Mid-Year Cannabis Industry Trends: What's Shaping the Market in 2024?

Now that we’ve passed the halfway point of 2024, the cannabis industry’s momentum shows no signs of slowing down. From state-by-state legalization updates to new product trends and changing consumer demographics, the cannabis market is being shaped as we know it. But what factors are influencing the quickly growing cannabis industry? 

This mid-year roundup will explore the key developments and trends affecting the industry in 2024 and explain how they impact businesses and consumers. 

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Understanding Cannabis Consumers: Who’s Buying and What’s Selling?

The cannabis industry is fueled by consumer demand, making it important to understand who the key consumers are and what products they’re gravitating towards. In this section, we’ll analyze trends that are driving demand and shaping the industry’s future. 

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What Age Group Consumes the Most Cannabis?

The age group that consumes the most cannabis is the 18-34 demographic, with 26% of individuals in this range reporting that they smoke marijuana. With only 11% of individuals 55 and over reporting cannabis use, the data suggests that young adults are the primary consumers in today’s market, reflecting their openness to cannabis use. 
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Which Gender Is Most Likely to Consume Cannabis? 

‍Men are more likely to consume cannabis compared to women, with 19% of men reporting use versus 14% of women. Understanding this gender gap can help cannabis companies tailor their product marketing and strategies to better address the preferences and needs of each group. 

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What Socioeconomic Group Consumes the Most Cannabis?

‍Cannabis consumption is higher among lower-income and less educated individuals. Specifically, 16% of those living in households earning under $24,000 and 13% of those with a high school education or less reported using cannabis. On the other hand, cannabis consumption rates drop significantly among those with postgraduate degrees and those from higher-income households, where usage is around 5%. 

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Which U.S. Regions Have the Highest Rate of Regular Cannabis Use?

‍The East North Central division of the Midwest and the New England division of the Northeast have the highest rates of regular cannabis use in the United States. In these areas, 11% of the population consumes cannabis more than 10 days per month. 

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What Modes of Consumption Are the Most Popular? 

‍Pre-rolls seem to be the favorite when it comes to cannabis consumption, with sales increasing by 13.4% in the first eight months of 2023 compared to the previous year. This growth has outpaced other categories like edibles or concentrates. In fact, pre-rolls now make up 15.3% of all dispensary sales, a big leap from 11.5% in January of 2022. It’s no surprise that Gen Z and Millenials, who make up 62.8% of all cannabis sales, are driving this new trend. Additionally, cannabis beverages have also tripled in sales on 4/20/24 compared to the previous year. 

These trends indicate that the young adult demographic leans toward a preference for more convenient and discreet consumption methods. 

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How Many Americans Live in States Where Cannabis is Legal?

According to Pew Research, 54% of Americans live in states where recreational cannabis use is legal and 74% of Americans live in states where cannabis is legal for either recreational or medical purposes. 

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In Which States Is Cannabis Legal in 2024? 

As cannabis legalization sweeps across the nation, the legal market continues to grow. The map below illustrates states where cannabis is legal, whether for medical use only or for both recreational and medical purposes.
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Which States Are Considering Cannabis Legalization in 2024?

Several states are set to make progress on marijuana legalization efforts in 2024. Here’s a look at where the action is:

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• Florida: The state's Supreme Court is reviewing a legal challenge to a 2024 marijuana legalization ballot initiative. If approved, the initiative will require a 60% voter approval to pass.
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• Hawaii: The Hawaii legislature has considered marijuana legalization proposals in recent sessions, and the state attorney general has introduced a comprehensive reform bill.
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• New Hampshire: Despite previous setbacks, cannabis advocates remain hopeful that 2024 will be the year for marijuana legalization in New Hampshire.
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• Pennsylvania: A bipartisan effort is underway to legalize marijuana in Pennsylvania, with support from the governor and some lawmakers.
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• South Dakota: A campaign is underway to collect signatures for a marijuana legalization ballot initiative in South Dakota.

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Latest News From Recently Legalized States 

Over the past couple of years, the U.S. has seen six states legalize recreational cannabis. Let’s take a closer look at the cannabis markets in some of these recently legalized states. 

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How Is Maryland’s Cannabis Market Performing?

Since July 2023, Maryland has seen approximately $1.1 billion in total sales during the first year of legalization. Currently, there are 101 state-approved dispensaries, which provide consumers with convenient access to legal cannabis. The success of Maryland’s cannabis market indicates a growing demand for cannabis in the state. 

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How Is Minnesota’s Cannabis Market Performing?

