Looking Ahead: What’s in Store for Cannabis in 2024? – Part 3

You can read part 1 of our Looking Ahead series here. 

Bryan Gerber – Founder & CEO, HARA Supply

In preparation for 2024, cannabis operators are seeking to further cut costs and prioritize efficiency across the supply chain. We expect to see a cost-conscious evolution in the sector, marking a strategic response to market demands for affordability and sustainability, where practicality meets innovation.

With this in mind, manufacturers will need to meet these demands while differentiating themselves from competitors to position themselves as preferred industry vendors.

For example, Hara Supply is able to cut costs on cones, combustibles and related packaging for the industry’s largest retailers, CPG brands and MSOs by leveraging our domestic and global facilities and strong partnerships, all while speeding up delivery times and improving product quality and customization to offer unparalleled customer experience.

Paul Weaver, Head of Cannabis, Boston Beer Co.

As the newest generation of drinkers reevaluate their relationship with alcohol, the popularity of cannabis beverages are an enticing alternative.

The success of TeaPot, our line of THC-infused iced teas, highlights this emerging demand and we can’t wait to see how the category grows.

Whether it’s a marijuana-derived beverage sold in a dispensary or a hemp-derived beverage sold in a liquor store, cannabis drinks are challenging the status quo, have a growing fanbase, and represent the future of adult consumption.

Ed Schmults, CEO, StateHouse Holdings

CA continues to be a challenging environment to operate within. We are seeing some submarkets begin the licensing process to allow Cannabis operators a path to licensure. This should provide some nominal level of market growth for the state over the coming year.

The more mature markets, however, are continuing to deal with added pressures to issue additional licenses within their jurisdictions, effectively splitting market share between a larger number of operators and bringing revenues down to potentially unsustainable levels. The mature markets are expected to continue to become more saturated for the foreseeable future.

Taxation is still a disaster in CA. A material number of operators are flat out not paying taxes while others are taking advantage of theoretical tax loopholes as the CDTFA works to close them. With only a small segment of the market participants current on taxes, it begs the question of when the state will act.

Beginning Jan 1st, Employers in CA will be restricted from taking adverse action against employees or job applicants based on off duty Cannabis use. This new law is much needed protection for Cannabis consumers, and we hope that more states begin to follow suit.

The HHS recommendation to reschedule Cannabis to Schedule 3 was some welcome news, although about a decade late unfortunately.

We are hopeful that the federal government takes the steps necessary in the short term to see this change through, but we are realistic in our expectations on timing for implementation. We see an implementation of 12-18 months as being a bit more reasonable than the 6-month timeline mentioned by some. I’d expect to see some value accrue to top tier CA operators who are publicly listed as an easy bet for retail investors who are keen on the industry.

CA is, and has been, the biggest brand in Cannabis and this regulatory change could be the tipping point for investors who are sitting on the sidelines. Schedule 3 will be a big step in the right direction, though outright de-scheduling is a far cleaner path for the Cannabis industry.

Deborah Saneman, CEO, Würk

In 2024, we hope to see a continuation of the scaling, expansion, and operational efficiency our industry has witnessed this past year. The evolution of new markets, legalization of recreational sales in various states, and adjustments to standing regulations have caused impressive growth industry-wide.

Already servicing the majority of key businesses in the industry, Wurk has strategically streamlined business operations to prepare for continued success and look to broaden our offerings for our clients. We couldn’t be more excited to see what 2024 offers.

Robert Sindelar, Chief Product Officer, OOKA x seven9

As the industry continues to grow in legitimacy, we’re seeing more traditional designers, engineers and artists bring their talent into the space.

In 2024, we’ll start to see more high-design cannabis products serving a dual purpose of function and beauty, further disintegrating the psychological barriers that have historically forced people to tuck their goods in a drawer.

Vince Ning, Co-founder and Co-CEO of Nabis

Eventually, but it will take some time for it to be properly and effectively adopted. There is potential for AI to help optimize cultivation by monitoring environmental conditions to maximize growth and yield.

AI could also recommend certain strains by analyzing their chemical composition and then recommend specific strains to users based on preference or medical needs. Obviously, research and development, along with forecasting trends and predictions, could benefit from AI’s infiltration into cannabis.

Angus Rittenburg, COO/CTO of WHBCo

Innovation has always been a driving force for Wherehouse Beverage Co as we continually strive to find creative solutions to navigate the challenges posed by federal prohibition. This includes developing novel production technologies that scale despite interstate commerce being illegal.

With regard to the cannabis industry as a whole, Federal prohibition has made it extremely difficult for businesses to fund product R&D and business operations through traditional means. I expect the rescheduling of cannabis as a Class III substance will signal a more mainstream future for THC and bring a new wave of talent and funding to the table.

As that shift takes place, we’ll see an increasingly competitive marketplace where companies will have to invest heavily in innovation and improve upon both product and process to survive. The end result is a better marketplace for the consumer, with a wide selection of high quality products.