2018
Significant growth from 2018 onward can undoubtedly be linked to the signing of the Farm Bill 2018, which made hemp and hemp-derived products, such as Delta-9 THC, legal to consume. This act was the turning point for hemp and cannabis manufacturers, who could start making a wide range of products like edibles, tinctures, and gels and sell them to the general public.
Signing the Farm Bill removed hemp, defined as cannabis, and its derivatives, from the Controlled Substances Act as long as it had low concentrations of Delta-9 THC. The bill set the limit at 0.3% THC dry weight.
Relaxed Banking Regulations
While manufacturers were now able to create cannabis products for consumers to buy legally, they encountered other hurdles, particularly relating to finance. Banks weren’t always able to offer their services to marijuana companies, making it challenging for entrepreneurs to fund their new business ventures.
However, the House of Representatives passed the HEROES act in 2020, along with the SAFE Banking Act, and presented it to the Senate. This meant banks would now be able to offer services in states where cannabis was legal, making it much easier for businesses to start up, turn a profit, and experience growth, thus adding to the growth of the industry overall.
Demand for Medical Use
Researchers and medical professionals have been working hard in recent years to delve into the potential benefits of medical hemp. As a result, many countries and states within the United States have now permitted it to be used for specific medical conditions. Even states that don’t allow it recreationally have made the bold move to legalize it for medical use. Cannabis is also currently being used by mainstream doctors for the treatment and symptom alleviation of conditions like cancer, anorexia, and arthritis.
Wide Product Variety
Many people chose not to consume cannabis in the past due to the limited range of consumption options. If you wanted to enjoy its effects, you often had to smoke it in joint form, and this wasn’t everyone’s preference. However, suppliers have now come up with a variety of consumption methods to meet consumer demand, such as gummies, energy and sparkling drinks, confectionery, and even creams, lotions, and tinctures.
You’re still able to enjoy cannabis flower in joints you roll yourself or pre-rolled joints, but you’re now able to enjoy Delta-8 and Delta-9 in a variety of other convenient, delicious, and discreet ways if that’s your preference.
The cannabis industry is showing no signs of slowing down, with it adding billions of dollars to the economy. Due to consumer demand, growing medical proof of its potential efficacy, and relaxed regulations, there’s every reason to believe it will continue growing in the years to come.
