Cannabis News
Is the Cannabis Industry Cooling Down or Just Holding Its Breath Right Now?
The Leveling-Out Has Begun
When Colorado and Washington made history by fully legalizing recreational cannabis in 2012, the industry exploded like a champagne bottle that had been shaken for decades.
Sales surged almost immediately—and why wouldn’t they? Something that had been villainized and pushed into the shadows for generations was suddenly available at clean, well-lit stores with knowledgeable staff. No more texting sketchy dealers or meeting in parking lots. No more “my guy is running late” or “all I’ve got is this mysterious brown stuff.” Americans could finally buy cannabis products with the same ease as picking up a bottle of wine.
This green gold rush continued as legalization spread across the country. New markets opened in Oregon, California, Massachusetts, and beyond, each experiencing their own initial boom as consumers celebrated their newfound freedom. Cannabis businesses sprouted like, well, weeds. Investors poured billions into the sector, expecting an endless upward trajectory.
But something interesting has been happening over the past year or two. After watching this market for the past 15 years, I’ve observed a distinct “leveling-out” in 2024. The explosive growth has given way to a more sobering reality. In mature markets like Colorado, sales have actually declined significantly from their peaks. The industry isn’t collapsing by any means, but that initial euphoria has faded.
Today, we’re diving deep into this cannabis market cooldown. What’s causing this plateau? Is it market saturation, changing consumer habits, pricing pressures, or perhaps broader economic forces? And what can we expect moving forward, especially with the political shitfuckery surrounding cannabis policy at the federal level? Will the DEA’s potential rescheduling of cannabis to Schedule III change the game, or is it just another half-measure that misses the point?
Grab your favorite strain and settle in—we’ve got a lot to unpack.
Let’s face it—cannabis has undergone one of the most dramatic image rehabilitations in American cultural history. What was once depicted as a gateway to madness and moral decay in films like “Reefer Madness” is now casually discussed at dinner parties and openly consumed by celebrities on podcasts. These days, most people across the political spectrum support cannabis legalization in some form. The social stigma hasn’t completely vanished, but it’s fading faster than your memory after hitting a potent indica.
Sure, you still have your occasional media hit pieces about “today’s super-potent weed,” and there’s no shortage of conservative cucks who believe they should dictate what sovereign human beings can put into their own bodies. They’ll raise hell about the “dangers” of legalization while sipping their third bourbon of the evening. But these voices are increasingly drowned out by common sense and empirical evidence.
The truth is that the majority of Americans no longer consider cannabis to be more dangerous than beer. And if Budweiser can drop $7 million on a 30-second Super Bowl ad featuring talking frogs, then bowls of cannabis should be legally available to adults without controversy. This widespread acceptance is a double-edged sword for the industry, though.
When cannabis was first legalized, there was an undeniable electricity in the air. Hardcore stoners who had been advocating for decades were vindicated and celebrated. Curious newcomers who had been cannabis-curious but law-abiding finally had the opportunity to try it in a safe, legal environment. The euphoria of legalization was palpable, almost like fresh lovers high on endorphins and serotonin, eagerly exploring this new terrain of freedom.
However, as with any puppy love, that initial intensity eventually mellows. The novelty wears off. What was once exciting becomes routine. Similarly, the novelty of legal cannabis has faded into normalcy. The “I can’t believe this is actually happening” factor has been replaced with “Yeah, I might stop by the dispensary later, no big deal.”
I hate to break it to you all, but cannabis is now as mainstream as it gets. From soccer moms using tinctures to manage anxiety to lawyers unwinding with a vape pen instead of a martini, cannabis has infiltrated every demographic. College professors, construction workers, retirees, tech entrepreneurs—cannabis use cuts across all social boundaries. It’s just not that edgy or counterculture anymore.
As a result, the cultural force that was driving the cannabis industry in its inception has lost some power. Many consumers assume it’s a done deal—cannabis is legal, accessible, and here to stay. But this complacency is dangerous.
And that’s something we definitely need to address—until cannabis is completely removed from the Controlled Substances Act, nothing is set in stone. Federal prohibition still creates enormous problems for the industry, from banking restrictions to research limitations to inequities in enforcement. Just because you can walk into a dispensary doesn’t mean the battle is over.
The waning of novelty may be inevitable, but the fight for full legalization and normalization continues, even as we browse dispensary menus with the same casual interest we once reserved for Netflix titles.
The cannabis industry’s slowdown in 2024 wasn’t just about market maturation—it was also heavily influenced by the presidential election hanging over everything like a thick cloud of uncertainty. It’s pretty much a given that during presidential election years, cannabis reform tends to stall out as legislators and regulators become hyper-focused on election results and avoiding controversial moves.
The 2024 election was particularly paralyzing due to the vast ideological divide splitting the country. When Donald Trump reclaimed the White House to become the 47th president, the cannabis industry collectively held its breath. After all, the Biden administration had set various cannabis reform wheels in motion—however slowly they were turning—with the DEA’s recommendation to reschedule cannabis to Schedule III being the most significant.
With Trump’s victory, everything suddenly went into freeze-frame. Industry players, investors, and advocates all found themselves stuck in a waiting game, unsure how the new administration would approach cannabis policy. Would Trump honor the rescheduling process already underway? Would he reverse course completely? Nobody knew for certain.
I already told you all that Schedule III was dead on arrival, but the situation is even more complex when you consider who really came into power with Trump. People weren’t just voting for Trump—they were voting for the influence of Elon Musk, Tulsi Gabbard, RFK Jr., and others who have Trump’s ear. That’s why I call him “President Trusk”—because arguably Musk has unprecedented influence over the president’s policies and worldview.
I could go down a deep, dark conspiracy rabbit hole about all of this, but let’s stay focused on the cannabis stuff. What matters is that the industry is now recalibrating and gauging their next steps. We know that Schedule III will likely be blocked or abandoned, and that the only viable path forward is legalization via Congress. However, while that lengthy process plays out—if it even begins—state-by-state legalization must continue to build momentum.
The stark reality is that the next four years will be a roller coaster of unpredictable policies and political maneuvering. Most Americans will be so fixated on the broader cultural and political battles that cannabis reform may fade from the spotlight. The media cycle will be dominated by whatever outrageous tweet or policy announcement comes next, not by incremental changes to state cannabis programs.
I personally have no idea how it’s going to play out, and any analyst who claims they do—unless they have insider information—is lying through their teeth. We’re in uncharted territory with no reliable map.
The truth is that we’re in a weird spot. Without more states legalizing cannabis or expanding their existing programs, the federal government will have little incentive to pursue meaningful reform. The industry’s growth may continue to plateau until there’s a clear signal from Washington.
And let’s not forget, Trump promised the death penalty for drug dealers during his campaign. Will that extreme stance apply to all drugs or just fentanyl? Could the United States become an even more dangerous place for those involved in any aspect of drug policy? The uncertainty alone is enough to make investors hesitant and consumers anxious.
The post-election cannabis landscape isn’t just leveling out—it’s holding its breath, waiting to see which way the wind blows from the White House.
THE SATURATED CANNABIS MARKET, READ ON…
