E-commerce and Delivery are Huge Trends Shaping the Cannabis Market Right Now: Marc Matulich, Founder and CEO of Airfield Supply Co.
In recent years, it has been observed that the cannabis industry has proved its existence. What are the factors that are responsible for the growth of the cannabis market?
We were founded in 2010 as a medical dispensary to help patients obtain the cannabis they needed for their health. We rebranded in 2015, but our commitment to cannabis as medicine is just as strong today with the addition of recreational adult use. With our amazing endocannabinoid system, humans are built to interact with the cannabis plant in every part of our bodies from the skin to the liver. Research shows evidence that humans have been using this plant for thousands of years. It’s only natural, now that we can grow and distribute it legally — in California, at least — that cannabis would be increasingly popular.
As mainstream usage has spread, the industry has worked to improve its approachability and now we are excited to work with brands that speak to every possible consumer in a variety of form factors and styles. It really is just the beginning of this exciting adventure and one in which we are proud to be a leader.
Which factors are hampering the growth of the market and which efforts are taken by the market player to overcome these restraints?
I can only speak to California, where the hampers to growth are very evident. Cannabis is heavily and unfairly taxed in this state. Because it is so heavily taxed, illegal non-compliant cannabis is much cheaper, so many people buy that instead of legal products. California produces about 80% of the cannabis consumed in the United States but it is illegal to transport it across state lines. That means that those businesses that are legal and don’t cross state lines lose out to illegal growers who ship across the country and break national laws. And finally, it is extremely expensive to open a dispensary. Illegal dispensaries can easily lure in unsuspecting customers and disappear if they fear they’ll be caught. That allows them to undercut compliant dispensaries and presents a health risk to consumers.
What are the challenges faced by the industry players when it comes to the legalization process?
The ‘War on Drugs’ that began in the U.S. in the 1980s has cast a long shadow over our industry and there are many prejudices and misconceptions about cannabis that will take years to overcome. Because the federal government hasn’t approved it, each state can take its own course and many local governments are uninformed about this plant. National legalization will take time — but it will happen.
What are the recent developments and adoptions that can be beneficial for the expansion of the industry?
The compliant, legal market produces the safest product you could buy of any type. Our cannabis laws ensure that no one is accidentally sickened and that the cannabis they consume will not harm them. Once people have a continued experience like that, expansion will become that much easier.
In addition, we work hard as a market to expand consumer’s ability to conveniently purchase cannabis on their terms. Developments in integrated payment solutions, on-demand e-commerce and delivery have brought the cannabis retail industry closer in line with other consumer behaviors such as on-demand meals, shopping and transportation.
Also, according to you, which trends will shape the future of the cannabis market?
E-commerce and delivery are huge trends shaping the cannabis market right now. They were accelerated by the pandemic, when we had to quickly begin to serve our customers where they were — at home — rather than where we are in the dispensary. Edibles and oil extracts are also on the rise. I’m quite excited by the possibilities of infused beverages, too.
On a macro level, I’m also very excited about the growing consumer understanding of the plant and the nuances that make different strains complex. I think we will see a development in cannabis appreciation similar to wine, where flavor and profile comes to the forefront as people learn more about what they enjoy.
According to you, which region is leading the market and Why?
Well, I’m certainly prejudiced, but I think that Northern California cannabis is the best in the state — OK, in the world! California has long been a leader in the market and our collective history with the plant combined with a world-famous entrepreneurial spirit means we push fast into new areas — which is something I’m very proud of.
As recently, Airfield has added Treez Pay in the payment system. How will it help your customers to pay with Treez Pay?
Treez Pay allows our customers to have a touchless, contactless pre-payment system for delivery and an expedited experience for pickup. Cash can carry the COVID-19 virus for up to four days and we’d like to help both our customers and our staff avoid touching so much of it. Once set up, Treez Pay is a one-click moment, making it easier than ever for customers to make their purchases. But moreover, e-commerce systems like Treez Pay are absolutely the future of cannabis.
Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.