The cannabis industry is projected to contribute $112.4 billion to the US economy in 2024. This figure underscores the ongoing growth of cannabis usage and its impact on the market.
This blog gives you all-out access to the latest cannabis industry statistics, opportunities to watch out for, predictions, the changing attitude toward cannabis legalization, and more, helping you get a clearer focus on what the cannabis industry has evolved into.
Significant Cannabis Industry Trends (2024): Key Findings
As we close the second fiscal quarter of 2024, here are some game-changing events and key trends in the cannabis industry. Let’s recap:
- There are now more regular cannabis users than daily alcoholic drinkers.
- Vermont has the highest cannabis consumption rate at the state level, with 34.37%.
- Nine out of ten Americans support the legalization of both medical and recreational marijuana.
- The cannabis industry will make approximately $42.98 billion in total revenue for 2024.
- Cannabis-infused beverages are getting more popular, with flowers still the undisputed for the most consumed form of weed.
- Cashless payments help dispensary owners earn an extra $4,627 a day.
Now, let’s zoom in on all the cannabis trends and developments to help you align your business strategies for the coming months.
Cannabis Usage
This section explores the prevalence of cannabis consumption in what aspect of society and other subjects that concern cannabis usage across the United States.
- Daily cannabis users now exceed daily or near-daily alcohol drinkers. (Science Daily)
- Seventeen percent of Americans smoke marijuana. (Gallup)
- Those aged 18 to 34 years old are the major consumers of smokable marijuana, constituting 26% of the total smokers. (Marijuana Moment)
- Men (19%) are more likely to use marijuana than women (14%).
- Democrats (22%) are more likely to smoke cannabis than Republicans (12%). (Cannabis Business Times)
- Nongraduates (21%) are more likely to consume cannabis than college graduates (9%).
The growing normalization of consuming cannabis in the US has brought some significant shifts in consumerism, as exemplified by the increasing number of cannabis users over alcoholic drinkers. Additionally, marijuana smokers in America are also relatively young, implying the open accessibility of cannabis products to millennials.
Men are more likely to be marijuana users with a political affiliation to Democrats. Nongraduates are also a segment of society with high cannabis usage rates.
2024 Cannabis Consumption by States
At this point, cannabis consumption prevalence and sales are looked at through the lens of states.
- The top three states with the highest cannabis consumption rates are Vermont (34.37%), the District of Columbia (33.44%), and Oregon (32.8%). (Statista)
- California ranked the highest in recreational cannabis sales, reaching 5.3 billion US dollars in 2023. (Statista)
- Maryland has the highest monthly medical marijuana sales at 41 million US dollars. (MJBiz Daily)
- Arizona is poised to be the fastest-growing cannabis market from 2021 to 2026, expanding 580%. (Statista)
These particular cannabis industry data reveal that Vermont, the District of Columbia, and Oregon are powerhouse states when it comes to high cannabis consumption rates. Meanwhile, California has been steadily enjoying high recreational sales, highlighting the state’s diverse cannabis product selection and vast consumer base.
In terms of medical cannabis, Maryland’s demand has skyrocketed over the years, amassing $41 million in monthly sales. California may have finally found a rival to Arizona, quickly emerging as an expanding cannabis state market.
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Cannabis Legality and Acceptance Rate
Legalizing weed in any form has been an ongoing popular sentiment in the nation. Let’s look at what comprises this sentiment through numbers.
- Nine in ten Americans agree to legalize weed for medical and recreational use. (Forbes)
- The majority, or 42% of Americans, say legalizing cannabis for medical and adult-use purposes makes the criminal justice fairer. (Pew Research Center)
- Twenty-four states, including the District of Columbia and Guam, have legalized adult-use cannabis. (MJBiz Daily)
- Forty states, including Washington D.C., have now legalized medical weed.
- Five more states are eyeing legalizing recreational cannabis in 2024. (Marijuana Moment)
- Four more states are leaning toward medical cannabis reform in 2024.
