Business in the cannabis industry has skyrocketed within the past 5 years. The global cannabis market size is projected to increase from $28 billion in 2021 to $197 billion in 2028.
In addition, the number of cannabis consumers in the US is expected to grow by about 4% every year for the next 8 years, reaching an estimated 71 million consumers by 2030. When it comes to sales, the US is on pace to surpass $33 billion from 2022 to more than $52 billion by the end of 2026.
Based on these statistics, it’s safe to say that this field isn’t likely to go up in smoke anytime soon. And it’s no wonder so many entrepreneurs have set their sights on the cannabis industry. (It’s never too late to switch professions ;) ) However, when it comes to branding, things can get a little tricky due to the complex legal and social issues associated with the use of marijuana. Some key branding issues in cannabis include:
1. Limited marketing channels
Cannabis companies face severe restrictions on advertising and promotion due to legal and social issues. This can make it difficult for you to reach your target audience and build brand awareness. Many social platforms also prohibit cannabis-related content and advertising, which further limits your marketing channels.
2. Negative stigma
Despite growing acceptance of marijuana and recreational use, there’s still a negative stigma associated with it. This can make it difficult for you to build a positive brand image and attract new customers. Oftentimes this can also be due to lack of education on the benefits of cannabis as well.
3. Lack of standardization
In addition to negative stigma, the lack of standardization in the cannabis industry makes it difficult for consumers to know what they’re getting into. Because of this, this can lead to a lack of trust in your brand and the industry as a whole.
4. Regulatory issues
The legal status of cannabis varies from state to state and country to country. And although this is a growing industry, this can create challenges for cannabis companies that want to build a global brand. You must navigate complex regulatory frameworks and ensure that you comply with all relevant laws and regulations.
5. Product differentiation
With the increasing number of cannabis brands in the market, it’s becoming more and more difficult for companies to differentiate their products from their competitors. In general, branding is what connects you to your customers and without focused branding, this can lead to a lack of brand loyalty and makes it challenging for you to build up a sustainable business.
Overall, these branding problems in cannabis make it challenging for companies to build a strong brand image and establish themselves in the market. However, with the right strategy and approach, it’s possible to overcome these challenges and build a successful cannabis brand.
Hey there! It’s Kristina, your friend in branding! I have experience and specialize in branding specifically for the cannabis industry. You need a strong strategy, brand identity that connects your customers to your brand, and a website they can visit and purchase from you. Proper branding allows you to stand out, be able to put more time in your schedule to do the things you want to do and keeps your customers coming back for more.
Let’s chat today about how you can stand out and wow your audience.
