For the cannabis industry, the last few
years have been quite flourishing, especially in terms of legalization. But,
various other challenges embraced the industry, starting with the unwelcomed
and striking effects of COVID-19. Since then, hurdles are not unknown to this
industry. With the beginning of the new year, the industry might find some
solace from past challenges. But new unforeseen risks can also come knocking at
the door suddenly.
Cannabis companies are battling an enormous
challenge to be sustainable in today's market, with an unfriendly regulatory
regime, workforce shortages, disruptions in supply chains, and the ever-present
fear of vandalism and quality problems.Moreover, it also depends on how you
look at it. The year 2022 has been challenging for the cannabis industry, and
it seems this year, 2023, will be starting with the same difficulties.
It will not be an easy trip for the
industry. Although with forecasts of record expansion in recent years, it must
address a number of concerns that might jeopardize the industry. Even if you
hire a cannabis marketing agency for assistance in marketing your
cannabis business. It is a sure thing that they would advise you to analyze
each step amidst the challenges.
Recent updates on the cannabis industry
According to data forecasts such as those
from New Frontier Data, cannabis and marijuana profits will max out at around
$32 billion this year. Nevertheless, during the initial part of 2022, 24 of the
top enterprises in this industry recorded liabilities above $550 million.
Despite the fact that these enterprises generated over $4.5 billion in revenue,
the losses are fairly startling.
For several cannabis firms, particularly in
2022, the hurdles have taken a significant toll on sales for a variety of reasons.
These include general constraining inflation prices, supply chain challenges,
excessive taxes, and many technicalities involving interstate trade due to
state-by-state variations in marijuana and cannabis regulations.
An ever-evolving risky topography
As the sector expands, it must conform to a
rapidly evolving legal context. The issue for cannabis enterprises is that
various U.S. states and foreign nations have varied regulations governing the
legality, consumption, distribution, and cultivation of cannabis.
As the legalized marijuana market matures,
more prominent organizations from outside the sector are growing their
presence. The "addiction" industries—tobacco, alcohol, and
pharmaceuticals—have significantly invested in the cannabis sector.
They have already been purchasing various
firms to sell cannabis on a large scale like they do their other
products.During this time, new cannabis-infused product lines have emerged,
including cannabis drinks advertised as a replacement for alcohol.These trends have
the potential to alter the cannabis market drastically.
When you seek marketing assistance from a cannabis
marketing agency, this point is likely to be the first risk they will make
you aware of.
Risk strategies should be prioritized
The identical elements and systemsnecessary
to develop plants, such as high-energy chemical exposures, discharge
lighting, and butane in oil extractions, pose risks to cannabis
operations. Underwriters examine the machinery used in manufacturing and fire
prevention systems as a prerequisite of property insurance.
Outbuildings for marijuana farmers in
wildfire and hurricane sites are often not covered by property
policies. More carriers are restricting or excluding coverage for damages from
large-scale natural disasters. Even coverage for agricultural losses caused by
natural disasters is limited and sometimes prohibitively expensive.
Cannabis businesses are strengthening their
risk management plans.Furthermore, they are examining policies to ensure they
are conscious of any shortfalls in coverage and preparing to fill them.
This entails the addition of cyber insurance since cyber continues to be a critical
lossdriver in the sector.
Analyzing these risks, if you are
interested in moving forward with your cannabis business, a cannabis
marketing agency can be of great help. TopIT Cannabis is a cannabis
marketing company that has been helping clients with unique marketing
strategies. Moreover, our skilled team dedicatedly customizes marketing
strategies as per your cannabis business requisitions. For more details on our
services, visit our website (https://www.topitcannabis.com/)
or dial us at (323) 250-3726.