MJBizMag January 2023 - 27

D
espite setbacks and continuing federal obstinance, opportunities in the
U.S. cannabis industry continue to expand: Up to seven new markets could
launch this year.
When mature, the New York market will likely be the second-largest in the
United States. Delivery sales were expected to launch before Jan.1, even if some
regulations hadn't been finalized.
Other states coming online this year have potentially lucrative futures,
though in the near term, opportunities will be limited.
New opportunities can even be found in more mature markets such as
California, Colorado, Massachusetts and New Jersey, where local municipalities
that once opted out of state-regulated programs are now saying yes.
It's hard to trace commonalities in new markets as different as Connecticut
and Mississippi, but there are some possible trends and lessons:
* More states are working to level the playing field for small businesses.
* Limited-license markets continue to be tough for new entrants to crack.
* Investment and licensing agreements could be the best ways to enter
new markets with tough regulations.
" Everybody's still in development. We're still learning. But I think there are
some common threads, " said Tremaine Wright, chair of the New York State
Cannabis Control Board. " Across the board, we're seeing a focus on equity, and
we are each taking our own path. "
She added: " We're going to see a lot of innovative ideas that really support
the industry. We want to see a strong cannabis industry. We just each have to
do our own test case in this moment. "
- Omar Sacirbey
There will be thousands of opportunities for marijuana entrepreneurs
in 2023, thanks to new markets opening and older markets seeing more
communities opt-in to industry participation. But success will require
recognizing that states have differing options for entry, and the best
opportunities might not arise until 2024. Things to keep in mind include:
* In New York, conditional licenses are generally already spoken
for, but new licensing opportunities are not far off. Aspiring
entrepreneurs should already have boots on the ground exploring
communities and real estate.
*
Connecticut and Rhode Island can be lucrative markets for existing
license holders, but new licenses will be limited in the near term,
meaning the best way to enter these markets might be though
investing.
*
Many observers are bullish about Missouri's soon-to-launch
recreational market, but the best way to break into the state's
industry is either through microbusiness licenses or partnering with
a local company to build your brand.
*
Medical marijuana is rising in the South, as Alabama and Mississippi
embrace taxed and regulated cannabis markets. Alabama will have
limited license opportunities, while Mississippi has a much more
business-friendly regulatory framework.
*
Many observers also envision a lucrative recreational marijuana
market in Maryland-but the state will need some luck to launch
this year. Lawmakers are likely to move carefully in drafting
regulations as they strive not to repeat mistakes made during the
medical marijuana launch, when the state's minority applicants
were almost completely shut out.
*
Entrepreneurs should also keep their eyes on existing markets
such as California, where some local communities are opting into
regulated marijuana.
mjbizdaily.com | January 2023 27
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MJBizMag January 2023

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