Now that the new year is here, cannabis industry executives can expect to face a crosscurrent of trends in 2022.
Some will be positive for the industry; others, negative. Some will be new; others, a continuation from 2021.
To name just a handful:
- Additional states will legalize marijuana in some form.
- Calls will grow for greater participation among minorities in the cannabis industry.
- Climate change fallout will continue to wreak havoc for marijuana companies.
Below are MJBizDaily‘s top 10 trends to watch for in 2022:
- M&A will march on.
Smaller M&A deals will likely continue at a rapid pace and even accelerate across the United States as capital-flush multistate operators build out their footprints in high-growth marijuana markets.
In Florida, for example, MSOs made a flurry of acquisitions in 2021 totaling more than $500 million. The goal: Make inroads into Trulieve Cannabis’ domination of a medical marijuana market where annual sales top $1 billion.
Pennsylvania also was a hotbed for MSO dealmaking.
In mature markets such as Colorado, the trend of vertically integrated companies snatching up smaller, one-off companies will persist.
Columbia Care’s acquisition of Denver-based Medicine Man – completed on Nov. 1 – highlights the accelerating consolidation of the Colorado cannabis market.
- Brands will grow across all sectors, including cultivation, retail and infused products.
We’ve already seen a select few flower and edibles brands expand across the U.S. and internationally – think Cookies and Wana Brands.