A Growing Cannabis Market in 2024
In 2024, the cannabis market is expected to continue growing, building on the momentum from 2023, when Ohio, Delaware, and Minnesota joined the ranks of states with legal weed for recreational use. These legalizations bring the total number of recreational states to 24, nearly 50% of all states in the US. Experts also predict that Florida and Pennsylvania might vote on recreational cannabis this year!
As the United States legal cannabis market continues to skyrocket, it becomes increasingly crucial for all industry stakeholders to plan for the future of cannabis strategically. We recommend staying current with cannabis trends and consumer behaviors to maintain a competitive edge. Get started by reading this article to gain valuable insights into the market's future with our cannabis industry predictions for 2024.
Future Cannabis Market Growth
Now that adult-use cannabis is legal in 24 states, the cannabis market is experiencing a remarkable boom. Projections indicate that this year alone, cannabis is predicted to contribute $115.2 billion to the economy. Statista, a global data and business intelligence platform, expects growth to continue at a compound annual growth rate (CAGR) of 13.93% over the next 4 years. By 2028, the market is expected to reach an impressive revenue milestone of over $67 billion. This trajectory highlights the dynamic growth of the cannabis industry, presenting substantial economic opportunities on the horizon.
Cannabis Industry Predictions for 2024
DEA Rescheduling Marijuana from Schedule 1 to Schedule 3
The movement towards federal legalization is trending in the right direction as the Department of Health and Human Services recommends a rescheduling of Marijuana within the Drug Enforcement Agency. The proposal advocates for the reclassification of Marijuana, suggesting its move from a Schedule 3 substance to the less restrictive Schedule 1 category. This is the most significant event in the history of cannabis reform at the federal level. While acknowledging the complexity and duration of the process, the anticipated positive impact on the growth of the cannabis market is substantial!
Tax Relief for Marijuana-Related Businesses
The Schedule 1 label on Marijuana has brought forth crippling effects to even state-legal cannabis industries. The rescheduling would make cannabis inapplicable to Section 280E, which makes state-legal cannabis businesses unable to deduct several ordinary business expenses on their federal tax returns. The result of rescheduling would bring forth more money to the already booming cannabis market. In light of this news, some states have already begun to push for tax relief from previous years.
Florida and Pennsylvania Legalize Marijunana in 2024
Following the legalization of adult-use cannabis in Ohio, a movement has started for other notoriously conservative states to follow suit. Notably, Florida has embraced this momentum with a legalization proposal that is set to be presented on the November 2024 ballot. Despite the recent constitutional changes in Florida, introducing a 60% vote requirement for approval, there is considerable optimism that the state is on track to join the ranks of those with a legal adult-use cannabis market.
Pennsylvania has also made significant strides in cannabis legalization. The Pennsylvania legislature just passed a significant expansion in the state's medical marijuana industry. Though legalization motions in 2024 are a long shot, 5 of the 6 bordering states to Pennsylvania have legalized adult-use cannabis, putting pressure on their legislators to take action.
2024 Cannabis Consumer Predictions
Consumers Prefer Electric Tech vs Traditional
Technology continues to advance as the world strives for more and more innovation. Consumers expect innovation from every industry, and their cannabis accessories are no different. We expect to see a push for electronic devices over traditional ones in 2024, especially for hard-to-handle cannabis concentrates. We predict a growing demand for electronic devices over their traditional counterparts.
Electronic Dab Rigs have continued to gain popularity with consumers because they take the guesswork out of consumption. By allowing consumers to set desired temperatures, they offer a quicker and safer heating/cooling process that brings out the best flavor and produces smooth vapor clouds each time. With traditional glass dab rigs, there's some trial and error to perfect the dab. Using a butane torch can be dangerous for inexperienced users and may deter many from even attempting dabbing. Thats why we will continue to see consumers looking for an easier, more efficient way to consume concentrates in 2024.
Making the Shift to Tobacco Alternatives
It's no secret that tobacco is not the healthiest option and cannabis consumers are making the shift to alternatives. Some cannabis consumers prefer to roll their product rather than using glass or vaporizers, so it is crucial to offer healthier options that provide the same experience as traditional tobacco-based products. Many are turning to blunt wraps made of hemp or palm leaf.
King Palm has been ahead of the curve in this consumer shift by creating pre-rolled stuffable wraps out of cordia palm leaves with a built-in filter made of corn husk. The Cordia leaf-based wrap gives a subtle taste and aroma, unlike the pungent odor of burnt tobacco. Anticipating consumers' changing preferences by stocking tobacco alternatives in your store will help customers continue to make better decisions this year!
Gen Z & Millennial Consumers Love Cannabis and Vape Pens
The dominant force driving cannabis and THC vape pen sales in the United States lies within the demographic of Gen Z and Millennials or adults ages 21-43. According to data from Headset, Gen Z and Millennials makeup 62.8% of all cannabis sales and 70.8% of all vape pen sales. Understanding and catering to the preferences of Gen Z and Millennials can significantly enhance the effectiveness of your marketing efforts in capturing this dynamic consumer base.
Wax Pen Category Will Continue to Expand
As consumers demand more advanced technology, especially when it comes to dabs, the wax pen category has continued to expand. Cannabis accessory brands are continuing to innovate, bringing consumers incredible new products throughout the year. We expect to see this continue, as industry-leading brands like Ooze continue to launch innovative new products in the category with advanced technology like sub-ohm vaping.
Dry Herb Vapes Will Grow in Popularity
Dry herb vaporizers have seen a steady increase in popularity over the years, with innovation dominating the industry. Consumers are excited to invest in modern dry herb vape technology that gives them the cleanest way to smoke their flower. Whether consumers seek a healthier alternative to consuming flower or enjoy discrete on-the-go consumption, dry herb vaporizers will continue to be in the top-selling cannabis accessories.
In navigating the dynamic landscape of the cannabis industry in 2024, there are several things that businesses can do to stay ahead of the curve. By strategic planning, staying on top of trends, understanding the changing landscape of cannabis-related laws and tax codes, and catering to evolving consumer preferences, you will see boundless success in this flourishing market!