We have just entered the new year and the new decade – the brand new era where the perception of cannabis is set to change, and the cannabis industry will see legalization, destigmatization and growth.
What this year will bring us? We at Valuation420 have collected the predictions for 2020 from the most credible cannabis related media, experts and thought leaders to try and draw a map: what we should expect from the cannabis space, where and when.
Cannabis legalization in the U.S.
The founder of Tusk Ventures (investor in Eaze) Bradley Tusk in the guest column of Fortune’s Term Sheet predicts that several states including New York, New Jersey, Connecticut and Pennsylvania will pursue the legalization of recreational cannabis. The ballot initiatives around the nation will leave state legislatures in Arizona, Florida, Missouri, South Dakota and other states to debate and make progress in legalizing marijuana. However, it will likely take the Congress longer than 2020 to legalize cannabis on the national level.
This latter prediction is confirmed by the cannabis portal Leafly, the majority of whose predictions for 2019 came true: according to the portal, the leading federal cannabis legalization bill The MORE Act will pass the House of Representatives (the lower house of the US Congress), but get stalled in the Senate.
Who’s next to legalize?
Mexico is the next in line for cannabis: the talks about legalization on the federal level started a while ago, when the Supreme Court ruled in 2018 that absolute prohibition of recreational cannabis (medical cannabis is legalized in Mexico since 2017) violates constitutional rights of the citizens.
Throughout 2019, the country waited for the lawmakers to pass legislation on cannabis by November – the deadline first set by the Supreme Court. However, it did not happen: the big businesses that want to secure a place “under the sun” in the new cannabis industry, put a pressure on the lawmakers which caused them to miss the deadline. The Supreme Court agreed to push it back until April 30, 2020.
In Europe, Luxembourg and Switzerland have had cannabis legalization on their agenda for a while now, recently joined by Germany. Even though it is unlikely that we will see the final legislative decisions come into force in 2020, this year will undoubtedly bring more clarity on what Europe with legalized cannabis will look like.
New opportunities abound
According to the CEO and Co-Founder of Marijuana Business Daily Cassandra Farrington, the emerging industries within the cannabis markets will continue to thrive. Despite that there are talks that it’s too late to get into the cannabis business for entrepreneurs, this is not true. There is even more room for innovative startups to find their angle and the niche on the rapidly growing market.
We expect to see more tech innovation in the production of cannabis and the whole supply chain: being led by small farmers for decades, cannabis cultivation will now be getting more industrialized and mechanized, leading to higher efficiency.
Besides, in 2020 specific industries like insurance for cannabis space will also start to develop, which will lead to standardization of practices that currently have no common denominator. It will make the industry more safe and reliable for both consumers and the business counterparties.
Other cannabioids / exotic cannabinoids
Today, THC and CBD are the most well-known cannabinoids, whose impact is recognized and widely used for recreational and medicinal purposes.
There are talks in the industry that THC and CBD will no longer stay dominant on this market: it’s quite likely that exotic cannabinoids such as THCA and THCV will be studied and used more widely, including for in such products as asthma inhalers.
New delivery methods
According to CEO and co-founder of Medterra Jay Hartenbach, cited by Greentrepreneur,
“Tinctures, gel capsules, and gummies are a thing of the past. In 2020, we can expect to see a continued focus on innovation within the industry, from varying strain types like CBG and CBN, to the creation of new delivery methods that enhance the efficacy of CBD at an incredible rate. We’re also seeing the development of functional products and products that pair CBD with natural ingredients like turmeric and ginger, as well as broad-spectrum, all of which will evolve and improve the consumer experience.”
Want to learn more?
Read Forbes’ take on Marijuana’s Biggest Victories of 2019 to see how the industry has been doing by far – and join our weekly newsletter by clicking “Subscribe” on top of this page.
Valuation420 is wishing you a Happy New Year!
CEO at Stobox. Serial entrepreneur. Investor. 25+ years in IT Development and entrepreneurial experience. International background. Focus on technologies, stocks and crypto trading platforms, Web 3.0.