The 5 Trends That Will Disrupt The Cannabis Industry in The Next 5 Years

five trends cannabis industry

In this episode Matthew Kind the last forecasts he made in 2014 about the cannabis industry and then lays out disruptive changes that will impact the cannabis industry in the next five years. Considering how many Matthew got right the first time around, you don’t want to miss this episode.

Get The 5 Cannabis Trends PDF, CLICK HERE


Key Takeaways:
[2:10][7:45] Review of Previous Forecasts from 2014
[8:57] –   The First Trend Blockchain will Disrupt the Seed to Sale Tracking
[12:58] – The Second Trend, Boomer Cannabis Adoption of MIPs Soars
[14:16] – Third Trend, Dynamic Terpene Profiling,
[15:21] – The Fourth Trend – Intravenous Cannabis Oil Medications
[17:24] – The Fifth Trend – Autonomous Cannabis Deliveries

Read Full Transcript

Hi CannaInsiders. This is Matthew Kind. I’m going to try something just a little bit different today in that we are not going to have a guest, but instead I’m going to walk you through the five trends that will disrupt the cannabis industry in the next five years. So this was a paper I wrote a few years back. I think 2014, and it’s actually available still at www(dot)cannainsider(dot)com/trends, but I want to go through these, talk about them a little bit and then lay out what I think are five trends that will impact over the next five years. So let’s just get right to it.

So the first trend I outlined, and I think again this was in 2014 roughly, was a market focused on CBD was trend number one. Now CBD is everywhere all of a sudden so this one seems a little bit obvious, but at the time I wrote this it did not seem that clear that CBD would have such an impact. I think that this is a profound development that we have the compound of the cannabis plant that has a lot of benefits to it, but I think there’s other cannabinoids that will come to light that will have a lot of impact on our health and give us a lot of natural solutions that we didn’t have otherwise.

So I’m really excited about CBD. I’m glad this trend emerged and has somewhat overtaken the market, but again there’s over 480 natural chemical compounds known to the cannabis sativa plant. So only 66 has been classified as cannabinoid. So we have a lot of discovery left to do, but I am really encouraged by what I’m seeing with CBD. So actually if you go to www(dot)cannainsider(dot)com/reviews, I have a whole long expose on what is CBD that can give you a very clear examples and illustration and why it’s important and ways to think about it that you may not have been exposed to in the past.

Number two is robot assisted growing facilities. That was trend number two. Again roughly 2014 when I first started talking about this. So what’s emerged since then? If you listen to the last episode, we had Yoni Ofir on the show and he was talking about how essentially he has created a robot assisted microgrow facility called Leaf, which is a remarkable development. That’s more on a consumer scale. On the commercial grow it still really hasn’t emerge to a level I thought it would, but there’s still two more years left in that time horizon, and I think it will emerge.

We see companies like Grownetics and Smart Bee that are kind of analytics and automation, and I think the next level is going to be harvesting equipment and robots perhaps that can go up and down on a track and monitor plants, trim them, identify pests and so forth. I think that’s very very close. I’m going to keep that in the has not happened fully yet but still likely to emerge. And on the consumer level with Leaf I would say it’s there. So let’s move on to trend number three.

Marijuana infused products will become a big market focus. So again this is one of those things that falls into the category of yeah this is really obvious, but when I wrote this it wasn’t so obvious that this was… it was still all about flower. Flower was the thing and MIPS were gaining a popularity, but they hadn’t quite gotten there yet. I think with the Baby Boomers there’s a stigma associated with anything lighting or fire and smoke in cannabis that goes back to the Reefer Madness.

So for the Boomers this is very important, the MIPS and why a lot of Boomers gravitate to MIPS. Don’t want to generalize too much. There’s a lot of Boomers that don’t fit in that category, but I would say look for this to increase even more interesting and creative ways that cannabis is going to be infused into different products.

So on to trend number four CannaMedicine. Hybrid Cannabis Medications. I’m going to put this one in the hasn’t quite happened yet category too, but still a couple more years here. That could happen, and likely to happen. So we have cannabis medications and we have medications but we haven’t seen the two really fuse yet. One of the interesting things I see now is kind of these transdermal patches and sprays with different cannabis compounds in it. That’s really interesting because a transdermal patch is considered more of a traditional medicine, but you see it now for aches and pains and autoimmune problems and arthritis and so forth.

