The Highs and Lows in the Cannabis Business 2024
As we roll to the end of 2024, it’s time to spark a conversation about the year that was in cannabis. From headline-grabbing wins to buzzkill setbacks, this year has been a rollercoaster for both the legal market and the not-so-legal “grey” market. Grab your favorite strain—we’re breaking it all down.
The Highs of 2024
Legalization Momentum
This year saw several states make significant moves in cannabis legislation. Delaware legalized recreational cannabis in 2023, with sales beginning in 2024, while Kentucky focused on medical cannabis, set to launch its program on January 1, 2025. With 24 states and the District of Columbia now allowing recreational use, we’re inching closer to a fully green map. The growing acceptance has brought an influx of tax revenue, new jobs, and continued efforts to reduce stigma around cannabis use.
Tech Innovations
In 2024, the convergence of artificial intelligence (AI) and the cannabis industry led to several notable innovations:
Personalized Strain Recommendations: Applications like WeedPro introduced AI assistants that match users with suitable cannabis strains based on individual preferences and needs.
Cultivation Optimization: AI-driven tools have been developed to assist cultivators in enhancing growing conditions, improving yield and quality.
Automated Joint Rolling: Companies such as RollPros have introduced machines like the Blackbird, capable of automatically rolling joints with high precision, enhancing production efficiency.
These advancements have significantly enhanced user experiences and operational efficiencies within the cannabis sector.
The Lows of 2024
Federal Legalization Still Stalled
Despite the growing number of states embracing legalization, federal progress remains a pipedream. Congress held hearings but no meaningful action was taken. This continued stalemate keeps banking challenges and interstate commerce issues at the forefront, stifling growth for businesses in the legal market.
The Grey Market Strikes Back
While the legal market expanded, the grey market doubled down. In states like California and New York, unlicensed dispensaries continued to thrive, undercutting legal businesses with lower prices. Enforcement efforts were stepped up, but critics argue that without federal legalization and tax reform, the grey market isn’t going anywhere.
Overregulation Woes
Even in legalized states, businesses faced a maze of red tape. Excessive taxes, packaging regulations, and compliance requirements left many small operators struggling to stay afloat. Calls for reform grew louder as some markets teetered on the edge of collapse—a sobering reminder that legalization is only part of the equation.
Looking Ahead: Trends to Watch in 2025
Social Equity Programs 2.0: States are revisiting their social equity initiatives to ensure they’re actually benefiting marginalized communities, not just corporate giants. Efforts in states like Illinois and New York include revising licensing processes, offering more grants and funding for minority-owned businesses, and increasing access to education and mentorship for those impacted by prior cannabis convictions. These updated programs aim to correct early missteps where corporate entities often overshadowed the intended beneficiaries, creating a fairer and more inclusive cannabis landscape.
Microbusiness Boom: Consumers are craving more local, artisanal products, paving the way for smaller operators to shine. 2024 saw the rise of boutique cannabis brands that emphasized unique strains, sustainable cultivation practices, and hyper-local connections. Microbusinesses catered to discerning customers seeking authenticity and craft quality, differentiating themselves from larger, mass-market players. In regions like California and Oregon, microbusinesses thrived by tapping into community loyalty and offering exclusive, small-batch products.
Federal Rescheduling: With Donald Trump set to return as president in 2025 following his recent election victory, the cannabis industry is cautiously speculating about potential federal policy shifts. In 2023, the Department of Health and Human Services recommended rescheduling cannabis to Schedule III, which would ease banking, research, and taxation issues for the industry. While Trump's prior administration showed little enthusiasm for broad cannabis reform, some believe economic incentives and bipartisan support could encourage more significant action during his upcoming term. The decision now rests with the DEA, keeping the industry on edge as 2025 approaches.
Wellness Focus: Expect to see cannabis brands leaning harder into the wellness angle, with more products targeting specific use cases like sleep, anxiety, and fitness recovery. 2024 saw a surge in cannabis-based wellness innovations, including CBD-infused balms for muscle recovery, THC microdosing products designed to alleviate stress without impairing focus, and sleep-focused tinctures blending cannabinoids with adaptogens like ashwagandha. Companies are now marketing these products as alternatives to traditional pharmaceuticals, targeting health-conscious consumers looking for natural remedies tailored to modern lifestyles.
Final Puff
2024 was a year of growth, challenges, and everything in between for the cannabis industry. While there’s still work to be done, the progress we’ve made is worth celebrating. So here’s to a greener 2025—let’s keep blazing the trail, one step (or puff) at a time.
Stay dope, stay inspired, and keep creating. See you next year!
– The Team at Dope People
