The cannabis industry continues to evolve, with recent market movements, regulatory changes, and shifts in consumer behavior shaping its current state. As of 2024, the global cannabis market is projected to reach approximately $38.19 billion and is expected to grow at a CAGR of 14.6% between 2024 and 2028[2].

In the United States, combined medical and recreational cannabis sales are estimated to reach $38.4 billion by the end of 2024, driven by the opening of new adult-use markets[3]. Eleven states are on pace to top the $1-billion benchmark in total retail sales at licensed cannabis dispensaries in 2024, including medical-only markets like Florida and Pennsylvania[1].

Recent market movements have seen significant price declines, with average retail cannabis prices dropping by 32% since 2021[4]. This price compression has impacted cannabis brands and retailers, squeezing profit margins and forcing dispensaries to combat the effects of marijuana price compression. However, some states like Michigan have seen an all-time low in adult-use flower prices, hitting $79.70 per ounce in July 2024[1].

Regulatory changes have also been significant, with the US Department of Justice reclassifying cannabis as a less harmful Schedule III drug, indicating the industry's proliferation[2]. However, marijuana remains federally outlawed, limiting intellectual property protections for marijuana businesses.

Consumer behavior has shifted, with half of Americans having tried cannabis and 79% living in a county with at least one dispensary[4]. Support for legalizing cannabis has hit a record 70%, and the industry supports 440,445 full-time equivalent jobs, representing a 5.4% year-over-year increase[4].

Industry leaders are responding to current challenges by focusing on cashless payments, which improve dispensary performance. Flowhub data found that dispensaries accepting debit cards earned an average of $4,627 more per day than cash-only retailers[4].

New York's cannabis market is particularly noteworthy, with annual sales projected to top $6 billion by 2027, according to Whitney Economics[5]. However, the state must effectively tackle the prevalence of illicit cannabis retailers and manage the expansion of legal dispensaries to prevent market crashes.

In comparison to the previous reporting period, the cannabis industry has seen continued growth, albeit at slower rates in established markets. Emerging markets like Arizona, Illinois, and Maine have shown promising signs, while states like California and Colorado have suffered price collapses due to oversaturation of cultivation and retail licenses[1][5].

Overall, the cannabis industry remains dynamic, with ongoing regulatory changes, shifts in consumer behavior, and market disruptions shaping its current state. Industry leaders must adapt to these challenges to ensure sustained growth and profitability.