That’s kind of taking cannabis to more of a traditional market fit there. So that’s pretty interesting. I still think this one is going to come to fruition. What I was thinking here specificially when I wrote this trend was that perhaps there would be a cancer medication that helps with nausea that could be infused with an edible or something like that. That’s what I still haven’t seen. It might be out there. If someone has seen something like that, let me know, but that’s what I meant by more of a traditional medicine like an anti-nausea medication being infused into an edible that’s also infused with cannabis to maybe help stimulate hunger or something like that for a cancer patient while decreasing nausea. So if you see something like that, just go to the contact page of CannaInsider and let me know if you see a hybrid cannabis and traditional medication being infused together or combined in some way that’s interesting and compelling.

Wow trend number five, again, this falls in the category of this is obvious but trend number five was tipping point in cannabis acceptance, and man did that ever happen in November with these ballot initiatives. So what I wrote back in 2014 is that many cannabis enthusiasts think the tipping point in public opinion to support cannabis has already arrived. In fact just the first wave, the bow wave arrived. The visionaries and early adopters have moved in and are building the foundation for the second wave.

The early adopters are the foothold that will help the second wave adopters to see the light and enjoy the benefits of cannabis. So we definitely had that first wave of foundation builders. Now the second wave is just starting. So a lot of opportunity still exists for the entrepreneurs that are listening for sure. It’s still worth getting into this industry because there’s tons of Greenfield opportunities everywhere and there’s still a lot of states that haven’t legalized too. So don’t think it’s maturing too rapidly or anything like that. It’s still the good ole’ days.

Okay now let’s move into my five forecasts for trends that will disrupt the cannabis industry in the next five years. So starting here in 2017 and going out to 2021. My first one is that the Blockchain, the technology that has popularized BitCoin will disrupt the seed to sale tracking market for cannabis. So if you’re not familiar with what BitCoin is it’s an open ledger decentralized crypto-currency. It’s really amazing. If you’re not familiar with it, I would just suggest Googleing “What is BitCoin” because it’s a little bit outside the scope of explaining what it is on this podcast, but it’s essentially an open ledger crypto-currency that’s decentralized that requires consensus among decentralized computers to verify that a transaction has occurred.

One BitCoin, as I speak now, is roughly in the thousand dollar range, and just a few short years ago there was for a few dollars you could buy a BitCoin. It was amazing. You couldn’t do anything with BitCoin when it first came out, but now you can. Now you can send payments. You can do a bunch of different things. You can pay for things with it. It’s really quite interesting. So the Blockchain technology that BitCoin is based on is that decentralized open ledger, and this is very compelling because states want to see how cannabis and cannabis infused products move from cultivator to processor and then to retailer.

They want to track this whole thing and they want to do it in a way that makes sense for all parties and is cost effective. I think that we’ll see that with the Blockchain technology. The Blockchain technology is open, verifiyable and can be private or public. So a processor might get a sign day, certain number and when you watch the seed to sale tracking transactions take place from say a cultivator to a processor we can see this number transacted this amount of cannabis plants or ounces or pounds or kilograms and you would be able to see it right on the open ledger. So it would be kind of somewhat private, somewhat public, but public enough that the officials could see what’s happening and where things are going and who to hold accountable for what.

Another interesting aspect of this that’s just emerging now is something called a Theorium. A theorium is a Blockchain based smart contracts. It’s a clever way and cheap way for contracts that will be doing the same thing over and over again to be done via the Blockchain, a Blockchain like technology where, let’s say, a processor is sending a thousand 5mg cookies to a dispensary. The theorium layer of technology could make that very cheap, affordable, transparent and legally binding if done in that way. So I’m not sure if I explained that well, but again a Google search on what a theorium is will yield you a lot more details on that. So look for the Blockchain technology to disrupt the seed to sale tracking market.

Okay let’s move on to the next trend, trend number two. So the Boomer Adoption of Cannabis is going to soar. I focus so much on the Baby Boomers because they’re somewhat haven’t adopted like GenX or millennials cannabis as much. Certainly a certain part of the Baby Boomers have, but there’s a whole group now that’s graying as they get into retirement age that are going to develop more aches and pains and they’re going to be searching for natural botanical solutions and that’s when all these different entrepreneurs are going to bring to the table increadible edibles, topicals, sprays, ointments, tinctures and then those hybrid medications I talked about before that will help the Boomers ease the aches and pains of their aging years.

