Why This Is a Prime Time to Invest
Tough markets often create the best investment opportunities. As Warren Buffett famously said, “Be fearful when others are greedy and greedy when others are fearful.” Right now, fear dominates the cannabis market, making it an ideal time for smart investors. If federal reforms like SAFE Banking or rescheduling regain momentum, they could open the door for larger institutional investors, creating even more growth potential.
Positive Trends Driving Growth
- Expanding Legalization – More states are allowing medical and recreational cannabis, and the U.S. market grew by $2.6 billion in 2024, reaching $31.4 billion. Growth is expected to continue in 2025.
- Government Policy Changes – Bipartisan support for cannabis reform is increasing. Potential changes, such as rescheduling cannabis to a lower drug classification, could reduce taxes on businesses, making them more profitable. The DEA’s rescheduling hearing has been postponed but we expect talks to continue and finish this year.
- Cultural Acceptance – A Pew Research survey found that 88% of Americans support legal cannabis, showing a strong shift in public opinion.
Looking Ahead
While the past few years have been rough for the cannabis industry, the current moment presents a rare opportunity. With more states legalizing, supportive government policies gaining traction, and stronger businesses emerging, 2025 is shaping up to be a key turning point. Investing now isn’t just about making money—it’s about being part of an industry that’s set to thrive in the years to come.
Cannabis Market Predictions for 2025
Retailers Are Getting Smarter About Inventory
Selling cannabis isn’t always as profitable as it seems—retail margins are tight, so businesses need to be strategic. Instead of just stocking shelves based on relationships with suppliers, cannabis stores are now using data to figure out what sells best at each location.
HelloDank provides users with data insights to make running your cannabis business better.
- Stores will hire experts to manage inventory, pricing, and product selection.
- More businesses will use tools like HelloDank to track sales and stock more efficiently.
- Companies will bring in data analysts and sales-focused managers to make smarter buying decisions.
The key to staying profitable will be buying the right products at the right price and avoiding wasted inventory.
Production is Becoming Leaner and More Efficient
Growing great cannabis isn’t enough anymore—businesses need to operate efficiently to stay competitive.
- Companies will rely more on digital tools to better predict supply and demand.
- More businesses will invest in technology to improve operations.
- Production leaders will streamline manufacturing to reduce waste and improve profits.
The cannabis industry is starting to operate more like traditional consumer packaged goods (CPG) companies, where efficiency and cost-cutting are just as important as quality.
Companies Are Hiring More Top-Level Executives
In 2024, we saw a rise in demand for CEOs, presidents, and senior executives to lead cannabis businesses. After a period of instability, companies are now looking for experienced leaders to take charge of operations and finance.
- Businesses will bring in new leadership to improve execution and strategy.
- Some executives will shift roles as companies restructure.
- Many new hires may come from outside the cannabis industry—leadership experience is now more important than cannabis-specific knowledge.
This hiring wave isn’t just good for individual companies—it will help professionalize the entire cannabis industry and push it to the next level.
Marijuana Reclassification (Schedule 3) is Coming
The U.S. government is considering moving marijuana to Schedule 3, a lower classification under federal law. While the hearing scheduled for January has been postponed, we believe a decision should happen sometime in 2025, but it could still face court challenges or delays.
If it happens, this change could significantly reduce tax burdens on cannabis businesses, making them more profitable.
Tougher Regulations for Hemp-Derived THC
While Congress hasn’t addressed cannabis laws much, states are cracking down on hemp-derived THC products (like Delta-8).
- California banned intoxicating hemp products, and other states like Texas and Tennessee are following suit.
- A new Farm Bill might introduce nationwide regulations on hemp-derived THC, but that could take time.
The Bottom Line
- Retailers need to get smarter about what they stock and how they price products.
- Producers must cut costs and run their businesses more efficiently.
- Top executive roles are opening up as companies seek stronger leadership.
- Marijuana rescheduling is coming, but it’s not guaranteed to be smooth.
- Hemp-derived THC products may face more restrictions, adding uncertainty to the market as a whole, but potentially boosting medical and recreational cannabis markets.