2025 is poised to be a banner year for the cannabis industry. With new recreational legalizations in major markets a likelihood, shifting consumer attitudes and behavior, emerging technology trends, and constantly evolving compliance laws, cannabis businesses are expecting big things from the coming year.
This post will explore these emerging trends and how they will affect cannabis-related businesses (CBRs) in 2025 and beyond.
New states with legalization prospects and potential of rescheduling
Pennsylvania and Hawaii are expected to legalize recreational use later this year, with many legislative hurdles dissolving over the past few months. However, the failure of Florida’s recreational push in November was a blow to the industry at large but notably reached 56% of the needed 60% of votes. So, it is likely that the fight for recreational cannabis in Florida is far from over.
On the federal level, a rescheduling hearing will be held early in 2025 to determine whether cannabis will be reclassified. Currently, cannabis is considered a Schedule I drug by the federal government, a designation it shares with heroin and LSD. The move to reclassify, initiated by the Biden administration, would move its classification to Schedule III. This far less dangerous category includes codeine-coated aspirin and certain types of steroids. This move will not affect consumers very much, but it will lead the way for greatly expanded medical research efforts and the overall cannabis legalization movement.
Also read: Four Critical Mistakes Dispensaries Make When Purchasing Cannabis Business Insurance
Sustainable cannabis practices
One cannabis trend that will transform the industry permanently is sustainability. A recent study found that over 69% of cannabis consumers preferred sustainable packaging. Pair this with the industry’s single-use plastic problem (some estimates suggest the industry goes through over 1 billion individual plastic containers yearly), and CBRs are primed for a green revolution. Some brands are taking the hint and exploring biodegradable packaging options such as reclaimed ocean or hemp plastic. The brand Bloomers offers biodegradable wax filters embedded with flower seeds that encourage combining “littering” with flowerbombing.
While there is currently no official “organic” label for cannabis due to federal regulations, similar certifications such as OCal and EnviroCann exist to help discerning consumers. Other brands are embracing small batch and “craft” labels to support sustainable growing techniques such as living soil, recycled rainwater, and energy-efficient growing practices.
Cannabis tourism
Cannabis tourism has emerged as a vibrant segment of the travel industry in regions where cannabis is legalized for recreational use. This growing trend attracts travelers who not only intend to enjoy the plant but also to explore a variety of experiences tied to cannabis culture.
In addition to exploring dispensaries, cannabis tourists often engage in specialized tours that educate them about the cultivation, history, and benefits of cannabis. Wellness retreats and spa treatments incorporating cannabis-infused products have also gained popularity, providing a unique way to relax and rejuvenate. Dining experiences that feature cannabis-infused culinary delights further enhance this niche tourism, allowing guests to savor gourmet dishes complemented by cannabis.
The concept of “bud and breakfast” accommodations caters specifically to cannabis enthusiasts, offering a relaxed environment to enjoy cannabis within a social and communal setting. These establishments often provide access to cannabis-related activities and amenities, creating a unique and immersive experience.
As societal perceptions of cannabis continue to evolve and its legalization spreads across more states in the U.S., the cannabis tourism market is projected to experience significant growth. By 2030, it is estimated that this market will reach $23.73 billion, reflecting increasing consumer interest in cannabis as part of a broader wellness lifestyle.
E-commerce and technology trends in cannabis
E-commerce is becoming more normalized within cannabis, with many dispensaries offering buy online, pick up in-store (BOPIS) options that accept debit or credit cards. However, regulatory hurdles and technical challenges remain in this arena (more on this in the next section). Additionally, many brands are experimenting with tech-forward programs such as subscription and delivery services for non-THC products and rewards programs for loyal customers. Online platforms like Dutchie are experimenting with generative AI to learn consumers’ preferences and make recommendations.
Also read: Employment Practices Liability Insurance (EPLI) for Dispensaries
The quickly changing regulatory landscape
The Secure And Fair Enforcement (SAFE) Banking Act has passed the House many times, but as of writing, it has never had the votes to pass in the Senate. This legislation would make it easier for CBRs to do business on the state level without federal repercussions. The Secure And Fair Enforcement Regulation (SAFER) Banking Act is currently making its way through Congress. It seeks to build on the previous iteration by allowing CBRs to hold bank accounts, accept more diverse forms of payment, clear insurance obstacles, and access federal lending and loan services.
While it is unclear whether either will pass in 2025, momentum has been building for some time. The SAFER Act could remove one of the most significant remaining regulatory stumbling blocks for CBRs–the requirement to conduct business in cash. SAFE could also remove fears of federal prosecution or other repercussions of state-legal CBRs.
Managing risk and uncertainty in the year ahead
As the cannabis industry continues to evolve and expand, so too do the risks associated with running a cannabis-related business. Whether navigating regulatory changes, managing employee-related claims, following technology trends, or protecting assets, having the right insurance coverage is essential for peace of mind and long-term success. At McGowan Wholesale, we specialize in providing tailored insurance solutions for cannabis businesses, ensuring you have the protection you need to pursue trends and thrive in this dynamic market.
Get in touch to learn more.
