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Cannabis Market Playbook 2022: By Frank Holland

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In a recent interview, CNBC general reporter Frank Holland outlined rules of the game for the cannabis industry in 2022 aka the cannabis market playbook. Of special note is that the market is gunning for a value of $31 billion dollars by the end of the year which represents a 28% growth in sales.

According to Stifel, the Safe Banking Act is likely to be passed in 2022. This will allow mainstream banks to do business with legal cannabis businesses thereby improving access to financing and other banking services.

Cannabis Beverages is a Trend to Watch in 2022

The cannabis beverage market is likely to burst at the seams in 2022. As the cannabis product segment continues to diversify, we are likely to see new entrants into the beverage sector. So far, the beverage segment makes up about 1% of the U.S market and less than 2% of the Canadian market. That said, the profit margins in the beverage segment are apparently quite enticing. While the production cost of one unit is around $1, the same unit can retail for about $4 to $5. Constellation Brands and Heineken have already formed partnerships with Canadian cannabis companies.

How Supply Chain will Impact the Cannabis Market

U.S cannabis prices in 2022 may fall by about 15% year on year. In Canada, prices may fall by about 17% year on year. Cannabis companies will have to compete against the illegal market which has a mature supply and delivery chain as well as a broad and varied product range.

The New York City market is one to watch out for. The potential value of the market has been given an estimated value of $4 billion dollars; this is bound to cause ripples in the market.

Hopes for Legalization in International Key Markets?

The cannabis market in Germany is promising and may open up in 2022. While medicinal cannabis is legal in Germany, recreational cannabis is not. However, the country is having talks to legalize recreational talks which may yield fruit this year. Since Germany is the biggest economy in Europe, this will make a big impact on the international cannabis market.

A lot of growth has also been seen in the Israeli market. However, the U.S remains the holy grail of cannabis. There is a lot of potential at both the state and the federal level with significant spending of consumer dollars on both cannabis products and the whole cannabis experience.

 

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Lydia K. (Bsc. RN) is a cannabis writer, which, considering where you’re reading this, makes perfect sense. Currently, she is a regular writer for Mace Media. In the past, she has written for MyBud, RX Leaf & Dine Magazine (Canada), CBDShopy (UK) and Cannavalate & Pharmadiol (Australia). She is best known for writing epic news articles and medical pieces. Occasionally, she deviates from news and science and creates humorous articles. And boy doesn't she love that! She equally enjoys ice cream, as should all right-thinking people.

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