The challenges presented by 2020 significantly impacted industries everywhere, with countless businesses closing their doors forever. Luckily, the resilient cannabis community endured the chaos with determination and came out top. Perhaps the most historically significant highlight of the year, the herb industry was deemed an essential business by several states.
The landmark ruling allowed dispensaries and equipment distributors like MJ Arsenal to remain operational during the tumultuous year. As flower-friendly businesses became one of the few industries to stay open, countless job opportunities were created and provided a solution to the growing unemployment crisis. In addition to market expansion, legalization swept through states like Mississippi and Montana. Now more than ever, American’s have access to the organic herb, with an estimated one in three individuals living in a state where recreational use is legal.
The future is only getting brighter for the budding industry, although as the market expands in 2021, the community will face inevitable hurdles. Despite the market’s proven financial success, banks remain apprehensive about granting loans to prospective flower businesses, and without financial backing, companies are vulnerable to bankruptcy and instability. Insurance companies also reflect unfounded skepticism, continuing to categorize herb companies as high-risk. Proponents of legalization must address structural barriers through legal efforts if the cannabis industry should continue to grow.
Despite every obstacle the flower community faces, the industry will persist as a source of innovation and inspiration. Here are five trends to keep on your reefer radar in 2021.
Decriminalization at the federal level
With the Presidential Cabinet swapping in 2020, the herb industry gained a potential pathway to federal reform. Both President Joe Biden and Vice President Kamala Harris have indicated a less aggressive stance, with Harris co-sponsoring the MORE Act. This bill would impose a 5% tax on hemp purchases and redirect the money into communities disrupted by the War on Drugs. More tolerant federal leadership combined with growing public support make for a promising future in the herb industry.
The rise of minor cannabinoids
Tireless research of the herb and its properties has uncovered numerous minor cannabinoids. TCH and CBD are just two of the well-known compounds found inside flower, with an estimated 120 cannabinoids residing in the plant. CBN and CBG are quickly becoming celebrated for their therapeutic effects on the body, ranging from anti-inflammation and appetite suppressant qualities.
Hemp businesses must adapt
The pandemic has hugely impacted how consumers shop for products, including herb. Now, shoppers prefer making contactless purchases, meaning retailers who operate exclusively in-store may inevitably fail. Dispensaries and equipment shops that haven’t developed delivery services or curbside pickup options must adapt in 2021 or risk extinction.
THC strains reign supreme
Over the past few years, consumers have consistently pledged their allegiance to strains high in THC. The taste for the psychoactive flower is only growing as people search for ways to escape the chaotic pandemic lifestyle. As the demand for THC-heavy herb heightens, manufacturers and growers will need to develop new potent strains at a competitive price point to keep customers flocking to their stores.
A step toward hemp banking reform
President Biden has previously pledged to tackle decriminalization at the federal level during his administration, a move that would eliminate penalties for bud and concentrate use. Furthermore, the House introduced legislation that would allow banks and credit unions to provide risk-free financial backing to budding companies. Banking reform would give the hemp industry meaningful economic stability and encourage legitimate investment in flower.
Bottom line
Having been deemed essential by several states, the herb community thrived throughout the tumultuous year of 2020. Looking forward, big industry players must tackle the financial and legal barriers that prevent them from truly dominating. Despite every necessary adaptation and reform, the future remains exciting, bright, and green.
