Cannabis Legalization & Deregulation: How They’ll Change The Market

Nikolay Stoyanov

January 4, 2022

Cannabis has the opportunity to become the most impactful consumer substance in the 21st century. If you just check the projections, it is clear that the industry will skyrocket in the following years.

The market value of $73.6 billion by 2027 is nothing to smear at, and it may impact industries such as tobacco and alcohol.

While the majority of that market is currently contributing to medical marijuana (71%), there are some indications that the progressive cannabis legalization and deregulation of recreational cannabis will change the whole landscape of the industry.

Making strides towards cannabis legalization

Every country has its goals for the legalization and deregulation of cannabis. The most obvious one is getting increased profits from taxes.

However, we shouldn’t neglect the fact that CBD offers unmatched opportunities for both pharmaceutical companies and consumers. Unfortunately, we still have limited data regarding potential medical benefits.

If we were to trust everything we’ve seen so far, people could use CBD products in the future to treat various medical conditions that were previously incurable.

Canada, for example, has very clear goals and strategies when it comes to the legalization of cannabis. According to their government, cannabis legalization will actually reduce the consumption of marijuana among young people.

Of course, Canadian citizens will benefit from medical cannabis. However, increased regulation will also allow the government to monitor the distribution of cannabis, simultaneously preventing criminal organizations from acquiring funds.

Australian officials have similar views when it comes to this plant. According to Australian Labour party lawmaker Michael Pettersson:

“It will work to reduce the harm of drugs in our community by reducing the stigma of drug use and encouraging people to seek help without fear of arrest.”

How will cannabis change the consumer goods market in the US?

Today, medical marijuana is legal in most US states, while recreational marijuana is still trying to carve out its place on the market.

However, if we were to trust trends in other countries, this is a good sign that the US government will slowly loosen its stance towards recreational cannabis.

Euromonitor International believes that both products will be wholly legalized on a federal level within the next 5 years.

Although cannabis will have a significant impact by itself, it may also disrupt specific consumer market segments. In particular, marijuana may have a major effect on tobacco, beverages, consumer health, packaged food, and beauty and care.

  • Beverages

CBD-infused drinks are becoming a major fab, which will likely impact the whole industry in the long run. First of all, cannabis-based products have a chance of completely overshadowing some traditional drinks. This means that farmers focusing on the beverage industry will lose their customers. There are also reasonable indications that cannabis-infused beverages will take a fraction of the alcoholic beverage market. Finally, we cannot neglect the potential impact CBD beverages may have on health and wellness. These drinks are already becoming massively popular among fitness and bodybuilding enthusiasts, so don’t be surprised if CBD-infused drinks replace some of the more traditional workout drinks.

  • Tobacco

Like with alcohol, there are some indications that cannabis will completely replace cigarettes and related products. The figures for the tobacco industry have been dropping for a while now. THC cannabis may completely replace tobacco in the following years, especially during social gatherings. If we also consider that you can vape cannabis, the transition will be much smoother. It is worth mentioning that tobacco manufacturers have a unique opportunity to change from tobacco-related products to cannabis items. Don’t be surprised if some of the biggest tobacco companies start buying shares in cannabis businesses. Some of the products are even similar, which will make the shift that much smoother.

  • Supplement market

A lot of pharmaceutical companies are focusing on the supplement market. These products are great because you can sell them even to completely healthy people. Because of that, it is expected that CBD products will make a lot of money from consumers who are regularly using supplements. In fact, many cannabis companies are already focusing on this segment of the population. According to Euromonitor International, the global market for vitamins and dietary supplements is predicted to be the largest cannabis-driven OTC market by 2025, with 2% of total value sales to be CBD or THC-based, followed by topical analgesics, sleeping aids, and sports nutrition.

  • Beauty products

Cannabis is an excellent antioxidant. The cosmetic companies have noticed this, so they started adding CBD to many of their recipes. Cannabidiol also has impressive anti-inflammatory properties making it ideal for acne. As we learn more about CBD, there is a good chance that the substance will find its place in more and more cosmetic products.

  • Packaged food

Hemp-based products are everyday things in organic food stores. Unfortunately, there are still a lot of laws that prohibit the use of cannabis within food items. However, as these regulations become looser, we will have much more marijuana in products such as sweets, pasta, baked goods, and so on.

Significant changes in marijuana legalization expected in 2020

There are lots of things to look for in 2020. According to several experts, there are numerous ways that the US cannabis market will change within this year alone:

  • Consumers are becoming savvier

Given that CBD is not precisely new, consumers are slowly starting to grasp the industry. A lot of users require better standards and oversight. For the most part, the cannabis industry in America is pretty chaotic. This mostly has to do with a lack of regulation. People have become very attentive by reading the labels, checking lab results, and performing other types of researcher before buying a product. There is also an increased demand for high-quality CBD products.

  • An Increased number of studies

Although everyone’s aware of CBD’s medical potential, we still don’t have enough studies to support some of the claims. For the industry to progress, we will need many more studies to confirm or deny previously imposed medical claims. In 2020, the overall number of cannabis studies had changed dramatically. According to Dr. William Levine, cannabis companies will, in the future, rely more on data and clinical trials.

  • Older consumers will try regular cannabis.

One of the things that are bound to happen is that some elderly will try recreational marijuana. As the oversight improves, this is likely to happen. Keep in mind that older generations are entirely open to marijuana. In fact, around 9% of people above 60 have used CBD products in the last year or so. The main reason more elderly are not using these products is that there isn’t a proper regulation behind them. However, this will change in the future as the whole market sees improvements.


If you’re in any way connected to the cannabis market, you should feel ecstatic. The industry hasn’t stopped in the last few years, and this trend is present in the States and the whole world.

The increased number of case studies will also help us determine how beneficial cannabis is.

We already see significant shifts in terms of regulation, and as the US government becomes more accustomed to the substance, we will see an improvement in every possible way.

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