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Cannabis 2024 in the US: Growth, Innovation, and Regulatory Shifts

16 February 2024 / Category: Blog

As we step into 2024, the cannabis industry in the United States stands on the cusp of an era marked by unprecedented growth, technological innovation, and pivotal legislative developments. This overview aims to shed light on the key insights and predictions shaping the industry, presented in a manner that’s easily digestible to all readers.

1. Growth and Expansion

  • The global cannabis market is projected to witness substantial expansion, driven by the emergence of new legal markets, the introduction of innovative product offerings, and significant technological advancements. According to a report by Grand View Research, retail cannabis sales are expected to surge to $53.5 billion by 2027, with a notable acceleration in adult-use sales (Grand View Research, 2020).

2. Market Dynamics

  • Technological Advancements: The adoption of blockchain and artificial intelligence (AI) is set to redefine supply chain management and compliance tracking within the cannabis industry, promising enhanced efficiency and transparency.
  • The Secure and Fair Enforcement Regulation Banking Act (SAFER Banking Act): This proposed legislation aims to mitigate the banking challenges faced by cannabis businesses, potentially transforming the financial landscape of the industry.

2.1. Banking Access for Cannabis Businesses

The SAFER Banking Act intends to facilitate access to banking services for cannabis businesses operating legally within their states, addressing a significant barrier to industry growth.

2.2. Impact on Insurance Industry

By encompassing insurance services, the SAFER Banking Act could enable insurers to offer coverage to cannabis businesses without the risk of penalization, fostering a more secure operational environment.

2.3. Potential Benefits

  • Increased Banking Access: The enactment of the SAFER Banking Act could lead to a broader spectrum of financial institutions providing services to cannabis-related businesses, enhancing the industry’s financial stability.
  • Risk Mitigation: The availability of comprehensive insurance coverage is anticipated to play a critical role in mitigating operational risks within the cannabis sector.

Product Innovation

The trend towards personalized cannabis products is gaining momentum as consumers become increasingly educated and discerning. This shift underscores the industry’s move towards catering to individual preferences, although pre-rolls are expected to maintain their popularity as a top-selling item in 2024.

Legislative Predictions

  • Legalization: The trajectory towards the legalization of recreational cannabis is set to continue, with several states anticipated to join the movement in 2024.
  • SAFE Banking Act: Progress on this crucial legislative piece is eagerly awaited, with potential implications for the industry’s access to banking and financial services.
  • Federal Rescheduling: Speculation surrounds possible actions by President Biden regarding the federal rescheduling of cannabis, which could significantly alter the regulatory framework and elevate the industry’s legitimacy.

In summary, the cannabis industry in the United States is poised for a transformative year in 2024, characterized by significant growth, the advent of groundbreaking technologies, and crucial legislative advancements. These developments not only highlight the dynamic nature of the cannabis sector but also point towards a future where the industry’s potential is fully realized, benefitting businesses, consumers, and the economy at large.