Over the years, the cannabis industry has grown tremendously, attracting more investors in this dynamic and competitive space. With the medical use of cannabis legalization in 38 states, more companies are producing cannabis products that can act as alternatives to traditional medicine.
Why Did Cannabis Products Become Popular?
Unlike in previous years, modern consumers are actively looking for cost-efficient alternatives. After the 2018 Farm Bill Law was enacted, individuals with various health conditions began considering cannabis products as treatment alternatives, as they wanted more options that could enhance their lives quality without draining their finances.
Delta 9 THC, one of the most abundant cannabinoids in cannabis plants, has gained popularity in recent years due to its effectiveness compared to other cannabis products. Some possible benefits of using delta 9 thc include enhanced sensory perception, relaxation, and increased appetite. Several studies also demonstrated that this cannabinoid could significantly reduce vomiting and nausea episodes in chemotherapy patients.
Due to its increasing popularity, many more companies have been manufacturing them in various forms, such as infused beverages, cookies, lotions, gummies, and candies.
Are Cannabis Products a Threat to the Pharmaceutical Industry?
According to a report by Grand View Research, the global cannabis pharmaceutical market size is forecast to increase at a compound annual growth rate of 62.5% from 2023 to 2030. The use of cannabis in multiple medical applications has been the driving factor in the industry’s growth.
The report also stated that the number of physicians prescribing cannabis products and consumer acceptance has increased. Stakeholders in this rapidly growing industry have made significant investments, poised to drive market growth even further. There was also an increase in the number of research institutes conducting multiple research studies.
With cannabis products being widely accepted, several pharmaceutical startups and major industry players, such as AbbVie, have been exploring opportunities in cannabis medicine. Instead of viewing cannabis as a threat, pharmaceutical companies should actively find ways to incorporate these products into their brand.
What Are the Biggest Challenges Facing the Industry?
Despite the growing number of states legalizing the use of cannabis products for medical use, the industry’s legal landscape is still highly complex. Without a global regulatory approach, consumers are at risk of purchasing cannabis products that can cause addiction and health complications. It is, therefore, important that concerned regulatory bodies formulate efficient directives that can foster responsible production and consumer use.
Additionally, with the interest rate surge, cannabis-focused startups might find it more challenging to acquire capital to fund their businesses’ financial growth. Even if consumers are more open to trying new and unconventional products, consumer demand may decrease for fear of recession and inflation pressures.
What Should We Expect From the Cannabis Industry?
The global cannabis pharmaceutical market is well-positioned to gain higher revenue, provided that consumer demand continues to grow and proper regulations are strictly implemented. For this dynamic industry to thrive, pharmaceutical companies must be aggressive yet strategic in securing investors that can bank on them despite the country’s volatile market.