The majority of Americans stay supportive of legalizing cannabis for both recreational and medical use. They believe legalizing cannabis embodies a fairer justice system. Legislatively, more and more states are considering legalizing either medical adult-use weed in their jurisdiction.
Market Opportunity
The cannabis market is all about change except for profitability, which shows no sign of plateauing anytime soon.
- The cannabis industry is projected to make a dent in the US economy, contributing $112.4 billion this year. (MJBiz Daily)
- According to projections, the cannabis industry will make a total revenue of around $42.98 billion in 2024. (Statista)
- Medical cannabis sales are expected to reach $14 billion by 2028. (MjBiz Daily)
- Recreational cannabis sales, from $19.3 billion in 2022, are projected to hit $42.8 billion by 2028. (MjBiz Daily)
- The US is experiencing an influx of new cannabis customers of approximately 4% per year. (Forbes)
The cannabis industry’s impact on the US economy speaks volumes about its profitability. With a projected revenue of $42.98 billion in 2024, it’ll be hard not to consider cannabis as one of the business opportunities to explore this year.
Weed Prices 2024
The cannabis industry is experiencing a price compression where the prices are dropping yearly, contributing to tightening competitiveness.
- BDSA found that the average cannabis retail price dropped -32%. (BDSA)
- New Orleans has the highest price per gram of marijuana at $100, while Los Angeles, California, has the lowest at $2.6 per gram. (Statista)
- Only Alaska, Missouri, and Oregon have experienced significant wholesale cannabis flower price increases of 7%, 20%, and 6%, respectively.
The US cannabis market is facing a price compression this year, as demonstrated by BDSA’s report of average cannabis retail price dropping 32%. This dip in item prices results from the fierce competition between dispensaries and the increasing local market saturation.
One of the glaring aspects of US cannabis pricing is the wide disparity of prices between cities like New Orleans and Los Angeles. Factors like state regulations, tax rates, and the efficiency of supply chains all contribute to price variations. Despite the persisting theme of declining cannabis prices, wholesale cannabis prices continue to rise in the following states: Alaska, Missouri, and Oregon.
Cannabis Product Trends
The enumeration below of the highest-selling cannabis product types this year will help you determine what consumers want to buy in 2024.
- Cannabis-infused beverages are getting trendy year over year, with a growth of 45% per year. (Headset)
- Stepping into 2024, the cannabis market is witnessing a blossoming demand for craft cannabis.
- The evolving consumer landscape is witnessing a shift towards more discreet and health-conscious ways of consumption.
- Flower is still the most popular form of cannabis product (like in prior years), constituting 40% of retail and 34% of wholesale sales. (LeafLink)
- The second most popular cannabis forms are cartridges (25%), pre-rolls (13%), edibles (11%), and concentrates (11%). (LeafLink)
With cannabis stealing the focus from alcoholic beverages, cannabis-infused beverages are getting more and more popular, with an annual growth of 45%. This just shows that consumers are now proactively exploring healthier alternatives to alcohol and cigarette smoking.
Despite the emerging trends of innovative cannabis products, flowers remain the undisputed cannabis product. This underlines the preference of cannabis consumers for the traditional way of consuming weed.
Cannabis Shopping Habits
Customers are spending more of their time online than in physical stores researching products prior to buying.
- Cashless payments, such as debit card payments, help dispensary owners earn an extra $4,627 on average per day than those who offer “cash only” payments. (Flowhub)
- Millennials remain a large part of cannabis consumers, capturing 46% of each dollar spent on cannabis. (Headset)
- 42% of dispensary customers are spending time on the internet researching products and stores before buying in a nearby physical cannabis shop. (BDSA)
Millennials, who are a major influence on the increasing cannabis consumption culture, are more inclined towards cashless payments and spending more time online rather than in physical dispensaries.
