To say that COVID-19 dominated the previous year would be an understanding. We have seen the epidemic again in how we interact with businesses, each other, and the world around us. From e-commerce to digital payments – there has been a spurt in many trends in businesses running for several months.
The cannabis industry is no exception. Cannabis was already the country’s fastest growing industry, but 2020 has taken the space to another level. A record-high percentage of Americans now support cannabis legalization.
According to all accounts, cannabis was one of the biggest winners on Election Day, with legislation passed in Arizona, Montana, Missouri, New Jersey and South Dakota. More than a third of the country – more than 111 million people – now live in a state with legal recreational cannabis. By 2021, the legal industry is expected to be worth $ 24.5 billion.
A record-high percentage of Americans now support cannabis legalization.
It has never been more clear that cannabis is now a staple in the US mainstream. As we look toward 2021, this upward trajectory not only opens new doors for industry, but the economy as a whole, flows into space with greater innovation, investment and employment opportunities.
A green economy
More than 57 million Americans have applied for unemployment since March. While financial and employment opportunities around cannabis are not a silver bullet, they are certainly not something we should ignore.
Legal cannabis sales reached nearly $ 20 billion last year this year and are expected to sell for $ 40 billion annually within the next four years. As the industry continues to grow, companies are hiring to keep pace. The legal hemp market supports 243,700 full-time American jobs, scheduled to multiply by 250% between 2018 and 2028. This makes the cannabis industry America’s largest source of new jobs.
Cannabis can also strengthen state economies and create opportunities to increase tax revenue, especially by decreasing state and local budgets. For example, with its new legalization measure, Arizona will issue a 16% tax on cannabis sales that will go towards community colleges, police, fire departments and public health programs.
Rapid cannabis e-commerce
If one point has been curbed this year, it is that cannabis is a highly demanding and unavoidable consumer.
At the height of widespread asylum-place orders this spring, dispensaries were classified as “essential” in many states, along with grocery stores, gas stations and pharmacies. Although people could not shop at department stores or go to the movies, they could still buy from their local dispensary. This government recognition was a major signal to the market that the space has been elevated into the mainstream.
Record cannabis sales were accompanied by a resounding response from consumers. The unprecedented demand forced cannabis retailers to revolutionize the ways in which they do business and how customers buy products. To minimize direct person-to-person contact that could potentially spread the virus, dispensaries quickly turned to e-commerce and digital payment solutions to keep employees and consumers safe while modernizing their businesses. .
As a result of these changes across industries, online sales will reach $ 794.5 billion by the end of the year, surpassing original estimates. Experts estimate that the epidemic accelerated the change in e-commerce by five years. In Dutchie, we have seen this for the first time. Since March, we have experienced a 700% increase in online orders and a 32% increase in average order size.
Looking ahead to 2021
These political and business changes were milestones that we have accelerated to a breakneck pace. So, what comes next?
I see technological innovation at the forefront of the legal field. The technology will enable dispensaries to organize operations in a highly regulated location where compliance is necessary. In turn, data will become increasingly more important as retailers will need to better understand their data to make more active, informed decisions. It will be a focus for dispensaries of all sizes, but especially in large businesses who are increasingly seeking a high level of sophistication for their online experiences.
To meet this need, we are finally seeing new enterprise-level solutions on the market that empower dispensaries to fully leverage their data to create their own unique online identities so they can stay competitive as more Players join space.
As legalization continues to spread, widespread adoption will give the industry more legitimacy and boost cannabis sales and use. We will likely see cannabis companies attracting more top talent from some of the most notable companies in mainstream industries, and more software platforms, businesses and investors who were previously hesitant to enter the space and invest in cannabis-related businesses Used to do Federal legalization of cannabis also has the potential to increase liquidity and open flood gates for more investment deals.
Additionally, as we have already begun to see, there will be an increasing trend towards consolidation across the entire space as retailers continue to make large acquisitions and mergers. More multistate operators will consume smaller players and smaller players will combine forces, creating a space that is more harmonious and less fragmented.
The cannabis industry is still in its infancy, but its potential is crystal clear.
As more states legalize and the industry grows and matures, we will also see Sui in the place we want to be: where legal cannabis carries the same technical and financial resources as other technology industries; Innovators can come together more independently to develop modern technology solutions to advance the space; And where consumers and patients can find what they want more easily.