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 systems necessary 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 loss driver 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, dial us at (323) 250-3726.
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