Table of Contents:

Cannabis Market 2024 Year-End Review Cannabis Market Forecast: 5 Top Trends That Will Affect Cannabis in 2025 10 Biggest Cannabis Stocks in the US and Canada

Cannabis Outlook 2025

Table of Contents

Cannabis Market 2024 Year-End Review

Cannabis Market Forecast: 5 Top Trends That Will Affect Cannabis in 2025

10 Biggest Cannabis Stocks in the US and Canada

Cannabis Market 2024 Year-End Review

Cannabis is becoming increasingly mainstream in North America.

Recent Pew Research Center analysis reveals that most Americans now live in states where recreational cannabis is legal, and a remarkable 79 percent have at least one dispensary in their county.

However, federal legalization remains elusive, creating questions for investors watching the space.

Meanwhile, in Canada, companies are looking to the government for stronger support.

Here the Investing News Network examines the key trends that shaped North America's cannabis industry in 2024.

US rescheduling stalls, Canadian companies face challenges

The US cannabis sector saw excitement in May, when the US Department of Justice proposed that the drug be rescheduled from a Schedule I substance to a Schedule III substance. The US Drug Enforcement Administration (DEA) formally initiated the process in August, and a hearing was scheduled for December 2.

However, this was later clarified to be a preliminary hearing focused on procedural matters and without witness testimony. The clarification came after Chief Administrative Law Judge John Mulrooney II challenged the process by which the DEA selected its witnesses, requesting more information on the qualifications of those set to testify.

Heading into 2025, the outlook for US cannabis reform remains uncertain, particularly when it comes to the timing and likelihood of rescheduling. The process is now not expected to be finalized until late 2025.

Also in the US, the long-awaited SAFER Banking Act failed to gain enough support from the Senate to pass, leaving cannabis businesses with limited access to traditional banking services.

The Canadian cannabis market faced a setback as well this past year when the federal budget failed to address industry concerns, particularly the high excise tax that continues to eat into profits. Instead, Health Canada proposed a series of changes to the country's cannabis regulations in June to streamline operations and reduce costs.

The changes include simplifying licensing, production and security clearance requirements, increasing production limits for “micro-cultivators” and making it easier for licensees to submit required reports to Health Canada.

Health Canada is currently considering comments after a public consultation period that ended in July.

US state cannabis market developments

While cannabis rescheduling stalled in the US, state markets saw more movement.

Ohio launches recreational sales

Ohio launched recreational cannabis sales on August 6, marking the only new state market for the year.

Its entry into the legal cannabis arena is expected to generate significant economic activity, tax revenue and job creation within the state. Recreational sales reportedly topped US$131 million in less than three months.

Kentucky legalizes medical cannabis

Kentucky’s cannabis market also saw developments in 2024 with the legalization of medical cannabis and the establishment of a regulatory framework for cultivation and distribution.

However, the rollout of the program faced challenges and mixed reactions.

The state established a limited licensing system, with a set number of licenses to be issued for cultivators, processors and dispensaries. Due to the limited number of licenses and high demand, a lottery system was used to determine who would receive licenses. At the same time, cities and counties were given the ability to opt out of allowing cannabis businesses to operate within their borders. This has led to some jurisdictions prohibiting dispensaries or other cannabis-related businesses, and has resulted in a slow rollout for medical cannabis in Kentucky.

New York's recreational rollout stalls

New York's recreational cannabis market experienced growth in 2024, but the slow rollout of legal dispensaries allowed the illicit market to remain competitive. The state's cannabis control board has increased its efforts to crack down on illegal sales, but problems with unlicensed retailers persist.

Adding to the state’s legal woes, on December 4, the Medical Cannabis Industry Association sued cannabis regulators over an “unconstitutional” and “onerous” US$20 million fee imposed by the state for medical licensees looking to cross into the recreational market. The group also highlights that New York is losing tax revenue.

Election brings mixed results

November saw mixed results for US states with cannabis legalization on the ballot. Nebraska was the only state to legalize recreational cannabis, while Florida, North Dakota, South Dakota and Arkansas maintained prohibition.

How did major cannabis players perform in 2024?

2024 tested the resilience of cannabis companies and investors.

In its review of the year, the Panther Group mentions how it had to pivot, focusing its resources on the top 20 percent of the market — “the stable, scalable operators who are critical to the industry’s long-term health.”

Here's a look at what some of the industry's biggest players did in 2024 and how they performed.

SNDL (NASDAQ:SNDL), which owns and operates a network of cannabis retail stores across Canada, has seen share price growth in 2024, up 17.09 percent year-to-date as of December 23.

