2020 was a monumental year for the cannabis industry, and experts predict the momentum will continue well into the future. Specifically, when businesses across the globe were forced to close amidst the worldwide spread of Covid-19, cannabis dispensaries were deemed an essential business and permitted to continue operations at the onset of the coronavirus pandemic. Cannabis activists across the country counted this as a significant win in the progress of our nation’s collective perception of the substance. As this fast-paced industry constantly evolves, expect to see continued strides made throughout the industry in the following year. Below we’ve included what to expect from the cannabis industry in 2021.
Continued legalization of cannabis in states across the country
Following this year’s election, the use of recreational cannabis was legalized in four additional states, including Arizona, Montana, South Dakota, and New Jersey, for a total of 15 states where cannabis is now legal. The legalization of cannabis across the country is expected to continue well into 2021 as multiple states are working on similar legislation to pass. Specifically, the legalization of cannabis is already on the horizon for states like New York, Connecticut, and Maryland.
Efforts to decriminalize cannabis at the federal level
In addition to the continued legalization of cannabis in states across our nation, strides in the decriminalization of the substance at the federal level are expected to take place in 2021 as well. However, this does not mean the use of marijuana will become legal across the country in the next twelve months. As the House of Representatives voted to approve the Marijuana Opportunity Reinvestment and Expungement (MORE) Act in December of 2020, a promising future lies ahead for the eventual decriminalization of cannabis at the federal level. While this act still must pass through the Senate and is subject to multiple changes, legislation such as the MORE Act signifies ongoing progress regarding the substance, and continued progress in the federal decriminalization of cannabis is expected to continue in 2021.
Increased sales in the cannabis industry
While cannabis was already legal in multiple states before the onset of Covid-19, sales of cannabis products have remained strong throughout the global pandemic. As the legalization of cannabis is expected to continue in multiple states across the country, sales of the substance are predicted to continue increasing as well. Specifically, with a population of nearly 20 million people, New York would be the next-biggest market for recreational cannabis following California.
Additionally, as one of the fastest-growing industries, many investors believe that cannabis stocks have tremendous potential over the next several years. Marijuana businesses have withstood a myriad of obstacles and managed to raise hundreds of millions of dollars through equity deals in recent months. Despite the challenges of 2020, many cannabis businesses have continued to recover from previous industry crashes in 2019. This combination of factors proves intriguing for investors, which should contribute significantly to the prosperity of the cannabis industry in 2021.
As the cannabis industry continues to gain traction, it is more important than ever for your business to stay informed on the biggest trends in the market to remain successful in this space in the coming months and beyond.
Chelsie Spencer is an experienced cannabis lawyer and a founding member of Ritter Spencer PLLC, a law firm located in Dallas, Texas. With years of experience representing clients throughout all sectors of the cannabis industry, our experts are prepared to guide your cannabis business throughout the manufacturing, sale, and distribution of cannabis products and ensure business success in 2021. Contact Ritter Spencer or give us a call at 214.295.5070 for more information.