U.S. Cannabis Industry Sees Growth and Changes

The U.S. cannabis industry is showing a mixed performance in 2024, with fewer capital raises but increased funding overall, indicating a potential investor rebound. According to Viridian Capital Advisors, capital raises fell by 19% to 126, while the total funds raised increased by nearly 18% to $2.2 billion, largely driven by mergers and acquisitions. Sustainability is becoming a key focus, with companies adopting eco-friendly practices, including biodegradable packaging and energy-efficient cultivation technologies. This shift aligns with consumer preferences, as nearly 60% are willing to pay more for eco-friendly products. Meanwhile, Tilray Brands is diversifying by entering the U.S. craft brewing market, leveraging its distribution network amid hopes for federal legalization, although it faces challenges in the Canadian market. Overall, the legal cannabis market is projected to grow significantly, with a CAGR of 15% to 20% driven by medical and recreational demand.