Inclining to cater to younger generations without neglecting the rest of the age groups will significantly boost profits. Installing cashless payment systems and investing in creating a webpage for your dispensary should be part of your dispensary’s strategies.
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Cannabis Industry Wholesale Insights
Get insights on what’s happening at the cannabis wholesale level.
- Wholesale cannabis prices are increasing at about 5% year over year across 13 states. (LeafLink)
- The US National Sales Growth of Wholesale Cannabis is expected to reach $11.2 billion with an 18% year-over-year growth. (LeafLink)
- March remains the peak month of wholesale cannabis sales in preparation for the 420 promo season and sales.
Cannabis wholesale prices are still on the rise, indicating a steady demand for cannabis products at wholesale prices. The increasing total revenue of cannabis products seems to pull the wholesale cannabis industry, as reflected by its 18% year-over-year sales increase.
Seasonal periods such as 420 events remain peak times for purchasing wholesale cannabis. These high-demand seasonal sale spikes are optimal for cannabis businesses to offer promotions and showcase their products online.
2024 Dispensary Statistics
If you’re part of the dispensary community, here are the numbers you’re part of.
- The 2024 average dispensary store owner’s income stands at $250,000 and $500,000 per year (MjBiz Daily)
- Active dispensary licenses declined by 10% from the first quarter of 2023. (MjBiz Daily)
- There are now 15,000 dispensaries nationwide, with the most saturation on the West Coast and Northeast. (Pew Research)
- California is the leading state with the most active dispensaries—3,659. (Pew Research)
The average dispensary store owner’s annual income is between $250,000 and $500,000. However, despite this attractive potential revenue, active dispensary licenses have declined by 10% since the first quarter of 2023. Several factors can be at play here, such as the industry’s increasing competitiveness and strict licensing regulations per state.
Among the 15,000 dispensaries operating in the US, California leads the pack with 3,659 dispensaries scattered across its cities.
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Cannabis Industry Predictions
Brace yourself for the possible big events in the cannabis industry ahead and beyond 2024.
- The majority of industry leaders agree that the DEA will accept rescheduling cannabis into category “3.” (Forbes)
- Ohio’s cannabis market will make history as the state is nearing adult-use legalization. (Cannabis Business Times)
- New York will have a breakthrough this year as it’s finally starting momentum in issuing dispensary licenses. (Governor Kathy Hochul)
- Hemp-derived cannabinoids and their products will continue to thrive in the market share.
Some of the most likely predictions with a high chance of happening are the acceptance of several concerning agencies with the de-scheduling of cannabis to schedule 3. This move marks the acknowledgment of government agencies that the plant has its medical merits and lower proclivity to substance abuse.
Ohio’s inclination towards legalizing adult-use cannabis and New York’s baby steps towards forming a licensing system highlight the continuing cannabis market expansion in some of the US’s pillar states.
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Meanwhile, as long as the country has hesitations to legalize marijuana in all aspects completely, hemp-derived cannabinoids and its products will continue to flourish.
Wrapping Up
As we edge closer to 2024, the cannabis industry is lighting up with fresh trends, groundbreaking innovations, and a green wave of legalization efforts. From cannabis-infused beverages to cannabis de-scheduling, this evolving landscape is once again challenging norms.
Speaking of groundbreaking innovations, The Hemp Doctor Wholesale is open to partnering with businesses interested in creating high-quality, customized hemp products. Our white-label program is designed to cater to your brand’s specific vision and requirements.
Contact us. We’d like to hear more about your wild imagination!
FAQs
What is the cannabis market trend in 2024?
Some of the cannabis market trends to look out for in 2024 are the prevalence of cannabis-infused beverages and inhalation products and the rising preference for healthier alternatives to smoking and drinking alcohol.
What is the future of the cannabis market?
Industry participants are looking forward to the possible de-scheduling of cannabis from schedule 1 to 3. There will be more ease to cannabis research, loosening of statutes, and further exploration of emerging products.
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