2020 was a tumultuous and turbulent year for the global cannabis markets. The global pandemic changed perceptions for business and governments in all sectors and the evolution of what is “essential services” illuminated clearly the growing social upheaval of both the criminality and efficacy of cannabis products. 2020 brought progress to the global cannabis opportunity, but also setbacks, as early successful markets like Israel grappled with the challenges of international imports and international bodies reconsidered old perceptions.

Innovation and the greater “canna-business” model also came under new scrutiny as the early public companies in Canada and Internationally began to strengthen their position on intellectual property. Patents, legal challenges and a renewed push to differentiate became the focus of most of the larger global operators. The early green rush of public cannabis companies began to lose their luster (and share price) and a series of the founding CEOs and early leadership teams were replaced with an eye towards the true profitability of the sector, not the promise of one. Consolidation and entrancement from the early entrants have led to the expansion and distributed growth of smaller, craft and innovative business models in all markets. These new entrants are growing from within the structure of the early licences but are building craft models to compete in their local jurisdictions.

With innovation and IP providing the blueprint for growth of the largest and smallest companies in the sector, it will be the control, enforcement and traceability of that IP that will determine cannabis success in 2021. New technology like blockchain, molecular tracking, genetic phenotyping and machine learning will enter the market in new and exciting ways to both build the foundation for a profitable sector and push back the illicit market.

Overall cannabis in 2021 should prepare for a long and bumpy ride.