With the US welcoming a new presidential administration this year, the question on everyone’s mind is how it will change things. Generally, marijuana and marijuana products have not been seen in a favorable light by most presidents and were made illegal in the 1930s. While recreational and medical marijuana have become legal across several states since the ban in 1937, cannabis has remained federally illegal. However, cannabis is more popular than ever, and the multitude of cannabis products on the market appeal to a growing user base. Without federal legalization, the growing market has limited opportunities, which presents some unique challenges to businesses and investors alike. While the industry continues to grow both domestically and globally, the US has the chance to foster cannabis-friendly policies, make current policies more consistent, and influence global attitudes towards cannabis.

Here are our predictions for the cannabis market in 2025:

2025 Cannabis Market Predictions

 Continued Global Legalization Trends:

As cannabis and cannabis products gain popularity, it only makes sense that more countries would ease their restrictions. In the US alone, cannabis was recommended to be  rescheduled as a Schedule III drug, which could possibly expand the industry’s access to banking and financial services. Abroad, Germany and Poland are striving for broader, non-medical marijuana access, while others have expanded their medical marijuana markets.  Globally, the use of recreational cannabis continues to grow despite potential challenges from more conservative governments. Between 2025 and 2029, the global cannabis market is expected to increase by over 2% expanding the market by billions of dollars. Widespread legalization could also set up the cannabis market to be eligible for international trade in the near future, albeit with some caveats. 

Increased Product Diversification: 

As interest in cannabis and cannabis products continues to rise, companies will likely have to increase their offerings and get creative with their products. While vape cartridges and pre-rolls are also usually some of the most popular products at dispensaries, younger users are also more likely to take edibles instead of using traditional flower or oil products. While edible gummies are popular, energy drinks, sparkling water, and chocolate are also on the menu for users. With so much variety, the edibles market is thriving, with an expected CAGR of 16.5% in the next seven years, which shows a huge potential for the edibles market to continue to grow. The use of cannabis wellness products is also steadily growing, showing the diverse needs and preferences of those who use cannabis. Companies with substantial capital, such as Curaleaf Holdings and Green Thumb Industries, are exploring new product lines, including low-dose THC beverages and hemp-derived products, aiming to diversify their already-existing product lines and perhaps reach different consumer bases. 

Tech Integration in Cultivation: 

As the cannabis industry continues to grow, the use of advanced tech is revolutionizing cultivation techniques. With specifically-made algorithms leading the way, artificial intelligence models can analyze what each plant needs, from soil health and moisture levels to humidity levels. Some AI models can also identify harmful pests and diseases before they spread, which results in a higher yield and less plant waste. With sophisticated technologies like the blockchain, cannabis is becoming more "trustworthy,” and traceable, giving insight into where and how it was produced, along with keeping consumers’ data protected when buying cannabis products. As such advanced tech gets fully integrated into the industry, it’s likely that companies will be able to use it in more creative ways. For example, companies like Phylos Bioscience and Front Range Biosciences are already using AI to accelerate the development of strains tailored to consumer wants and market demands, and other companies will likely follow suit as these advanced technologies become more widely adopted. 

Rise of Cannabis Tourism:

As demand for cannabis and cannabis products rises, so does the demand for cannabis-centered experiences. While relatively few countries have legalized recreational cannabis, some of these places may develop cannabis tourism hubs that offer unique, tailored-to-the-consumer cannabis experiences. Even with so few regions available for this kind of tourism, the cannabis tourism industry is still on an upward trajectory and is expected to grow at a compound annual growth rate (CAGR) of 12.38% from 2024 to 2030. As more and more regions begin to ease restrictions on recreational cannabis use, the cannabis tourism industry will likely continue to grow. A 2020 report found that almost 30% of young leisure travelers want to do cannabis-related activities while on vacation. Since the interest is clearly there, places with legalized recreational marijuana policies will likely see a greater number of tourists looking to light up while on vacation. 

Regulatory Shifts in the U.S.: 

The Drug Enforcement Administration (DEA) is considering rescheduling cannabis from Schedule I to Schedule III, following recommendations from the Department of Health and Human Services (HHS). In September, Trump indicated support for rescheduling marijuana as a Schedule III drug and voted in support of Florida’s legalization of cannabis. This could be a good sign for cannabis businesses, as it could encourage a domino effect of state-level cannabis reforms allowing the use of cannabis if certain federal guidelines are met. Reclassifying the drug could also make marijuana eligible for some federal protections, as cannabis would be considered available for medical use. It would also mean that cannabis businesses would have greater access to banking and financial services. In general, state-level reform has also been on the rise, and with Trump’s states-rights stance, this could mean a broader acceptance of marijuana legalization at the state level. Currently, 24 states have legalized recreational cannabis, while medical marijuana is legal in 40. If Trump goes through with pro-cannabis policies and reforms, this could lead to a higher acceptance rate nationwide. 

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