CBD marketing

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

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 have an impact on industries such as tobacco and alcohol.

While the majority of that market is currently contributed 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 when it comes to 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. We still have limited data regarding potential medical benefits.

If we were to trust everything we’ve seen so far, CBD products would be used 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. 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. 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 completely legalized on a federal level within the next 5 years.

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

  • Beverages

CBD-infused drinks are becoming a major fab, which will likely have a major impact on 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 who are focusing on the beverage industry will lose their customers. There are also good indications that cannabis-infused drinks will take a fraction of the alcoholic beverage market. Of course, we cannot neglect the potential impact that 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, it will make the transition that 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 they can be sold even to people who are completely healthy. Because of that, it is expected that CBD products will make a lot of money from consumers who are regularly using supplements. In fact, a lot of 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 a great antioxidant. The cosmetic companies have noticed this, so they started adding CBD to a lot of their recipes. Cannabidiol also has great 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 common things in organic food stores. 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 items such as sweets, pasta, baked goods, and so on.

Major 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:

  • The consumers are becoming savvier

Given that CBD is not exactly new, consumers are slowly starting to get a grasp of 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. In order for the industry to progress, we will need many more studies that would confirm or deny previously imposed medical claims. In 2020, the overall number of cannabis studies has 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 of the elderly will try recreational marijuana. As the oversight improves, this is likely to happen. Keep in mind that older generations are completely open to marijuana. In fact, around 9% of people above 60 have used CBD products in the last year or so. The main reason why 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 not only in the States but in the whole world.

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

We are already seeing major 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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