Many of the cannabis industry's top officials acknowledge that the industry remains in a difficult place today, but their outlook at this week's Benzinga Cannabis Conference in Chicago is much more optimistic than last year. It was.
Several themes kept repeating in various panels and hallway conversations, including:
Continued lack of capital Optimism for legal reform Conflict between intoxicating hemp and regulated cannabis Hemp beverages
lack of capital
The persistent lack of funding seemed particularly frustrating for many businessmen who felt there were many opportunities in the market.
“(Fill in the blank) If only I had money I could put to good use,” was a common refrain. While there are certainly a number of financial companies willing to lend, the appetite for borrowing appears to be diminishing as many companies find debt levels oppressive.
Bo Whitney of Whitney Economics said in a presentation that the projected investment potential for the U.S. cannabis industry in 2025 is $16.8 billion (at a midpoint estimate). He believes this number could rise to $48 billion in 2030 and $78 billion in 2035. It also noted that these investment opportunities may change over time.
California topped the list of potential investments in 2025 and 2030, but unexpectedly moved to Texas in 2035. Despite Mr. Whitney's optimism for California, many attendees indicated they had all but given up on the state and its issues and were instead focused on other markets.
rosy hue of hope
Although market realities remain harsh, there was a noticeable scent of hope in the air, primarily centered around ongoing legislative efforts. Between SAFER Banking, Commercial Clauses Litigation, or changes to Schedule III, attendees felt that any of these items would be a positive for the industry.
Each of these initiatives feels closer to reality than further away.
Emily Paxia, managing director of Poseidon Investment Management, said her focus is on Supreme Court cases related to the Commerce Clause. Paxia gave a master class explaining the difference between interstate and intrastate commerce to a packed venue.
“I'm excited that people didn't really understand this case and now they're starting to understand this case. In the sense that people are going to be like, 'Okay, now we've covered everything.' , I think that’s uplifting,” she said. “The executive branch is talking about it, the legislative branch is talking about it, and we have the rescheduling part, but that's kind of the executive branch's job. And then, because we filed this lawsuit, , the judiciary can now respond.”
hemp situation
The conflict between intoxicating cannabis and regulated cannabis also came up during several panel discussions. One panel on the issue was packed to the brim, with passion on both sides on display. Although many participants seem to respect and acknowledge differing opinions, one can feel uneasy about the situation, as there is currently no conclusion that reaches maximum consensus.
Florida has been at the forefront of state amendment battles over legalizing adult-use cannabis and allowing unregulated hemp products. One panel noted that $100 million has already been spent on this effort. The staggering numbers also prompted complaints that some of the money could have been used for advocacy programs or other ways to support the industry.
hemp drink
Despite numerous comments about the hemp situation, hemp beverage manufacturers ignored it and handed out cans of cold beverages containing THC. Several hemp beverage companies had stalls in the exhibit hall handing out intoxicating hemp-based products.
Even though regulated cannabis companies were unable to hand out samples at conferences, hemp brands found many buyers for their products. Maybe it was curiosity, but the beverage booths were happy to explain their products to the audience.
