2022 Cannabis Legislation: What to Expect
As we ease into 2022, cannabis legislation is slated to move forward in several US states and may even see some movement at the federal level as well. There are a few important opportunities that may say considerable advancement in the calendar year.
Cannabis Federal Prohibition Remains Unchanged
There was no real progress at the federal level in 2021, but sales across the country soared. Total cannabis sales are expected to exceed $24 billion in in 2021, which would mark a 38% increase year-over-year. That commercial success, as well as societal acceptance, means the market can expect continued growth in 2022 and beyond. According to some estimates, including one by BDSA, legal sales should reach $47.6 billion by 2026. At that mark, it will eclipse the revenue of craft beer.
Social Acceptance Grows
In Q4 of 2021, a Gallup poll found that 2 in 3 Americans would support the federal legalization of cannabis. A similar number, 60%, reported the same opinion in April of 2021, a tough indication that popular support is growing.
Cannabis Mergers and Acquisitions
Growth by mergers and acquisitions has already served as a characteristic of the industry and more of the same is expected in 2022. More than 300 such deals took place in 2021. These aren’t small M&A transactions between cannabis-centric firms. 85% of M&A transactions in 2021 included publicly traded companies as the buyer.Larger operations, most with interstate operations, have the financial assets to pursue growth in this way, while few private companies can compete without funding. As a result, 2022 cannabis legislation may include changes in interstate commerce to better reflect the realities of cannabis company ownership and the growing market.
States Continue to Legalize Marijuana – And Decriminalize It
There were at least 50 cannabis reform laws passed in 27 states in 2021. 5 states voted for outright legalization. In 2022, roughly half of the adults population of the United States live where cannabis is legal.Still, even in these states, cannabis may not be completely settled law. Laws linked with federal commerce and medical use are expected to see the courtroom. Some of these are focused on decriminalization, but that issue plays a crucial role in legalization by impacted the perception of use.
SAFE Banking Act and Reform Bills
Nationally, the House of Representatives has put together a number of bills that include elements of the SAFE Banking Act, which would open up financial resources and make the cannabis industry more equitable. That made it through the House in 2021 twice, but never saw a vote.
Cannabis’ Environmental Challenges
Cannabis also has a sustainability problem. The energy-intensive industry will need to make amends with its outsized carbon footprint. Investing in energy efficiency practices will also play a role in deciding which firms will stay competitive in a market with shrinking margins and more competition.
Learn What’s Next for Cannabis with Keen Technical Solutions
At Keen, we’re invested in a future that offers high-quality cannabis products with a low-carbon footprint. Our decades of experience optimizing energy solutions for customers in many industries and our own cannabis facility make us an ideal partner to help grow your business. Contact us today and let’s get started.