Business
10 marijuana industry trends to watch for in 2023
The new year brings renewed optimism and hope for the marijuana industry, which could see a raft of impactful trends for cannabis business executives.
Overall, 2022 was a tough year for the cannabis industry, with macroeconomic headwinds including inflation as well as industry-specific obstacles such as overproduction and a lack of capital investment.
Looking ahead, the marijuana market can expect, to name a few:
- A prolonged slowdown of mergers and acquisitions.
- Calls for moratoriums in mature markets struggling with too much supply.
- Product segmentation at the retail level as consumers become increasingly sophisticated in buying habits.
Here are the top 10 marijuana industry trends to watch for in 2023, as determined by MJBizDaily staffers:
1. Major consolidation in key markets
After the boom times during the COVID-19 pandemic lockdowns, the cannabis industry doesn’t appear as recession-proof as it once did.
Companies in mature recreational markets such as Colorado and Washington state are struggling with falling prices.
Other markets such as Michigan and Massachusetts – which are on the younger side for adult-use sales – have already reached a saturation point.
In response, ancillary and plant-touching companies alike are cutting employees.
Despite the cost-cutting measures, many companies will still fail this year, licenses will be absorbed by bigger, corporate-style businesses and only the most-cost-efficient players will survive.
2. Mergers and acquisitions grind to a halt
In 2022, M&A activity slowed dramatically, and with ongoing reports that access to capital has all but dried up across the U.S., the trend is sure to persist.
There was a period where MJBizDaily frequently reported on company deals above $100 million. But those are now few and far between.
Many deals in 2022 that we covered were below $25 million.
Even the value of all-stock or partly stock deals agreed upon last year has fallen significantly, along with the stock market.
It’s not likely that trend will turn around.
3. Delta-8 THC remains a burr in the industry’s saddle
Almost every state-legal marijuana market made some type of rule to govern delta-8 THC in the past year.
States with limited or no legal marijuana markets – and even those with robust laws – saw delta-8 products proliferate nearly unregulated, providing a major source of competition for the licensed industry.
According to the 2018 Farm Bill that legalized nationwide hemp production as well as hemp “derivatives” and “extracts,” cannabinoids made from extracted CBD are legal as long as the plant where they began met the legal definition of hemp.
So it’s no violation of the U.S. Controlled Substances Act to extract CBD from a hemp flower and then put the CBD through a manufacturing process.
Without any change to the law, and that’s unlikely, the delta-8 market is likely to continue as is, which is a major headache for the cannabis industry.
4. THC potency obsession and lab shopping draw more attention
The issue of the industry’s obsession with THC potency will finally come to a head.
A long-running problem, the potency issue really bubbled up in 2022, with testing laboratories being sued for misrepresenting THC numbers as well as state regulators from Florida to Nevada moving to fine and suspend labs for violations.
Industry watchers hope this could lead to less lab shopping and better consumer education on the many other beneficial components of the cannabis plant.
That, in turn, could shift the focus of the industry away from cannabinoid content.
5. Calls for moratoriums grow louder
As growers in mature markets experience price compression and oversaturation while more cultivation capacity comes online, some are calling for help from state governments.
Companies in states such as Colorado and Michigan are asking state regulators to step in and put a moratorium on new licensing.
It remains to be seen what the effects of such artificial market controls have on business success.
Similar action in Oregon a few years ago did not solve that market’s overproduction problem.
6. Product segmentation and consumer sophistication at the retail store
Flower sales will continue to grow in virtually every market, but flower is losing market share to other products such as vapes, concentrates and edibles as consumers become more sophisticated.
Frequent users are not replacing flower with other products but, rather, are smoking flower at the same rates while adding other form factors into their consumption habits.
Live resin will continue to be popular as a consumer-favorite extract, both as a stand-alone concentrate and as something infused into pre-rolls, cartridges and edibles.
The product is becoming more popular than distillate, and distillate, while not exactly disappearing, will decline in appeal in the face of live resin preferences.
New consumers make up only 6% of the cannabis market and don’t spend that much money, according to Chicago-based cannabis analytics firm Brightfield Group.
Rather, most sales come from frequent marijuana users: 47% of cannabis users consume multiple times daily, 17% consume once per day and 10% consume five times per week or more.
That trend will only roll on.
A couple of other segments to watch:
- Sales of infused pre-rolls have grown by a multiple of 5 since January 2020, according to data-analytics firm Headset.
- Vapes have not only bounced back from the 2019 vape crisis, but they also are now the No. 2-selling marijuana item.
7. New York will struggle to contain the illicit market after launch of recreational cannabis
The conventional wisdom has long been that it’s easier to order cannabis delivered to your New York apartment than it is to order a pizza.
Couple that with the exuberance entrepreneurs showed this year in the state by setting up pop-up cannabis shops, unlicensed dispensaries and vans selling marijuana out of their backdoors, and the licensed market has its work cut out for it.
The state is trying to think outside the box to distinguish between licensed and illicit cannabis companies, but slapping a QR code on a store window likely won’t be enough.
To lure consumers away from the illicit market, regulators will need to make business conditions friendly and keep taxes low.
Simply leaning on the safety and testing of licensed products won’t cut it.
8. Canada business woes might be cut short
In recent years, large Canadian companies have been selling cannabis at a loss, losing billions of dollars and undercutting competitors in the process – with the help of Wall Street financing.
That trend might come to an end if Wall Street’s easy money runs dry, forcing large companies to sink or swim on their own.
On the cultivation front, Canada has produced far more cannabis than it can sell. That won’t change in 2023, but inventory might peak and start falling thereafter.
By way of retail, some stores have started closing in certain provinces, particularly in parts of oversaturated urban markets.
Retail consolidation and closures will continue, but despite that, more stores will continue to open in other places. Expect a net gain in stores.
9. Unionization efforts will see sustained success
Unionization of the cannabis industry will continue.
Organizers such as the United Food and Commercial Workers and the Teamsters view the cannabis industry as ripe for their efforts, considering it’s one of the largest industries in the United States with abundant growth.
In Canada, labor organizers say unionization and strikes among cannabis retail employees are being driven by worker concerns including low pay and health and safety issues.
Not all cannabis companies are friendly to union efforts, so expect to hear about more fights between workers and businesses.
10. Legalization efforts redouble after mixed success of 2022
Marijuana legalization’s momentum hit a red wall in conservative states in the South and West, but the 2022 election did bring victories in Maryland and Missouri.
On the federal front, industry watchers were hopeful for the incremental success of banking reform. That didn’t happen, but this year will bring another opportunity.
Of course, the ultimate goal is federal legalization, and President Joe Biden’s announcement that his administration would review whether marijuana should remain a Schedule 1 drug is going to put wind in the sails of advocates and reformers.
Also worth watching are the states that failed to legalize via their legislatures in 2022, including, Delaware, Kansas and North and South Carolina.
Source: https://mjbizdaily.com/10-cannabis-industry-trends-to-watch-for-in-2023/
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
AI & Technology
Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations
Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).
The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.
Trial Push Despite Multi-Million Euro Settlement
The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.
Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.
A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.
Allegations of VAT Evasion Through Marketplace Sellers
At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.
Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.
Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.
Italian Government Named as Affected Party
In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.
Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.
Multiple Investigations Add to Pressure
The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.
Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.
In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.
Amazon Denies Allegations
Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.
Broader Impact on Europe’s Digital Economy
If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.
With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
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