Minnesota's cannabis market is in its early stages, with the Office of Cannabis Management (OCM) accepting pre-approval applications from social equity applicants starting July 24, 2024. The application deadline is August 12th and applicants will have to go through a vetting process and lottery to obtain a license. The OCM expects to award these licenses by fall of 2024, but dispensaries aren’t expected to open until early 2025. 

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How Is Ohio’s Cannabis Market Performing?

Ohio’s cannabis market is off to a strong start, with legal sales beginning on August 6, 2024. In just the first five days, the state saw over $11.5 million in sales, and this number grew to $22.5 million by the end of the first 11 days. These early numbers indicate high consumer demand and a promising launch for Ohio’s cannabis market. 

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How Is Delaware’s Cannabis Market Performing?

Delaware's cannabis market is gearing up for its launch, with the Office of the Marijuana Commissioner (OMC) opening applications for conversion licenses from August 1st to November 1st this year. These licenses will allow existing medical marijuana providers to sell cannabis to both registered patients and adults over 21. The market is expected to officially launch in March 2025, according to Delaware Marijuana Commissioner Robert Coupe.

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How Many Cannabis Dispensaries Are Currently Operating in the U.S.?

Currently, there are nearly 15,000 cannabis dispensaries in the United States. Let’s break this down even further to identify which state and county are home to the highest number of dispensaries. 
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Which State Has the Most Cannabis Dispensaries?

‍California has the most cannabis dispensaries with approximately 3,659, which is more than double the number found in Oklahoma, the state with the second-highest dispensary count. The Golden State accounts for a quarter of all marijuana dispensaries in the U.S. and almost all Californians – 99.5% to be exact – live in a county with at least one dispensary. 

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Which U.S. County Has the Most Cannabis Dispensaries? 

‍Los Angeles County in California has the most cannabis dispensaries in the U.S. with 1,481. This county has more dispensaries than any other state besides California itself. 

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Which State Has the Highest Number of Cannabis Dispensaries per Capita?

‍Oklahoma has the most cannabis dispensaries per capita with a whopping 36 dispensaries for every 100,000 residents. 

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Which States Had the Highest 420 Sales in 2024?

On April 20, 2024, cannabis dispensaries across the U.S. and Canada generated over $83.6 million in sales revenue, selling more than 6 million units. Oregon saw the highest sales boost with a 189% increase compared to a typical Saturday, followed closely by Florida at 185%. In terms of total dollar amount, California led the way with $27.2 million in sales, while Michigan came in second with $22.2 million.

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How Much Higher Was 420 2024’s Revenue Compared to 2023?

In 2023, 420 sales revenue surpassed a whopping $100 million across the U.S. and Canada. However, comparing this figure to the 2024 420 sales revenue, the industry experienced a 16% decrease year-over-year. 

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Which States Generated the Most Revenue From Recreational Cannabis Sales in 2023?

In 2023, these states generated the most revenue from recreational cannabis: 
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1. California: $5.3 billion

‍2. Michigan: $2.9 billion

‍3. Illinois: $1.6 billion
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How Much Tax Has Been Generated Through Cannabis Sales in 2023?

In 2023, states with operational cannabis markets generated a total of $3.73 billion in state sales tax from cannabis sales. In fact, ten states—Arizona, Colorado, Maine, Massachusetts, Michigan, Montana, Nevada, New Mexico, Oregon, and Washington—surpassed tax revenue from either alcohol or tobacco during the first quarter of 2023. These numbers not only showcase the demand for cannabis but also the impact of the legal cannabis market on tax revenue and social programs. 

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Which States Had the Highest Cannabis Tax Revenue in 2023?

The states with the highest cannabis tax revenue in 2023 were: 
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1. California: $1,082,452,368

2. Washington: $464,496,959

3. Illinois: $451,868,765

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Which State Has the Highest Cannabis Excise Tax?

The state with the highest cannabis excise tax as a percentage of the retail price is Washington with a 37% excise tax paid by consumers.

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What Is the Current State of the Cannabis Industry Job Market?

As of early 2024, the cannabis industry job market is thriving, with 440,445 full-time equivalent jobs supported by legal cannabis according to the 2024 Vangst Jobs Report. This report also highlights a 5.4% increase in employment over the past year, creating an additional 22,952 new jobs. This upward trend indicates the growth of the cannabis sector with more jobs likely becoming available as legalization efforts continue. 

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Key Takeaways From Mid-Year Cannabis Industry Trends

There’s no doubt that the cannabis sector continues to make its mark across the country. So far, 2024 has proven to be a year of significant growth and change with overall increased cannabis demand and sales. For cannabis businesses, understanding these key trends can help you better position yourself for success in this growing, yet competitive industry. 

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