Despite the complexities and challenges of the cannabis industry, business operators across the United States are expressing optimism about the future. According to an online survey, a significant majority of revenue-generating cannabis businesses believe the industry is on an upward trajectory, even without the imminent rescheduling of marijuana.
Positive Outlook for Cannabis Businesses
Survey data from the MJBiz Factbook reveals that more than 48% of cannabis businesses expect the industry to perform "somewhat better" or "much better" over the next 12 months. When including those who foresee the industry remaining stable, this number jumps to 82%. Only a small fraction, 19%, anticipate a downturn in the coming year.
These positive sentiments were captured before U.S. Attorney General Merrick Garland proposed moving marijuana from Schedule 1 to Schedule 3 of the Controlled Substances Act. This move could potentially alleviate some regulatory burdens, but the industry’s optimism exists independently of this potential change.
Insights from Industry Leaders
Bob Groesbeck, co-CEO of Planet 13 Holdings, highlights the steep learning curve for new entrants in the cannabis sector. "You go in bright-eyed, bushy-tailed with high expectations not fully understanding how complex this business is," Groesbeck shared. The regulatory landscape is particularly challenging, requiring constant navigation and adaptation.
Lo Friesen, founder and CEO of Heylo, echoed similar sentiments. Celebrating seven years in business, she noted the initial excitement of entering the industry but emphasized the hard work that follows. "The first two years are a honeymoon phase... The years that follow are where the real work begins."
Chad Ricketts, director of retail for Native Roots Cannabis, pointed out the sense of potential and opportunity that persists in the cannabis industry. Given its youth and rapid evolution, there's a prevailing optimism among businesses about the long-term outlook, particularly as the industry moves toward federal legalization.
Sector-Specific Perspectives
The optimism within the cannabis industry varies by sector. According to the MJBiz Factbook survey, manufacturers and processors are the most optimistic, with 73% expecting improvement over the next 12 months. Retailers are also hopeful, with 67% predicting a better future into 2025.
However, cultivators are slightly more cautious, with only 59% expecting positive changes. This sector faces unique challenges, including optimizing yields and managing environmental factors, which can temper their outlook.
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