Implications of Medical & Recreational Marijuana Legalization on Tech Sector


Nov. 18

3.48 K


The legalization of Medical & Recreational marijuana in United States and Canada brings about some hefty opportunities for technology companies looking to enter this new, uncharted market. Every corner of the industry will be impacted by technology, whether it is using artificial intelligence with cannabis production, smart warehouse and logistics solutions with supply chain management, mobile applications for connecting to local dispensaries, and eCommerce websites for distribution. Companies across both the United States and Canada will be able to cash in by providing delivery services, inventory and customer relationship management options, and loyalty rewards programs to name a few. In this article, we will explore how this legalization and the role of digitization will enable and pave the way for technology-based services.

Why Does Legalization Mean Digitization?

Digitization refers to the adoption and integration of digital technologies into our everyday life, with key market players in the cannabis industry being companies that produce and distribute through computerized systems and advanced technologies. The most obvious of these will be new technologies centered around the formulation and delivery of cannabis, as well as, the entire consumer experience of cannabis. With this said though, let’s take a closer look at how the role of technology will impact the cannabis market as a whole.

1. Online Ordering & eCommerce:

One of the most obvious roles that technology plays is in the delivery of cannabis is through online ordering and eCommerce websites. In Canada, Shopify was chosen to be the retail platform for online sales in cannabis, not because the company is in the business of selling marijuana but because they had the eCommerce platform best designed for it.

You may like to refer: Cost to develop On demand Cannabis Delivery App

Beyond this, numerous eCommerce websites and mobile applications are being created to connect online orders with customer delivery, with some even considering drone delivery in the future (Eaze Company – United States).

Another avenue to be considered is Bitcoin, which greatly reduces the cost of transferring payments to and from consumers to retailers. Not only does it eliminate charge backs but it can also track cannabis sales from seed to end-sale. This is important as it means the decentralized ledger can verify the supply chain of marijuana without compromising its security.

2. Logistics Management & Asset Tracking:

As the number of dispensaries and retailers grow, the delivery of marijuana products to consumers and patients also increases. This can cause some confusion around the delivery process as not all cities or states allow marijuana delivery (a non-issue in Canada) and thus delivery becomes time-consuming. The information that goes hand-in-hand with delivery needs to be kept straight to keep confusion at a minimum, which has enabled delivery logistics software to flourish. This type of software helps dispensaries dispatch, keep track of, and analyze deliveries. This allows companies to then optimize their process and reduce both time and costs spent.

Beyond this, as marijuana products get moved from one stakeholder to the next, whether this is from the cultivator to the manufacturer, the manufacturer to the dispensary, or the dispensary to the retailer, there is risk involved. Unfortunately, theft is not uncommon and because of this, sophisticated security technology is being created. Things like surveillance cameras for delivery trucks, GPS tracking solutions and recording software are becoming quite popular among cannabis companies. To take this a step further, we are even seeing mobile applications that track legally grown pot to ensure that it does not go onto the black market and that all growers comply with their state’s tax law obligations.

3. Cannabis Smart Farming Techniques:

It should come as no surprise that the future of IoT based smart farming is not very far off as robots in greenhouses are pushing conventional cultivation techniques. Any medium to large commercial operation must rely on some automation techniques in order to successfully manage the logistics of growing cannabis. Some of these technologies include making routine climate adjustments based on zone-to-zone data and real-time factors, which allow for the grower to take a step back from micromanaging each individual plant.

You may like to refer: Cost to build IoT based PoC on Smart Farming System

As some tech companies focus on the climate control segment, others are focusing on creating robots that can complete complicated tasks like turning the soil and weeding the plants. In addition to this, there are some companies who are using data-capture technology to enable growers to identify what conditions are optimal for their plants, which will lead to high-quality yields and more popular product. We are even seeing advances in irrigation systems and heat lamps, as some companies are focusing on bringing lower energy loads to growers as a way to incentivize producers and manufacturers to reduce their energy expenses while still increasing output volume.

4. Big Data & Artificial Intelligence Use for Purchase Patterns and Trends:

Whether it is through the collection of data via mobile applications and blockchain, informed decisions based on predictive analytics, or machine learning, technology is enabling companies to reduce risk and optimize the decision-making process. The data that is collected from consumers can reveal trends in production schedules, items sold, grow cycles, packaging needs, sales projections, wholesale prices, healthcare trends, consumer trends in spending, market share, product launches, and even re-ordering and inventory trends. This kind of information helps businesses gain a market advantage as it mitigates risks and increases profit margins.

