Predictions For The Cannabis Industry In 2024 - What Does 2024 Hold For The Weed Industry?
A lot went down this year for the cannabis industry.
It was the year the world finally bloomed into a post-pandemic era, benefiting all kinds of industries including that of the cannabis industry. For the businesses that survived, the market did get tougher and more competitive than ever. However, there were incredible acquisitions, and several businesses finished this year stronger than ever too.
Also, polls reflected a growing support among Americans for cannabis legalization. Pot continues to grow as the substance of choice for overall well-being, and improved accessibility and growing legalization is good news for consumers all around the nation.
That said, it wasn’t without its challenges. Many businesses had no choice but to go bankrupt, close down offices in several states, and face the constant difficulties that came with taxation, finances, and banking. Cannabis still hasn’t been legalized on the federal level, leaving most of us feeling exhausted – but the fight must go on.
2023 is also the year that Professor Raphael Mechoulam passed away; also known as the Godfather of THC, Mechoulam and his team of researchers are singlehandedly responsible for the most important breakthroughs of cannabis we know today. He isolated THC, identified the endocannabinoid system, researched cannabinoids heavily, and advocated for marijuana research more than anyone else ever has.
So what can we expect or look forward to in 2024?
A Focus on Hemp-Derived Cannabinoids
Psychoactive THC and sedating CBD are no longer the two most famous cannabinoids in marijuana. Over the past few years, there has been a growing interest in the other cannabinoids found in the plant, and the myriad of therapeutic benefits they bring about. As a result, brands have launched several different kinds of products made with various cannabinoids, including those from hemp, such as Delta-8, Delta-9, and Delta-10.
Whitney Economics released a report a few weeks ago, revealing the strength of the hemp-derived cannabinoids market. According to the report, entitled: 2023 US National Hemp-Derived Cannabinoid Report, the demand for these cannabinoids amounted to $28.4 billion, much bigger than the legal sales of medical and recreational marijuana combined in 2022. That’s huge!
However, we have to see how lawmakers treat these cannabinoids, as delta-8 THC has become notorious for potential dangers due to lack of regulations.
Additionally, the increasingly massive cannabis beverage industry has already been infusing hemp-derived cannabinoids into their drinks. This has also caught the eye of alcohol and beverage giants, so we’ve already begun to see hemp-derived cannabinoids in drinks being sold in all kinds of drink stores around the country. It won’t be long before we start seeing them in statewide and national chains.
Will Cannabis Be Rescheduled?
We have been waiting far too long for cannabis to be rescheduled or descheduled. Even changing of categories would greatly give the industry a much-needed boost.
Experts predict that there is a big possibility this may finally happy, just before the 2024 Elections. Doing so will immediately benefit cannabis companies more than any other reform or law, most especially when it comes to taxes because the current Schedule 1 category of cannabis prevents businesses from accounting typical business expenses.
In particular, the IRS tax code 280 as mentioned above would no longer be applicable to cannabis businesses. This will make cannabis businesses profitable.
Even while cannabis should be descheduled entirely instead of just rescheduling it to Schedule III, a Schedule II status would be disappointing but it would definitely be better than nothing. If weed was moved to a Schedule II status, it would help push the SAFER Banking Act, which increases the chances of cannabis businesses to access the financial support they have badly needed. Should the SAFER Banking Act pass, customers would finally be able to pay for their weed purchases using a credit card, and it would enable businesses to have access to capital, insurance, and even retirement benefits for their staff. The tax deductions would also contribute to businesses’ bottom lines.
Greater Variation As Well As Stability In Products
In 2023, most were surprised to see companies using cannabis trim or shake in products.
Stoners once though these excess trim from cannabis was useless, and tossed it away. We’ve now become more prudent and creative as consumers as well as businesses, so we no longer throw shake and trim away. That’s primarily because it’s a much cheaper way to get high or medicate; they’re significantly more affordable than bud and with people pinching pennies, it’s the way to go. These are excellent choices for smoking as well as for making tinctures, topicals, tea, and edibles.
Also, pre-rolls will continue to surge. Reports have shown that pre-rolls continued to surpass flower for many years not just in the United States but in Canada as well. Multipacks as well as pre-rolls are among the top categories for sales in North America, which may result to a decrease in prices for oils as well as flower. We can expect to see better quality pre-rolls at better prices next year onwards.
Conclusion
These are just some of the many exciting things we can look forward to in 2024 for the legal cannabis market in the United States. It will be an exciting ride for sure, but one that’s action-packed and will have its fair share of bumps along the way – and a handful of lessons to take into the following year. One thing’s for sure: the cannabis industry is only going forward and not backward!
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