This creates a complex legal landscape that can be adjusting entries difficult for businesses to navigate, increasing the risk of compliance issues and subsequent litigation. According to Sentieo, Cresco Labs is expected to increase revenue 5% sequentially and 290% from a year ago to $161 million. Trulieve revenue is expected to increase 19% sequentially to $162 million, which would represent 103% growth from a year ago. Harvest is expected to have generated $67 million revenue in Q4, representing 76% annual growth and an 8% gain from Q3. Analysts had expected GrowGeneration Q4 revenue to be $57 million, but they now expect it to be $61 million following the company’s pre-announcement in January. Greenlane revenue is projected to have reached $36.6 million in Q4, a decline of 2% from a year ago.
- The U.S. cannabis industry faces five major hurdles holding back its growth, even as sales are projected to reach a record $50 billion or more in 2025.
- Cronos GrowCo expects to finish construction of the expanded cultivation and processing facilities in Q2 2025, with first harvests and sales from the area commencing in the second half of 2025.
- Canada, Thailand, Uruguay, and several states in the U.S. are among those that have legalized recreational marijuana, creating a significant market for marijuana products and paving the way for further legalization efforts in other regions.
- The survey revealed that 77% of cannabis businesses anticipated year-over-year-sales growth.
More Banking Access Will Allow Cannabis Companies to
Growing acceptance of its use for medical purposes and the rising legalization of cannabis are the key factors driving the market growth. The increasing research activities on the use of cannabis and its medicinal properties have led to its increased cannabis accounting use to treat various chronic conditions. Adjusted gross margin before fair value adjustments1 on consumer cannabis net revenue1 was 26%, decreasing from 29% compared to the prior year quarter. The decrease from the prior year comparative quarter is primarily due to product sales with lower margins relative to the same period in the prior year.
Millennials capture nearly half of every dollar spent on Cannabis in the US
- The adjusted gross margins before fair value adjustments improved through sustainable cost reductions, higher selling prices, and improved efficiency in production operations, including sourcing for Europe from Canada.
- Despite its history of being a cash-based industry, cannabis consumers still want to pay with cards.
- In May 2019, we added an additional metric, “Adjusted Operating Income”, as we detailed in our newsletter.
- Too often, businesses rush into lawsuits without evaluating whether the case is truly worth pursuing.
- As a result, this data may not be comparable to data presented by other licensed producers of cannabis and cannabis companies.
Such initiatives are projected to boost the market growth over the forecast period. Aurora is opening the world to cannabis, serving both the medical and consumer markets across Canada, Europe, Australia and South America. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company’s adult-use brand portfolio includes Drift, San Rafael ’71, Daily Special, Tasty’s, Being and Greybeard. Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co., as well as international brands, Pedanios, Bidiol, IndiMed and CraftPlant. Aurora also has a controlling interest in Bevo Farms Ltd., North America’s leading supplier of propagated agricultural plants.
- These claims may allege defects in the product itself, improper labeling, or inadequate warnings.
- A positive attitude of consumers towards the consumption of cannabinoid (CBD) based products has led to the increased penetration of cannabis.
- The cannabis industry, while booming, remains a complex and highly regulated landscape.
- As a checked-out president sits back and lets Elon Musk shred the civil service, the signs of economic calamity are growing—and Americans of all stripes are getting pissed off.
- Keep track of the publicly-traded cannabis market by watching the NCV Indices, which includes the Global Cannabis Stock Index since 2013, the American Cannabis Operator Index, the Ancillary Cannabis Index, and the Canadian Cannabis LP Index.
Thoughts on the Terrible Pageant of Marijuana Rescheduling
Marijuana regulations, laws, sentiment, technology and business practices evolve each year—meaning there’s a long list of new data and insights to unpack. High nutritional value and beneficial fatty acid & protein profiles drive the demand for hemp products. Foods fortified with CBD derived from hemp cover an extensive range of products, including nutritional powders, supplements, protein & nutrition bars, beverages, breakfast cereals, dairy & dairy alternative products, bakery items & snacks, animal feed, and pet food. Improving lifestyle and increasing awareness regarding the health benefits of CBD are among the factors propelling the demand for CBD-infused food products. Hemp-based CBD oil is a source for pet food products due to its wide range of health benefits, such as reduced pain & inflammation, reduced seizures, and improved heart health. Non-recurring items includes one-time Accounting for Churches excise tax refunds, non-core adjusted wholesale bulk margins, inventory count adjustments resulting from facility shutdowns and inter-site transfers, litigation and non-recurring project costs.
According to Whitney Economics, U.S. adult-use and medical cannabis sales grew $2.6 billion (9.14%) year-over-year, totaling $31.4 billion in 2024. The market is characterized by a medium level of merger and acquisition (M&A) to shape the business landscape. Companies are seeking strategic partnerships and acquisitions to enhance their presence and drive growth in the industry.
Litigation Isn’t Always the Answer—Know When to Fight and When to Walk Away
The U.S. cannabis market is expected to grow at a compound annual growth rate of 12.1% from 2024 to 2030 to reach USD 76.39 billion by 2030. In addition, federal courts are due to rule in 2025 on lawsuits by larger cannabis companies to open up various states to more out-of-state firms. If they prevail, that would essentially open the floodgates for large national companies to enter state markets, potentially forcing out smaller regional firms that will find it hard to compete.
Different Approaches to Growth
Maintenance capital expenditures are comprised of costs to sustain facilities, machinery and equipment in working order to support operations and excludes discretionary investments for revenue growth. While the proposed rescheduling of cannabis could provide some tax and legal relief, the industry will still have to navigate a complicated patchwork of state regulations, limited banking access, and increasing competition. Since legal dispensaries can’t transport products across state lines, operations in each state, even those owned by the same company, must be completely self-contained, driving up costs. In 2024, we introduced two new Spinach® all-in-one vapes, Pineapple Paradise and Blueberry Dynamite that are performing well and helping to drive market share gains. The brand’s 0.5g all-in-one Spinach HITZ™ vapes introduced new Pink Lemonade and Rocket Icicle flavors, alongside line extensions in Spinach® 1.2g vapes. Spinach® vapes were the number four vape brand in Q4 2024, holding 5.9% market share.
