Blog · Jan 7, 2024

2024 and the Weed Industry

Matt Lotze

Best Buds

The cannabis industry in Denver, and more broadly in Colorado, is undergoing significant changes and facing various challenges as we head into 2024. Here are some key topics and trends that are shaping the industry:

1. Federal and International Reforms: There's a possibility of cannabis being rescheduled to Schedule III at the federal level, which could lead to a surge in mergers and acquisitions, as well as increased liquidity in the industry. This change is expected to benefit not just plant-touching businesses but also ancillary service providers like accounting and law firms, and cannabis software platforms. Additionally, Germany is moving towards legalizing cannabis, potentially becoming the largest market for adult cannabis​​.
2. The "Great Correction" and Market Equilibrium: The cannabis industry is expected to find a new direction after what's been termed the "Great Correction". This phase follows a period of high growth and oversizing, leading to a need for businesses to become more efficient and leaner. The correction phase involves adjusting to the reality that cannabis is not "recession-proof" and could lead to a lot of mergers and acquisitions as the industry finds a new equilibrium​​.
3. Focus on Hemp-Derived Cannabinoids: Hemp-derived cannabinoids (HDCs) like Delta-8, Delta-10, and even Delta-9, which have been legal even in states banning THC products, are gaining momentum. These products are becoming more mainstream, available in spaces like microbreweries and supermarkets, and are contributing to shifting perceptions and reducing the stigma around cannabis​​.
4. Cannabis-Infused Beverages: Colorado's cannabis industry, which experienced an 11.5% drop in sales in 2023, is expected to rebound in the second half of 2024. Part of this rebound involves the growing segment of cannabis-infused beverages. These products have been slow to take off in Colorado compared to other states, but advancements in infusion technology and changes in consumer preferences are expected to boost their popularity​​.
5. Introduction of Use-By Dates: Starting January 1, 2024, all Colorado marijuana products must include use-by dates on their retail packaging. These dates, meant to indicate product freshness rather than expiration, must be within nine months of packaging unless proven otherwise by shelf-stability tests​​.
6. Diversification Challenges: Denver's cannabis industry is facing challenges in diversifying its market. Efforts are being made to include a wider range of participants and stakeholders in the industry, which is crucial for its sustainable growth and development​​.

These trends indicate a period of adjustment and growth for the Denver cannabis industry, with potential federal reforms, market corrections, and new product segments shaping its future.

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Filed under: Best Buds, Cannabis news, cannabis schedule 3, Marijuana legalization, Recreational Cannabis