Cannabis is becoming increasingly mainstream in North America.
However, federal legalization remains elusive, creating questions for investors watching the space.
Meanwhile, in Canada, companies are looking to the government for stronger support.
Here the Investing News Network examines the key trends that shaped North America’s cannabis industry in 2024.
Heading into 2025, the outlook for US cannabis reform remains uncertain, particularly when it comes to the timing and likelihood of rescheduling. The process is now not expected to be finalized until late 2025.
The changes include simplifying licensing, production and security clearance requirements, increasing production limits for “micro-cultivators” and making it easier for licensees to submit required reports to Health Canada.
While cannabis rescheduling stalled in the US, state markets saw more movement.
Kentucky’s cannabis market also saw developments in 2024 with the legalization of medical cannabis and the establishment of a regulatory framework for cultivation and distribution.
2024 tested the resilience of cannabis companies and investors.
Canopy Growth’s international business delivered an especially strong performance in Q2, with a 12 percent year-on-year increase in revenue growth, driven by markets in Poland and Germany. In particular, its Storz & Bickel vaporizer brand saw a significant boost of 32 percent thanks to regulatory changes in Germany and increased US sales.
Strategic partnerships with EU-based cultivators helped the company establish a foothold in Europe.
The US cannabis industry is navigating a complex landscape of opportunities and challenges. While market expansion and increased mainstream acceptance drive growth, regulatory hurdles and financial pressures persist.
As the industry matures, companies that can adapt to changing regulations, demonstrate profitability and meet evolving consumer demands are likely to emerge as leaders in this dynamic market.
While the Canadian cannabis market has progressed further, work remains if it is to fully flourish.
Overall, the future of the cannabis industry will depend on ongoing legal reforms, technological advancements and consumer trends, making it a sector to watch closely in the coming years.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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