The company’s most recent quarterly report, released on November 5, projects positive free cashflow for 2024. Notably, SNDL's liquor retail segment has shown improved profitability, with operating income increasing by 42.5 percent year-on-year during the third quarter despite a minor decrease in revenue.

Trulieve (CSE:TRUL,OTCQX:TCNNF), which commands a significant share of the Florida market, saw share price momentum earlier in 2024, but is set to end the year flat. The company focused on expanding its retail footprint this past year, with a substantial number of new dispensaries opening, primarily in Florida.

Tilray (NASDAQ:TLRY,TSX:TLRY) demonstrated progress this year in both achieving profitability and capitalizing on its diversified business model. Its October 10 report for its first fiscal quarter of 2025 shows its net loss is improving, with healthy margins for its beverage alcohol, cannabis and wellness segments.

This success, coupled with overall increased efficiency and gross profit, has Tilray projecting positive free cashflow for the year, a significant milestone in the cannabis industry. On November 7, the company also reported positive trial results for an oral cannabis extract for chemotherapy-induced nausea and vomiting.

Despite a dip in overall Canadian cannabis revenue in its second fiscal quarter of 2025, Canopy Growth's (NASDAQ:CGC,TSX:WEED) medical cannabis sales jumped 16 percent compared to the same period last year, while adult-use sales faced a temporary setback. The company’s US division also completed its acquisition of Acreage Holdings, a US-based multi-state operator with a strong presence in New York.

Canopy Growth's international business delivered an especially strong performance in Q2, with a 12 percent year-on-year increase in revenue growth, driven by markets in Poland and Germany. In particular, its Storz & Bickel vaporizer brand saw a significant boost of 32 percent thanks to regulatory changes in Germany and increased US sales.

Strategic partnerships with EU-based cultivators helped the company establish a foothold in Europe.

Investor takeaway

The US cannabis industry is navigating a complex landscape of opportunities and challenges. While market expansion and increased mainstream acceptance drive growth, regulatory hurdles and financial pressures persist.

As the industry matures, companies that can adapt to changing regulations, demonstrate profitability and meet evolving consumer demands are likely to emerge as leaders in this dynamic market.

While the Canadian cannabis market has progressed further, work remains if it is to fully flourish.

Overall, the future of the cannabis industry will depend on ongoing legal reforms, technological advancements and consumer trends, making it a sector to watch closely in the coming years.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

Cannabis Market Forecast: Top Trends That Will Affect Cannabis in 2025

2025 could be a year of transformation for the cannabis industry.

With rescheduling potentially on the horizon in the US, a new era of opportunity awaits. However, with a new president set to take the helm in January, uncertainty and key challenges remain for market participants.

Read on to learn more about trends that could shape the cannabis market in what may be a critical year.

Will the US reschedule cannabis in 2025?

The US cannabis market could see a major shift in 2025 if rescheduling finally happens.

This past May, the country's Department of Justice initiated the process to reschedule cannabis from a Schedule I substance to a Schedule III substance; then, in August, the US Drug Enforcement Administration (DEA) published a Notice of Proposed Rulemaking in the Federal Register, an important formal step.

On November 26, after a public comment period, the DEA announced it would hold a formal hearing on the matter. However, the process has encountered delays and is now not expected to be finalized until late 2025.

If successful, the move to reschedule cannabis has the potential to significantly benefit cannabis businesses by removing barriers to essential services like banking and patent protection. However, the path forward for rescheduling remains uncertain, particularly after Donald Trump's win in the US election this past November.

During a roundtable discussion with cannabis industry leaders, the online magazine Cannabis Science and Technology asked experts how the results of this election might impact the rescheduling process.

Kim Anzarut, CEO and founder of Allay Consulting, replied, “Election results will undoubtedly shape the trajectory of cannabis rescheduling. With Trump’s re-election, Trump might continue to leave cannabis policy largely to the states but could lean toward rescheduling if it proves to be a popular move that aligns with GOP support for states' rights.”

"On the other hand, new leadership could prioritize rescheduling or even push for full legalization to align with social equity and justice reform efforts. Either way, the FDA and DEA are being directed to reevaluate cannabis’ current status, which will set the stage for the inevitable regulatory overhaul," she also told the news outlet.

David Vaillencourt, founder and CEO of the GMP Collective, chairman of S3 Collective and vice chair of ASTM International Committee D37 on Cannabis Standards, also expressed his thoughts, noting, “Trying to forecast what a Trump administration might do is like picking stocks based on a fortune cookie: amusing but unreliable.”

