Our five mega trends combine a host of other trends that have shaped the cannabis industry to date and will continue to influence the market over the coming years. By tracking and identifying the key trends occurring across the global cannabis marketplace, Prohibition Partners is quickly able to reach a critically defined understanding of the future course of this highly dynamic and rapidly evolving marketplace.
For 2020, Prohibition Partners has named Normalisation as its trend of the year but we also expect to see more developments based around the following trends:
THE TRENDS THAT SHAPED 2019
1. The Green Rush
Likened to the gold rush, cannabis represents a new commercial opportunity that will likely reach every corner of the globe. The Green Rush is not only a rush to secure the first-mover advantage, but is also a race for scale, size and eminence, as typically in any industry, a few large players will eventually dominate. This is not only being seen by the companies operating within this space, but also by governments who now recognise the latent potential of cannabis as a medicine as well as a source of state revenue.
For 2020: As the industry enters its first period of global economic instability, 2020 is likely to diminish the appeal of the industry to opportunistic and speculative investors. Companies will look inward, focusing on shoring up operations and profits. Mergers will remain limited but savvy investors will look to find opportunity in emerging sectors such as ancillary services, technology, biomedicine and brands.
2. CBD Ubiquity
CBD is an entirely new consumer product that has exploded into the global consumer marketplace across many categories and sectors. News of the product’s wide-ranging benefits is spreading fast, and consumers seem to be highly receptive to consuming it in a number of forms. Already, major players like Canopy Growth, Tilray and Cronos have invested hundreds of millions in new CBD ventures.
For 2020: We will see more and more industries across the board incorporating cannabidiol into their product ranges. This is likely to spill over into a greater array of food products, and food operators with clean eating and veganism are likely to be key conduits. Sports performance (including sports drinks) and recovery/injury products will also be a major category in development that will also pay greater attention to CBD; however, we may also see the entire sports drinks category shift its focus in favour of mental stimulation and nootropics (including CBD) rather than on simple physical exertion, as the drain on mental time and energy continues to be much higher than the physical demands of modern living. Household goods will also pick up on the trend, with CBD-based sleep aids an exciting new avenue for a whole host of product development.
Read more at https://prohibitionpartners.com/2019/12/20/the-cannabis-trends-that-shaped-2019/