Hurdles in The Cannabis Revolution: Lessons from North America
The legalisation of the cannabis industry in California in 2016 was signaling the end of the illegal market and promising economic gains. Today leading California cannabis companies warn that they’re on the verge of collapse as most local governments have been reluctant to loosen regulatory frameworks, reduce taxes, permit wider range of product formats, and establish more attractive distribution systems for easier access. According to Euromonitor’s Global Lead for Nicotine and Cannabis Industries Shane MacGuill, uncertainty in the regulatory frameworks and lack of legal activity negatively impacts investments and social acceptance of the industry. More attractive prices, dynamism, authenticity, and easier access of the illegal propositions still remain more attractive to consumers. With more countries considering legalisation of the cannabis industry, learning from North American experience becomes critical. Euromonitor’s Shane highlights the importance of having a clear purpose for legalization that would set the basis for well-balanced regulatory frameworks and smooth transition from illegal to legal cannabis consumption.