He added, “That said, there is reason for cautious optimism. Trump’s pick for Secretary of Health and Human Services – assuming he is confirmed by the Senate — Robert F. Kennedy Jr. supports natural medicine and criticizes the FDA’s rigidness. Additionally, we saw Trump endorse Florida’s Amendment 3 to legalize adult-use cannabis. Whether this signals a genuine shift or a strategic move to outmaneuver (Ron) DeSantis is anyone’s guess."

Trump has signaled a willingness to support cannabis legalization, but several of his cabinet picks have either voted against measures to advance legislation related to the industry or have spoken out against cannabis reform.

If rescheduling is successful, it would also remove the trigger for the Internal Revenue Service tax code 280E, which prevents cannabis business owners from deducting regular business expenses.

Other legislative efforts in the US and Canada

In the event that rescheduling efforts falter, the SAFER Banking Act, which passed a House vote with bipartisan support in 2023, could provide much-needed access to financial services. However, the act is unlikely to pass through the Senate before the Congress wraps on January 3, 2025, effectively sending the initiative back to square one.

Despite this setback, there may be renewed hope for banking reform as Rep. French Hill (R-AR), a supporter of cannabis banking legislation, has been selected to serve as chair of the House Financial Services Committee.

While the US grapples with these rescheduling and banking complications, Health Canada is proposing a series of changes to ease the administrative burden and reduce spending and wait times.

Some of the changes proposed in June include simplifying licensing, production and security clearance requirements, increasing production limits for “micro-cultivators” and making it easier for licensees to submit required reports to Health Canada. Comments submitted by the public are currently under review.

US cannabis industry growth to continue

Even as the US cannabis industry faces setbacks it remains primed for growth, with sales projected to hit US$71.8 billion by 2028, according to an Ocean Como market report that cites data from IBIS World.

This upward trajectory will be fueled by legalization efforts, new market entrants and product innovation.

Research and product development will maintain their importance as the industry adapts. This is creating opportunities for businesses specializing in research, testing and product formulation. If cannabis ends up being rescheduled, that could help the sector attract research funding from the healthcare and wellness sectors.

Maridose, a DEA-licensed cannabis producer, launched a Series A funding round at the Benzinga Cannabis Capital Conference in October. After the DEA initiated rescheduling proceedings in May, Maridose told Reuters that it had “been receiving more inquiries from both non-profits and commercial entities, including state-licensed cannabis firms.”

Market consolidation is set to continue in 2025, and mergers and acquisitions will create opportunities for both established players and emerging companies to expand market share and access new resources.

“Those who have the cash and ability to expand can find great deals from those who are out of time,” Steven Ernest, vice president of originations for Chicago Atlantic, said at MJBizCon in early December. “It is always darkest before the dawn, and now is the time to be aggressive and acquire cash flow-generating assets."

At the state level, recreational cannabis is legal in 24 states in the US, while medical cannabis is legal in 40. Looking forward to the new year, Minnesota is slated to begin recreational sales in 2025, although there have already been delays. A bill to legalize medical marijuana was also recently re-introduced in South Carolina.

The hemp sector, a significant part of the cannabis market, faces a dynamic landscape. While the 2018 Farm Bill legalized hemp cultivation, the proposed Rural Prosperity and Food Act takes a more restrictive approach to the definition of hemp by considering all forms of THC, not just delta-9, and capping the total THC content at 0.3 percent.

This potential shift could impact the regulation of CBD and other hemp-derived cannabinoids, creating both opportunities and challenges for hemp businesses as they adapt to changes.

"Those who have the cash and ability to expand can find great deals from those who are out of time. It is always darkest before the dawn, and now is the time to be aggressive and acquire cash flow-generating assets" — Steven Ernest, Chicago Atlantic

Major cannabis players moving forward

Major players Curaleaf Holdings (TSX:CURA,OTCQX:CURLF), Trulieve Cannabis (CSE:TRUL,OTCQX:TCNNF), Green Thumb Industries (CSE:GTII,OTCQX:GTBIF), Verano Holdings (OTCQX:VRNOF) and Tilray Brands (NASDAQ:TLRY,TSX TLRY) continue to dominate the cannabis retail and production space, holding significant market share.

Meanwhile, Canopy Growth (NASDAQ:CGC,TSX:WEED) possesses an advantage with its sizeable patent portfolio, a testament to its commitment to research and development.

Lesser-known retailer and producer Goodness Growth was rebranded as Vireo Growth (CSE:VREO,OTCQX:VREOF) in July and underwent a leadership transition in October. The company reported solid Q3 results, and CEO Amber Shimpa expressed optimism about its prospects, particularly in the burgeoning Minnesota market.

On December 18, the company raised US$75 million in equity financing and announced its intention to expand its market share with the acquisition of four single-state operators.

