What are some of the top 2019 challenges in the marijuana industry you ask? No one should be in denial when it comes to agreeing that 2018 was definitely a great year for legalized marijuana and the industry. In 2018, the legality of marijuana made new waves in so many ways and it is going in the right direction as it continues to grow. Canada, Uruguay and the United States made huge improvements in the marijuana industry and the future looks so promising. The Food and Drug Administration made some big moves by approving their first marijuana-based prescribed treatment. In the same token, many companies experienced high stock growth.
Every day, it appears that the dynamic of the marijuana industry keeps changing as new companies launch and mergers and acquisitions take place. In addition, older companies show signs of prominence and distinction.
Marijuana investors continue to watch to see what 2019 is going to offer and so far, they have not been disappointed. However, the year 2019 has seen a few initial challenges, which might eventually exert some pressure on the marijuana industry, but not in a major way.
You will find some of the barriers and challenges that we have listed below for the marijuana industry in 2018. Top 2019 Challenges In Marijuana Industry.
Many believe that the marijuana industry in Canada is going to go through a few tests and challenges. The fact that Canada has legalized both recreational and medical marijuana, it has created a shift in a legal sense. For that reason, it has not given investors enough time to fall into line. Additionally, no one yet knows how this new change will make an impact on the cannabis crop that is being cultivated by many Canadian companies.
In any event, expectations seem to be still high that everything will work out in favor of investors and companies that have made the move to expand their operations.
It is believed that once marijuana distributors and producers see the financial shift and receive a correct assessment of the broad legalization, valuations of the companies involved will see a shift.
If there are major corrections that have to be made with the financials, then investors are going to be hurt. Some companies in the marijuana industry might have to change their methods and strategies as they test the industry, the market, performance and their products.
The marijuana industry and its landscape is always changing. For example, Canopy Growth Corporation in Canada got the intellectual property for a research company in the state of Colorado. Many think that there will be more mergers and acquisitions like this for 2019.
However, investors and consumers should continue to expect a steady stream of news as it relates to company's expansion plans and buyout deals. For that reason, challenges might be experienced with acquiring intellectual property. It is possible that established companies that are not part of the marijuana industry will start to take notice and want to get involved in major ways.
For example, Constellation Brands, Inc, which is known to be an established beer manufacturing company, poured investment funds into Canopy Growth in excess of four billion dollars. Many more unrelated companies are looking to claim and carve out a piece of the marijuana industry for themselves.
The Market in the United States
The cannabis market in the United States already has its issues with the federal government and with other things and so, it is possible that there will be a continuation of these challenges in 2019, but the good thing is that there is hope for everything to be ironed out over time.
If the Feds could just jump onboard, many of these challenges and issues would be solved. If companies in Canada and other countries want to embrace mergers and acquisitions or invest their billions into the U.S. market, the federal government and its stance against marijuana legalization makes it almost impossible.
A major challenge for the marijuana industry in 2019 is the fact that the banks are not offering the financial services that marijuana dispensaries and other entrepreneurs need to advance their businesses.
Another thing that would make it easier for everyone is for the U.S. to do what Uruguay and Canada did by fully legalizing marijuana in their country. Maybe, the best is yet to come. Everyone is optimistic and have much hope. Let's wait and see!
Those are some of the Top 2019 Challenges In Marijuana Industry. Stay tuned for the top challenges in the marijuana industry for 2020.