Ten Cannabis Trends/Industry Predictions for 2024

The cannabis industry is a rapidly evolving sector, and entrepreneurs or individuals seeking to establish themselves in this field may find it challenging to remain current with the latest developments, regulations, technologies, and best practices. Despite lingering societal stigmas surrounding the consumption of cannabis, the industry has experienced significant growth and transformation. It has emerged as a multi-billion-dollar industry with no signs of slowing down.

As we look towards 2024, the cannabis industry is poised for a promising future. Business owners must remain updated with the industry’s current state and stay current with future predictions. Given that 2024 is an election year, significant shifts and changes in the current state of cannabis, consumer preferences, and legal status may occur. This blog aims to provide insights into ten trends and predictions shaping the cannabis landscape.

Ten Trends and Predictions for 2024:

1. Wider Acceptance of Cannabis: According to Gallup, 50% of Americans have tried marijuana at some point, marking a significant increase from previous years and 70% of Americans think cannabis should be legal. Several states have either considered or plan to include marijuana legalization on their ballots, indicating a shift in public opinion and state policies. Increased legalization will lead to more mainstream selling of cannabis products and reduce stigmas towards dispensaries.
2. Market Growth: The cannabis industry in the United States is expected to substantially grow, with an anticipated increase of $46,904.91 million and an annual growth rate of 24.03% projected between 2022 and 2027. As more states legalize cannabis, an increasing number of businesses are establishing themselves in the legal market. This growth is expected to create job opportunities and stimulate the economy. Entrepreneurs may benefit from this trend by leveraging the educational opportunities that arise with new consumers entering the market and by continuing to produce high-quality products. As the demand for cannabis rises, there is the potential for job creation and overall economic growth in the industry.
3. New Product Offerings: Innovation is crucial in attracting potential customers. Around 39% of potential consumers in adult-use states describe themselves as being open to trying cannabis in the next six months. Still, only 18% are interested in trying the traditional form of smoking flower. Retailers must offer a variety of options, such as edibles, topicals, and beverages, to cater to consumers who prefer alternatives to smoking.
4. Sustainable Practices: As environmentally conscious consumers become more prevalent, the cannabis industry is expected to adopt sustainable cultivation practices and eco-friendly packaging. Dispensaries can consider this when sourcing their products and providing products that align with consumer values, even if it comes at a higher price point.
5. Capturing the Millennial and Gen Z Market: Currently, the millennial age group captures 46.2% of every dollar spent on weed, making them the largest demographic of cannabis consumers. But, Gen Z is the fastest-growing group of cannabis users eating into the Millennial market share. Each year, their percentage share of cannabis sales has grown by 11.3% and the signs show that they will become one of the biggest spenders in the industry. This demographic has grown up in a world where cannabis was legal in parts of the country and will advocate for it to become legal in others. Businesses must take note of their consumption habits to create products in the market that are best suited for these new consumer groups and make them excited. Many unlikely businesses are looking to get into the cannabis industry to grab a piece of the growth such as Coca-Cola and Hunt’s Ketchup, finding ways to implement cannabis using CBD.
6. More Data Collection: Advancements in technology have enabled industry leaders to gather insights into customer behaviors, cultivation optimization, and personalized product recommendations. This will enable business owners to cater to their customer’s needs more effectively and provide consumers with factual consumer and medical data.
7. Growth in Medical Cannabis and Research: As more states legalize cannabis for medical and recreational use, there will be increased research and understanding of the medical properties and potential benefits for users. With more reputable studies, medical professionals and patients may be open to cannabis as an alternative treatment option.
8. More Consumer Education About Cannabis: For many consumers, cannabis is a relatively unknown topic. Dispensaries and other legal market entities should provide information about the effects of the product, potential benefits, how to use the product, dosage information, and even take the time to show them various products that will meet their needs. By catering to this need, consumers will be more inclined to go to retailers that have built trust.
9. Focus on Quality and Safety: As the industry matures, there will be an increased demand for a focus on quality and consumer safety, not just eye-catching packaging. Consumers want to trust the brands and businesses they buy from and ensure they consume reputable products. Safer buying options, such as going to a dispensary in the legal market, have made going to a dealer a thing of the past.
10. Personalized Cannabis Experiences: Consumers expect a personalized experience when entering a cannabis business. Owners need to provide an educational period about the offerings available and have the consumer in mind when helping them choose products. Consumers want to feel that the brands resonate with them versus receiving a sales pitch. This includes having a wide variety of products that will cater to the needs of different consumers, such as different price points, uniqueness, tailor-made options, and a brand story that shows authenticity and a lasting impression.

Understanding the future of the cannabis industry is crucial for keeping your business prepared for what’s to come and staying ahead of consumer preferences. Each year, the industry experiences an evolution, and as we look toward 2024, we can anticipate the widespread acceptance of cannabis and the emergence of new opportunities for entrepreneurs and businesses.

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