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Cannabis in 2020? We're making some bold predictions.
December 19, 2018

Cannabis In 2019: Consolidation, Compliance, Ancillary Investment, East Coast and More

Trends can be tricky, but we’re bold and thirsty for that end of year #content. In any case, here are some reasonable predictions and trends we’re anticipating for cannabis in 2019. Not ready for 2019? Check out our 2018 In Review.

The Shift Eastward Continues for Cannabis In 2019

States such as California, Colorado, Arizona and Washington will all remain major players in cannabis, but you don’t have to read too much into the tea leaves to see that the eastern US is a major emerging market. Andrew Cuomo’s calling for New York to get into rec-use, New Jersey is looking to legalize, Massachusetts‘ legal market is expected to grow, Michigan will enter the field, etc.

In addition, companies such as Florida-based Surterra will continue to expand their markets. As we’ve discussed in the past, we really like Surterra’s strategy of targeting baby boomers in lieu of the Millennial-chasing so many canna-companies are doing.

New York-based Constellation, what with their massive investment in Canada’s Canopy Growth is another company that could make big moves in the US with NY so focused on rec-use legalization in 2019.

Compliance Factors Big For Cannabis In 2019

As a consultancy that focuses on compliance, licensing, and investment, maybe we’re a little biased. But we’re serious when we say that compliance issues will be a major factor in 2019. The plant-touching industry is arguably the most scrutinized industry in the US and that should remain for the foreseeable future as more states legalize. State and municipal-level codes and regulations differ everywhere and it’s an impossible task for businesses to navigate these on their own. Shameless plug: We’re available for hire! info@mmlg.com

Investors Start Looking At Ancillary Cannabis Companies In 2019

Every investor has a hot tip for the biggest “disruptors” in cultivation. We don’t expect that to necessarily slow down, but we do anticipate investors will start taking a look at ancillary businesses within the plant-touching biz. For example: California could still use more testing facilities and companies, cannabis security companies are something that’s definitely in demand. 2019 is when smart investors start looking to fill in the white spaces is what we’re trying to say.

Financial Strain Will Lead To Consolidations

The dirty secret of the cannabis industry is that it is not cheap and that financing is really tricky. With federally-insured banking still a pipe dream, and with economic headwinds forming, we are concerned that many small businesses (and even some seemingly stable larger businesses) will be gobbled up by wealthier competitors due to a lack of liquidity. Keep your heads up, folks.