What is holding the cannabis industry back?

Factors thwarting the growth of the cannabis sector both in Canada and the U.S. include regulatory delays, supply issues, a fewer number of legal stores than initially expected, and tax concerns. But perhaps the biggest roadblock is black market sales.

Supply issues stemming from the fewer-than-expected number of legal stores in Canada was one of the major reasons for the downfall of Canadian pot companies last year. Regulatory delays in some provinces were a major hindrance to the growth of the recreational cannabis market after nationwide legalization. The marijuana companies had burdened themselves with overproduction by then, as demand was never the problem. All these factors contributed to the rise of illicit market sales and lowered legal sales.

It's the responsibility of marijuana users to understand the importance of ensuring that the products they use are legal and safe. It is also imperative that cannabis companies advertise and display their products in a way that gives consumers clear information about safety, quality, and proper usage. And it's the government's responsibility to ease restrictions on the legality of marijuana (and enforce regulations on quality) so that safe pot products can reach consumers easily and efficiently. State-level and federal legalization in the U.S. can further advance the industry.

Read more at fool.com

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