BackCannabis in the post-legalisation era: growing trends in emerging markets
07.01.2025
Regulation is transforming the cannabis industry, marking the beginning of a new post-legalisation era. This is a paradigm shift that allows growers to operate transparently whilst generating economic and social change. We will now delve into how these markets are embracing cannabis cultivation, what the key trends are, and what challenges they face.
Trends in cannabis cultivation in new markets
Regulation in many countries has allowed marijuana cultivation to become a legal activity, with the advances that this entails:
- Sustainability and organic growing: Cannabis cultivation can have a negative impact on the ecosystem if it’s not integrated properly, as has already happened in other more established legal markets (such as that of California). For this reason, many growers in areas like Humboldt County have seen the need to implement more sustainable techniques, such as "dry farming" or regenerative cultivation. The use of biological fertilisers, efficient management of resources like water, or the incorporation of renewable energy systems, are becoming key pillars in some of these emerging markets.
- Automation and technology: Technological advances have entered the legal ecosystem with force. Some examples of this include IoT sensors for a better control of the grow parameters, LED lighting equipment to reduce production costs, vertical growing techniques to make the most of the space, and automated systems for yield maximisation. In addition, artificial intelligence is already being incorporated into cannabis cultivation, helping to prevent problems and monitor plant health through the implementation of techniques such as hyperspectral imaging and 3D scanning
- Product quality and safety: Legal protection is accompanied by an increased demand for premium pesticide-free products with different cannabinoid profiles. Given that the mainstream public includes both consumers looking for high-THC strains, and those seeking other more sustainable effects from varieties rich in CBD or other cannabinoids, the specialisation and stability of cannabis genetics is definitely key.
Collaboration between cannabis producers and public organisations
Another emerging trend in some legal models (as in the case of Colombia) is the synergy between private companies and the country’s government. Thanks to its good climatic conditions and low production costs, Colombia has established itself as one of the leading countries in the export of medical cannabis. The state has made a strong commitment to the implementation of good agricultural practices and biosecurity measures to ensure the quality and safety of its products, whilst also incorporating advanced growing technologies for process optimisation. The country has also invested in R&D to develop new varieties with specific cannabinoid profiles and traits that are better adapted to the local climatic conditions. Another interesting proposal in Colombia has been the development of cannabis clusters in different regions of the country, which promote collaboration between producers, universities, and the government, to encourage the optimisation of cannabis growing techniques and marketing. This is a value chain that allows the sharing of resources, knowledge, and technology, with the different agencies working together to offer better quality products at a lower cost, thereby improving the region’s competitiveness at international level. This strategy has attracted significant foreign capital investment, generating local employment and contributing positively to the country’s economy. A good example of this is the Valle del Cauca cannabis cluster, where local producers have partnered with universities to improve growing techniques, while the government has helped to finance all the necessary infrastructure.
What challenges are the new legal cannabis markets facing?
One of the biggest challenges for these young markets is the complexity of regulation. Uncertainty about possible changes or setbacks in legislation can undermine confidence among investors, making long-term planning difficult. Expensive licensing or time-consuming bureaucratic processes are some of the obstacles faced by companies that don’t have enough economic muscle to wait.
Lack of infrastructure
In some newly established markets, especially in less developed countries, the lack of infrastructure is also a huge challenge. There are cases (as in South Africa or Thailand) where the lack of adequate facilities for GMP compliance has started a race against time for industry development. The major problems faced by these regions are power grid failures, the lack of adequate facilities for indoor cannabis cultivation, and the shortage of laboratories where quality testing can be carried out.
Access to funding
Despite regulation, companies in the sector are still facing problems to obtain funding from traditional banks due to the associated stigma and the complexity of the international framework. This is a factor which forces many to seek alternatives such as private funding or access to venture capital. This has slowed the growth of the industry in countries like South Africa, where producers are looking for alternatives to finance their crops, such as microcredits or cooperatives backed by foreign capital investments. In other countries like Colombia or Thailand, new solutions are emerging, such as cryptocurrency financing, which is a trend that is gaining more and more traction.
What are the drivers of growth?
Legal protection is undoubtedly the sector’s biggest catalyst for growth. An example of this is found in Morocco, where around 200 licences have already been granted following the legalisation of cannabis for medical use in 2021. These producers operate in a country where cannabis has been grown using traditional methods for centuries. Therefore, the transition to the legal market has not been easy for all of them, given that the implementation of the new regulations generates additional costs. However, the legalisation of cannabis under a framework that’s more accessible for locals (as in the case of Thailand) has led to both a massive proliferation of businesses related to the cannabis plant and to a huge wave of cannabis tourism. Furthermore, public education campaigns on the responsible use of cannabis, together with the results of scientific research supporting its properties, have increased social acceptance, which has allowed the sector to expand.
Conclusion
The post-legalisation era presents a vibrant outlook full of possibilities for cannabis cultivation. Despite regulatory and financial challenges, the combination of technological advances with improvements in product quality and public acceptance is paving the way for a promising future.