Lenny Bruce, the groundbreaking comedian, wrote in 1964: “Marijuana will be legal someday, because the many law students who now smoke pot will someday become Congressmen and legalize it in order to protect themselves. You wouldn’t believe how many people smoke pot. If anyone reading this would like to become mayor, believe me, there is a vast, untapped vote.”

Back then, marijuana was illegal everywhere in America and a social taboo. Branded a “sick comic,” the socially provocative Bruce was generally blacklisted from television. Sixty years later, his insights have proved prescient, especially when it comes to pot.

With legalization gaining traction around the world, canna-businesses are positioned for substantial growth in 2024. The industry has endured a slump in 2023, but that’s about to change as the global economy recovers and the legal market for cannabis gets exponentially larger.

Investments in political lobbying, public awareness campaigns, and alliances with policymakers are becoming common strategies for companies.

Several legalization bills are pending in Congress on the federal level, but their fates remain uncertain due to intense political polarization in Washington, DC. The states have stepped in to get the job done.

In the U.S., marijuana is legal for recreational use in 24 states and for medical use in 38 states. Legalization efforts in red states will accelerate in 2024, because the number of pickup opportunities in blue states has narrowed.

According to the latest polling from Gallup, 70% of U.S. adults currently say that the use of marijuana should be legal, up from 68% in 2022.

In 1969, when it began polling on the topic, Gallup found that only 12% of respondents favored legalization. Two years later, in 1971, President Nixon launched his War on Drugs, which proved disastrous and has since been largely dismantled.

Product diversification, strategic alliances, social responsibility…

As the cannabis industry matures, companies are pursuing product innovation to differentiate themselves in a crowded market. In 2024, we can expect a plethora of new and sophisticated cannabis products, ranging from unique strains and extracts to edibles and beverages. Research and development investments are skyrocketing as companies strive to create leading-edge products that cater to diverse consumer preferences.

Marijuana is invading the consumer mainstream, even the adult beverage business, at a faster pace. We’re seeing a proliferation of deal-making between companies that make branded marijuana products and food and beverage conglomerates.

It’s important for cannabis companies and their investors to understand the many nuances of consumer preferences for marijuana. Partaking of weed these days involves a lot more than just lighting up a joint or bong. The panoply of cannabis products is getting more varied and innovative.

Technological advancements are playing a crucial role in product development. Companies are leveraging state-of-the-art extraction methods, precise dosing technologies, and diverse delivery systems to enhance the user experience. From high-potency concentrates to infused beverages, the cannabis industry is embracing product variety to attract more consumers.

Marijuana entrepreneurs are increasingly launching strategic partnerships and mergers. Collaborations among cannabis producers, distributors, and retailers are becoming more common, allowing companies to streamline operations, reduce costs, and expand their market reach.

International partnerships are also on the rise as companies seek to tap into emerging markets and diversify their revenue streams. Cross-border collaborations enable businesses to share expertise, navigate complex regulatory environments, and access a larger consumer base.

The cannabis market worldwide is projected to generate revenue of $51.28 billion in 2023 and $60.78 billion in 2024 (USD), according to research firm Statista. The industry is expected to show a compound annual growth rate (CAGR) between 2023 and 2028 of 14.95%, resulting in a market volume of $102.87 billion by 2028 (see chart).

Marijuana industry leaders are recognizing the importance of environmental stewardship. They’re adopting eco-friendly practices throughout the supply chain, from sustainable cultivation methods (e.g., hydroponics) to biodegradable packaging. These efforts appeal to socially conscious consumers.

Moreover, many marijuana companies are engaging in social equity initiatives. These include community outreach programs, as well as efforts to rectify the historical injustices associated with the War on Drugs. By aligning their brands with values that resonate with consumers, companies are not only contributing to positive social change but also cultivating a loyal customer base.

The coming year will see greater prevalence in the cannabis industry of strategic investments in distribution channels and retail networks. With an increasing number of regions legalizing cannabis, companies are establishing a presence in new markets to capitalize on growing demand. Whether through acquisitions of local businesses or partnerships with established retailers, expanding market reach will be critical in 2024.

E-commerce is playing a significant role in this market expansion. As online sales of cannabis products become more widely accepted and regulated, companies are investing in user-friendly platforms and digital marketing to capture a share of the burgeoning online market. This shift towards digital channels not only broadens the customer base but also provides companies with valuable data insights to refine their marketing strategies and product offerings.

The late Mr. Bruce was a free speech martyr, frequently jailed for “profanity” and for shocking America’s conscience. The pioneering comic would be amazed at how commonplace and profitable the “devil’s weed” has become.

WATCH THIS VIDEO: “Sin Stocks” and The Virtues of Agnostic Investing

To learn more about these trends, I suggest you read my new book: The Wide World of Weed and Psychedelics.

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John Persinos is the editorial director of Investing Daily.

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