So I really see that as a huge wave, and even anecdotally over the last year two people that I know personally that I never thought would be open to cannabis that are in that age cohort are now very much open to it and are curious because they’ve gotten that blessing from whatever state they live in.

So onward to trend number three. This is one is a little bit unusual so stick with me. I call this Dynamic Terpene Profiling Integrated with Gene Therapy of sorts. So we’re seeing kind of a gene expression, epigenetics and understanding your unique genomic footprint. We’re seeing technologies that kind of map that and then we’re going to see the study of terpenes kind of be mapped over that or laid over that in a way that you’ll be able to dial in exactly the kind of experience you want in more of a scientific way. So it may seem like that’s far off, but we’re in the hockey stick exponential growth of some of these technologies and I really think that in five years this easily could happen. It might be in the latter half of the five years, but I definitely see that coming to pass.

Okay on to number four, Intravenous CBD Cancer Fighting. So you may have never heard of a gentleman by the name of Dr. Linus Pauling. He was a Nobel laureate. Gosh I don’t know how many years ago now. It was over 50 years ago, but if you get on Google and check out any of his work, he did massive studies on using Vitamin C to kill cancer and it was just incredible what he did, but it requires amazing amounts of a certain kind of Vitamin C taken intravenously, and I think just as how he had breakthroughs with that I think you’re going to see the same thing with cannabis and cancer fighting.

So you’re going to see people taking cannabis oil or cannabis in some sort of a powder or intravenous medium that they can take in huge doses to work with their cancer, whatever they’re suffering with from cancer. Now I’m not recommending this. Obviously I’m not a doctor so don’t listen to me essentially. Talk to your doctor, know that behind the scenes these certain corporate interests, not that corporations are bad, but certain corporate interests are trying to make holistic, botanical remedies outlawed or extremely heavily regulated. So talk to your state and local congressman and representatives wherever you can to try to prevent that from happening.

Okay, last but not least is Autonomous Cannabis Drone and Car Deliveries. So that is starting to emerge I think now, but I think with areal drones and also cars, cars will come to your house and you would put in some sort of ID. Maybe there would be a scan of your face or some unique identifier for your cannabis or infused product is released to you from this autonomous car. Maybe you even have to get into the car to verify who you are and then it’s released somehow, but I think that will come to. I think as more states… there’s so many states that are incredibly indebted and they have no way to get out of the black hole of indebtedness because unlike the federal government that can just print money and diminish the purchasing power of our current paper money system, the states can’t do that. They can’t print money.

So they have to either default or renegotiate their debt or look for new revenue streams. And as they look for new revenue streams, they’ll look for things they can tax and they’ll look for ways to grow their state GDP with more business. And states that probably wouldn’t consider something like autonomous cannabis delivery or wouldn’t consider having cannabis in their state are going to move towards it because they need the revenue so desperately. So the desperation will drive them to that. I think Illinois, California, New Jersey, New York, the northeastern states for sure will be in that boat. That might be later in the five year period, but they are in really dire straits in terms of their state budget debt.

So those are my five trends past and my current five trends that will disrupt the cannabis industry. Let me know what you think about it. Send me an email at feedback(at)cannainsider(dot)com. Let me know if I was clear. I know some of these concepts are a little bit nerdy and maybe even seem out there a little bit, but I would be curious as to your thoughts about it. Please do check out the Blockchain technology. It was kind of in a dormant period for three to five years I would say and it was just being used by techy people that were really into computers, but now it’s kind of crossed over and reached that tipping point and we can see major venture capital firms like Andreessen Horowitz investing heavily into Blockchain technologies.

So I hope that was helpful. Again shoot me an email at feedback(at)cannainsider(dot)com and let me know what you thought of this and also let me know what you think about the show in general and what you would like to hear more of on CannaInsider. I’m always curious as to what you like to hear more of and what you like to hear less of. So don’t worry, I have thick skin. You can tell me what you liked and what you didn’t like. And thanks so much for listening. I never thought when I started this in 2014 how many people would listen. It’s been an incredible outpouring and I really appreciate you for listening and telling your friends about the show. So thanks and I look forward to more episodes soon.

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The Five Disruptive Trends Shaping The Cannabis Industry Now