3 Downstream Cannabis Value Chain Predictions Cultivators Can Exploit

Rescheduling, tax relief, and legalization are the hottest topics in the cannabis industry again this year, but when you dig a bit deeper into the micro- and macro-environments, you’ll find bold predictions that could create significant opportunities for cultivators who are ready and willing to exploit them.

The key is to analyze downstream predictions – those further along the value chain and closer to consumers. The team at MJBiz released its Cannabis Industry Trends Report 2024 recently, and within the big predictions are innovative opportunities for success. Let’s take a look at three of them.

1. Consumption Lounges will Grow

It’s inevitable that more consumption lounges will open, and this trend will continue across the country in the coming years with Las Vegas at the forefront. As Andrew Kay, Chief Commercial Officer for Sweet Leaf Madison Capital, says in the Cannabis Industry Trends 2024 report:

“[The growth of consumption lounges will] impact the industry in multiple, unknown ways as a more defined cannabis culture emerges as a result of individuals gathering to consume with friends and strangers.”

The key phrase in that quote is a more defined cannabis culture. In other words, it’s highly likely that just as the drink someone chooses at a bar matters, the cannabis strain they choose will become an important social and cultural cue.

And that’s why the growth of consumption lounges creates an opportunity for cultivators. Growers should be developing strategies to grow crops that will meet the evolving demands of future cannabis consumers whose preferences may shift as consumption lounges become more prevalent, accepted, and popular.

2. Market Segmentation will Increase

The demographic profile of cannabis consumers has been changing a lot in recent years. As reported by MJBiz, more than 50% of cannabis consumers are women today, and nearly 60% are married with children.

In addition, New Frontier Data revealed in its Cannabis Consumers in America 2023 report that the demographic profile will certainly change again in the future as more non-consumers become medical and/or adult-use customers.

New Frontier Data’s research shows one out of four non-consumers in the United States (25%) who have never used cannabis say they’re open to trying it in the future. An even larger number of non-consumers say they would consider using it in medical circumstances.  

Bottom-line, today’s cannabis consumer demographic profile will not be the same next year. MJBiz recommends that cannabis businesses offer both stronger and less potent products to appeal to diverse consumer demographics in the future. In addition, cultivators should prioritize terpene and minor cannabinoid expression.

3. States will Try to Move Illicit Market Consumers to the Legal Market

As Chris Roberts from MJBizDaily says, “The illicit market must be brought to heel for legalization to work.” That statement is 100% true. The legal market can’t compete on price or accessibility given current regulations. Rescheduling and tax reform will help, but states need to take much bigger steps to have a real impact.

According to New Frontier Data, nearly two out of three potential cannabis consumers (62%) believe that regulated cannabis is safer than non-regulated cannabis. Quality will be crucial to win non-consumers, and to convert gray-market consumers, the researchers say, “Product quality must be superior to – or at least competitive with – the gray market.”

This prediction creates another opportunity for cultivators who are willing to invest the time and money into growing high quality cannabis. While diversity in product selection is essential to meet the needs of increasingly segmented audiences, quality will remain essential for long-term, sustainable growth.

Key Takeaways about Cannabis Industry Predictions Cultivators Can Exploit

These three predictions and corresponding opportunities make one thing very clear – cultivators should be growing to maximize quality as well as THC, minor cannabinoid, and terpene expression.

Using bio365 clean living media that has been proven to maximize chemotype expression is the way to do it! You’ll get the highest quality plants when you use bio365 growing media. Real-world data shows bio365 helps you grow healthier, bigger, and more resilient plants.

Set yourself up to exploit these opportunities by trying bio365 growing media and see the difference it makes for your plants. Start a free trial or contact us to learn more.