How Let’s Nurture can help You?

As the cannabis industry continues to grow and be pervaded by advanced technology, more and more companies are encouraged to get into the market. In being relatively new, there’s still lots of room for innovation within the industry. We have a large local presence in both the United States and Canada, are experts in on-demand platform development, and have core teams both IoT precision farming, big data analysis, and machine learning. We provide end-to-end web and mobile solutions to small, medium, and large scale businesses and have flexible models to fit all types of businesses. With our experience, knowledge, and local presence in the Western market, we can help elevate your cannabis company to the next level by leveraging smart solutions.

If you are looking to get into the cannabis market but are not sure where to start, get in touch with our expert consultants for instant help.


Lets Nurture
Posted by Lets Nurture

Blog A directory of wonderful things

6 Business Models That Online Marketplaces Use to Earn Money

As the ongoing pandemic continues to push consumers to shop online and get delivery directly to their homes in a bid to stay safe from the spread of Covid-19, online …

Store sensitive data using KeyChain

There is always some sensitive data that our App holds for instance, Passwords, Touch Id, Certificates, Tokens or Biometric information. In general, React Native does not come bundled with any …

How to Tackle & Manage SKUs as an Ecommerce Business in 2021

If you are just starting to build up your eCommerce business, you may have started thinking about the size of your inventory but not necessarily, how you are going to …

How to setup Contact form 7 plugin In WordPress

Contact Form 7 is the most popular and oldest WordPress contact form plugin. It is easy to integrate and equally easy to deploy. For setup contact form 7 follow the …

Steps to Create Apple Enterprise Developer Account

The Apple Developer Enterprise Program allows large organizations to develop and deploy proprietary, internal-use apps to their employees. This program is for specific use cases that require private distribution directly …

React Native: First Demo

Let us start to build our first React Native application on Windows as a development operating system and Android as a target operating system. If you are looking to set …

AdMob Mediation in Android

We all know about Admob Ads very well. Here, I would like to explain what mediation features and how it will be useful for developers. Let’s take a simple one …

Laundry On-Demand services: A Successful App Service You Should Consider

With our hectic lifestyles and the need to physically distance due to the ongoing pandemic, on-demand app services are rising in popularity. One such category for this niche is on-demand …

How to Setup Twilio Package for SMS in Laravel

In your application workflow, you may need to pass important information to your users. Most services require your users to have an internet connection and unfortunately, this isn’t always the …

Firebase Dynamic Links

Deep links are a powerful and essential part of a market’s toolkit. They are connecting users to campaigns, streamlining user experience and exposing users to the right marking. Many developers …

Kotlin Coroutines in Android

Multithreading is a well known programming concept which all developers might have come across. The concept of multithreading is a vast subject and includes complex mechanisms in it, but in …

Google in app purchase in android app

Before we start with app purchase, Let’s get a basic idea of what type of digital content we are selling to users. Google’s Billing system gives us mainly two types …

How Outsourcing & Subcontracting help companies with Disaster Management

According to recent google reports, 114 countries have reported that 1,18,000 have contracted Covid-19, the disease caused by the virus, known as SARS-CoV2. Nearly 4,300 people have died. Introduction Where …

10 most extensively used Python libraries

Python, being one of the most sought after programming languages, has a huge collection of libraries. In fact, this expansive set of libraries can be considered as one of the …

8 Chatbot Development Frameworks: Building a Better Bot for Your Business

There has been an explosion in the use of chatbots across both business websites and messaging applications, mainly because businesses want to cater to their customers and customers have a …

Implementation of AI in Financial Planning

AI focuses on a future where machines not only do all of the manual labour, as they have done since the industrial revolution but also the work which requires Intelligence …

Importance of reliable IT outsourcing partner during a global pandemic

Though a bad reputation has developed over the years, outsourcing is on the rise and for good reason: it is a sound financial strategy for companies, of all sizes and …

Tech in Prenatal Care-Empowering rural women with a mobile first avenue for information

In the era of wireless technology, where there are more mobile phones than people, mobile applications play an important role for rural women to improve their maternal health. Technology is …

Survival of the Fittest is now the Survival of the Agilest

A joint study by Forbes magazine and Scrum Alliance has found that Agile practices are gaining a lot more popularity among SME businesses and across sizes that and include startups, …

How agile will transform the organization framework?

Innovation is no longer just about new technology, it is about new models of organization. The high tech breakthroughs that do count today are not only about speed and performance …


Have an !dea or need help with your current business?

We use cookies to give you tailored experiences on our website.