The legal cannabis industry has seen monumental growth over the last decade. As more states legalize both medical and recreational cannabis, the market is projected to expand rapidly in the coming years. The year 2024 is a pivotal milestone for the industry. Here are some of the top cannabis market trends to keep an eye on.
Continued Legalization Efforts
The biggest cannabis news in 2023 was the passage of the Cannabis Administration and Opportunity Act, which legalized cannabis at the federal level in the US. With federal legalization in place, we expect to see even more states move to legalize medical and adult-use cannabis in 2024. Key states expected to introduce legalization bills include Florida, Minnesota, Delaware, and Wyoming.
As more states open legal markets, the total addressable market for legal cannabis will balloon. Some projections suggest the total legal US cannabis market could exceed $40 billion by 2024.As the cannabis industry rockets towards new heights, partnering with a seasoned cannabis SEO agency ensures your cannabis brand stays ahead of the pack.
Rise of Cannabis Cafes/Lounges
Now that cannabis is federally legal, there has been growing interest around cannabis cafes and lounges. These social establishments would allow legal consumption of cannabis products in a cafe or bar-like setting. Cities like Denver, Oakland, and West Hollywood have already opened cannabis lounges.
With federal guidelines still being drafted, we expect cannabis lounges to remain at the local level in 2024. However, some analysts predict there could be up to 1,000 US cannabis lounges open within five years. Locations featuring consumption lounges could become a big draw for cannabis tourism moving forward.
Continued Consolidation
The cannabis industry has seen rapid consolidation over the last few years with several major mergers and acquisitions. As the market matures, scale and distribution become competitive advantages. This trend is expected to accelerate in 2024.
Some potential big cannabis acquisitions on the horizon include deals with large consumer packaged goods companies and tobacco/alcohol conglomerates moving into the cannabis sector. These types of mergers would bring institutional capital and expertise into the still nascent legal cannabis industry.
Increased Celebrity/Athlete Involvement
As cannabis sheds more of its stigma, we expect to see more celebrities and athletes get involved in the legal cannabis industry in 2024. There is still huge potential to use star power to raise brand awareness and connect with core demographics.
Recent examples include Jay-Z’s Monogram cannabis brand, Seth Rogen’s Houseplant, and Shawn Kemp’s cannabis farm. With sentiment towards cannabis changing, look for more high-profile cannabis brands backed by household names next year.
Rise of Cannabis Home Grow
Home cultivation of cannabis was legalized under the 2023 federal bill. While laws around personal grows will be set at the state level, more consumers are expected to explore growing cannabis at home in legal states.
This will drive demand for home grow equipment and supplies in 2024. From lamps and ventilation systems to seeds/clones and nutrients, supporting products will see a boost as more consumers look to self-supply. States with the friendliest home grow laws, like California, could see up to 25% of consumers growing cannabis at home within five years per some estimates.
Continued Cannabis Investor Excitement
Investor interest in the legal cannabis industry escalated rapidly in 2023 after federal legalization. With analysts projecting compound annual growth rates over 25% for the foreseeable future, cannabis stocks will remain compelling plays in 2024.
Many of the multi-state operators and leading brands are now traded on major exchanges like the NYSE and Nasdaq. These stocks offer exposure and access to a high-growth sector that remains in the early innings of maturity compared to other CPG categories.
2024 is shaping up to be the biggest year yet for the legal cannabis industry. As more states open markets and the federal landscape clarifies, cannabis companies will have expanded opportunities with less risk and constraints. As the cannabis industry continues its meteoric growth, having an experienced Cannabis SEO Agency on your side ensures your brand won't get left behind the green rush. Let the experts at Top IT Cannabis customize an SEO and digital marketing strategy scaled for success in the cannabis space. Visit https://www.topitcannabis.com/today to schedule your free consultation and unlock the online growth potential of your cannabis business. Partner with a cannabis marketing leader and blaze your path to the top. It’s an exciting and evolving time in the growing green rush. Stay tuned to all the latest developments!
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