As the New Year approaches, it is now a good time to look ahead to the trend of the legal cannabis market in the United States in 2024. 

The following are the eight major predictions for the US cannabis market in 2024:
1. The continuous expansion of the cannabis market means that the medical and adult cannabis markets continue to grow
Although the US federal government still prohibits high THC marijuana, new states are constantly promoting the legalization of marijuana and regulating and taxing this market. In the eyes of many people, the regulatory differences between alcohol and marijuana are absurd, and the legal marijuana industry can also generate tax revenue. Whether in Red State, Blue State, or Purple State, or in the east, west, north, south, north, or south, the expansion of the cannabis market is a nationwide phenomenon.
2. The re regulation of marijuana is a trend, which will lead to the abolition of the 280E tax provision and the equalization of tax burden for marijuana companies
In August of this year, the US Department of Health and Human Services (HHS) proposed to downgrade the classification of marijuana from Category 1 under the Controlled Substances Act to Category 3, and the US Drug Enforcement Agency is likely to follow this suggestion. In addition, if the 280E tax provision is abolished, marijuana companies will be allowed to deduct sales, general, and administrative expenses before tax, just like other companies, which will significantly improve the profits and financial performance of marijuana operators, and thus gain positive feedback in the stock market.
3. SAFE, SAFE, or SAFE cannabis bank reforms will not occur
The presidential election year has never been friendly to federal marijuana laws or reforms, and the 2024 election year is no exception.
4. Mature and new marijuana legalization state's marijuana prices are "ice and fire"
Like all other industries, cannabis follows the same supply and demand pattern. In states where cannabis cultivation and sales have been legalized for a long time, cannabis prices are under pressure due to the large number of suppliers. In contrast, in markets such as Maryland, New Jersey, and New York that have just legalized marijuana, growers may initially charge over $3000 per pound of marijuana, but as these markets mature, prices will undoubtedly begin to decline. To continue to survive in this market, it is necessary for the entire industry to improve efficiency through automation.
5. The cannabis market will become more segmented
As the cannabis industry matures, the number of consumer segments will surge. At present, over 50% of marijuana consumers are women, and nearly 60% are married and have children, which is different from the impression that many people have of marijuana consumers as "hippies and hip-hop". Therefore, cannabis companies should also adjust their business strategies, in addition to strong products, they should also launch some light cannabis products.
6. The eastern cannabis market will experience rapid growth
The East Coast market and even the Midwest market in the United States will continue to experience high growth, repeating the market development process that Western states have already experienced. The wholesale price of cannabis initially reached as high as $2500-3000 per pound, and as more participants enter this market, the price will accelerate its decline. In addition, similar to the West, the illegal cannabis market will also become a cancer in the Eastern cannabis market. New York State is currently flooded with a large number of marijuana shops, and the previously legalized state of medical marijuana, Florida, will also grow into a huge adult marijuana market.
7. The growth of marijuana consumption bar
The continued growth in the number of marijuana consumption venues will boost the use of various forms of marijuana in public places, with Las Vegas leading the way in this regard. Whether it's marijuana, marijuana food, or marijuana beverages, the marijuana leisure industry will explore various business models and develop a clearer marijuana culture.
8. The problem of difficult financing for marijuana still needs to be solved
Even if the 280E clause is cancelled, the financing difficulties in the cannabis industry - whether it is equity financing or debt financing - will still limit the development of the industry. Next year is an election year, coupled with severe congressional divisions in the United States, the full legalization of marijuana at the federal level will still stagnate. Even if obtaining bank loans, sustained high interest rates will increase the financial costs of marijuana companies.
At a time when the cannabis industry in Europe and America has entered a period of sluggish growth, the focus has shifted to the Asian market. Medical marijuana in Thailand and Japan has become legal, while South Korea, Malaysia, and the Philippines are also in the research and legislative stage. Asia has become the forefront of global cannabis legal reform. The Asian Cannabis Business Summit will be held from May 8th to 9th, 2024 in Bangkok, Thailand, by politicians and business leaders from multiple Asian countries and global industry elites.