What Can We Expect From the Cannabis Industry in 2022?

Cannabis Cultivator holding up a cannabis plant and oil derived fro the plant to the camera

As we delve into our third year of the COVID-19 pandemic, we know that the year 2022 will continue to bring challenges. As the collective population struggles with their physical, mental, and financial health, they will continue to seek answers to help with the ongoing effects of the pandemic and life’s challenges in general.

Cannabis, it seems, offers potential remedies for many aspects of our well-being, and with a projected industry growth rate of 38% in 2022, it deserves our attention.

Cannabis Research:

Cannabis Sativa in the form of hemp and cannabis date back to practically the beginning of time. Though human beings started taking advantage of cannabis for therapeutic, recreational, and industrial purposes centuries ago, only later did the research take place that pinpointed why the herb works so well for so many.

In the late 1980s, commissioned research that was intended to reveal the dangers of cannabis resulted in the discovery of the endocannabinoid system or ECS. The ECS runs throughout the bodies of all mammals. The system consists of a series of endogenous acidic molecules, also known as endocannabinoids. These endocannabinoids exist in all the organs, systems, bones, muscles, and tissues throughout the body. 

Homeostasis, or balance, accounts for the primary function of the ECS. When the ECS becomes compromised through poor lifestyle choices or disease, cannabis assists in repairing it since cannabis possesses a system that mirrors that of the ECS.  Cannabis working with the ECS potentially helps with a variety of conditions and also helps all the body’s systems work well together.

Since the initial studies and discovery of the ECS, the research remained spotty for decades. As of 2020, however, over 3,500 peer-reviewed articles on cannabis have appeared across various publications. The year 2022 promises to keep the trend of increased research going due to progressive legislation and public demand. 

Recently, researchers from the University of Chicago discovered that cannabidiol or CBD, a cannabinoid found in hemp, may inhibit COVID-19 infections. Initial clinical trials indicate that CBD (when used alone and not mixed with THC), may slow the progression of the virus’s ability to spread due to its anti-inflammatory properties.

Upcoming research will also focus on explaining the complexities of cannabis to the consumer. With multiple strains of cannabis and over 500 cannabinoids, the public needs clarification around this multifaceted plant.

Cannabis and the Economy:

The cannabis industry continues to represent an economic boom, exhibiting promising opportunities to investors. These financial trends should continue to improve in 2022. Public acceptance of cannabis partially drives financial success. Estimates tell us that 68% of Americans favor the legalization of recreational marijuana at the federal level.

Investors may choose from three different categories when deciding how to allocate funds related to cannabis:

  1. Dispensaries and growers
  2. Services and goods
  3. Biotech and pharmaceutical
Stock price chart next to coins

Investors should consider state laws when choosing companies for investments, and federal legislation prohibits crossing state lines for some financial activities. Additionally, even though more and more states continue to legalize recreational marijuana, the companies with the best financial track record started in or remain heavily involved in medical marijuana or medicinal hemp products.

All in all, 2022 should represent a good year financially for cannabis as investments will continue to increase as the acceptance and popularity of cannabis usage increase.

Cannabis and Legislation:

Currently, a combination of 18 states, the District of Columbia, and U.S. territories carry legislation on the books showing recreational cannabis as legal. In 2022, several other states will most likely follow. The states that will legalize recreational marijuana to some degree includes Delaware, Oklahoma, Maryland, Ohio, Pennsylvania, and Rhode Island.

At the federal level, the Biden administration won’t present a hindrance when it comes to legalizing marijuana, and the House most certainly remains on board. However, it remains difficult to conjure up bipartisan support in the senate.

The Secure and Fair Enforcement Banking Act represents one piece of legislation that may see bipartisan support in the future. This legislation would protect financial institutions from receiving penalties because they did business with a cannabis company. 

Other than the support of cannabis users, legalizing marijuana at the federal level would also allow cannabis businesses to deduct related expenses, something they can’t do now under Section 28 of the IRS Code.

Federal legislation in favor of legalization would also help to unburden the prison. Although 2022 won’t likely see significant recreational legalization laws passed, medical marijuana laws will most likely become more lenient.  

Cannabis Summary for 2022: 

To summarize, the cannabis industry has enjoyed tremendous growth over the last few years; all indications point to 2022 as another recording-breaking year for the following reasons:

  1. The projection for industry sales in the year 2022 comes in at over $30 billion
  2. Multiple source operations, or MSO, are expected to perform well, especially those that started their business in medical marijuana will do exceptionally well
  3. Public support for legalizing recreational marijuana continues to grow. Currently, public support sits at 68%
  4. Six more states are expected to legalize recreational marijuana to some degree. Those states include Delaware, Oklahoma, Maryland, Ohio, Pennsylvania, and Rhode Island
  5. Peer-reviewed articles and research regarding cannabis will continue to grow as the public continues seeking additional information and clarification

The Best OC Dispensary

Looking for high quality cannabis near you? Planet 13, the best Orange County dispensary, offers a wide variety of top of the line cannabis products. Our Santa Ana dispensary not only offers high end products, but an experience for all users! 

We offer dispensary pick up, dispensary delivery and in-store shopping. Have questions? Feel free to contact us for more details!