As the cannabis industry continues to mature, these and other companies will be battling for dominance in a rapidly evolving market.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

10 Biggest Cannabis Stocks in the US and Canada

2024 saw the cannabis industry grappling with persistent challenges, mirroring those of the preceding two years. The absence of meaningful regulatory reform in both the US and Canada continues to stifle market growth

There was some positive momentum in the US as new markets entered the industry and the US Drug Enforcement Administration moved to reschedule cannabis from Schedule I to Schedule III; however, subsequent roadblocks suggest the process could take longer than industry hopefuls originally anticipated.

Cannabis companies in the sector continue to move forward and develop their offerings, and with potential catalysts ahead some investors are interested in getting involved. Looking at the key players is often a good place to get started, so this list of US and Canadian cannabis stocks covers the companies with the largest presence in two major cannabis ETFs.

This list of the biggest publicly traded cannabis companies was put together based on the top-weighted cannabis stocks included in the AdvisorShares Pure US Cannabis ETF (ARCA:MSOS) and the Horizons Marijuana Life Sciences Index ETF (TSX:HMMJ) as of December 23, 2024. Share price information for the companies was accurate as of that time.

US cannabis market

Cannabis is federally illegal in the US, but state market openings have allowed some operators to thrive. Typically these firms set up vertically integrated businesses with a focus on branded products, retail networks and licenses.

While these companies have adapted to regulatory challenges, they have much to gain from country-level reform in the US, and are eager to see more welcoming federal laws that will allow their businesses to develop further.

US-focused cannabis fund

The AdvisorShares Pure US Cannabis ETF (ARCA:MSOS) provides exposure to public companies exclusively operating within the US cannabis industry. By investing in companies that are working in states with clear guidelines, MSOS gives investors a way to be more selective about the types of cannabis companies they're investing in.

1. Green Thumb Industries (CSE:GTII,OTCQX:GTBIF)

Company Profile

ETF weight: 36.3 percent
Market cap: US$1.89 billion
Share price: US$7.81

Green Thumb Industries is a multi-state operator (MSO) with headquarters in Chicago, Illinois.

The company is involved in the entire process of the industry, from cultivating and producing cannabis products to selling them in its own retail stores, of which there are many across the United States. Green Thumb Industries owns a portfolio of well-known cannabis brands like Rythm, Beboe, Dogwalkers, Incredibles and Doctor Solomon's.

2. Trulieve Cannabis (CSE:TRUL,OTCQX:TCNNF)

Company Profile

ETF weight: 18.63 percent
Market cap: US$967 million
Share price: US$4.81

Trulieve is another major player in the cannabis industry, with a strong focus on medical cannabis. The company offers a diverse selection of cannabis products including flower, pre-rolls, concentrates, edibles, topicals and more.

Vertically integrated, Trulieve Cannabis has a dominant market share in its home state of Florida, as well as in Arizona and Pennsylvania. In June 2024, the company opened its 200th dispensary in the United States.

3. Curaleaf Holdings (TSX:CURA,OTCQX:CURLF)

Company Profile

ETF weight: 15.05 percent
Market cap: US$1.1 billion
Share price: US$1.50

Curaleaf Holdings has a significant presence in the US cannabis market, with over 150 dispensaries and several cultivation centers across 19 states. The company is also continuing its expansion into the European cannabis sector, where it already has a strong presence. Curaleaf began trading on the Toronto Stock Exchange on December 14, 2023.

4. Verano Holdings (NEO:VRNO,OTCQX:VRNOF)

Company Profile

ETF weight: 8.24 percent
Market cap: US$1.51 billion
Share price: US$1.24

Verano Holdings is a vertically integrated cannabis company. It delivers high-quality products out of its 150 Zen Leaf and MÜV retail locations, which are spread across 14 states.

Verano moved from the CSE to Cboe Canada on October 18, 2023, a move to increase the company's visibility and accessibility to investors, while leaving it in a better position to transition to a US exchange if cannabis is legalized there, according to CEO George Archos.

5. Cresco Labs (CSE:CL,OTCQX:CRLBF)

Company Profile

ETF weight: 6.5 percent
Market cap: US$398.64 million
Share price: US$0.87

Cresco Labs is a vertically integrated multi-state cannabis operator in the United States. A leading US cannabis company, it is known for its strong brands like Cresco, High Supply and Good News.

Cresco Labs controls its supply chain from cultivation to retail, offering a wide range of products. While it has its own stores, it focuses heavily on wholesale, getting its products into dispensaries across the country.

Canadian cannabis market

In 2018, Canada became the first G7 nation to legalize adult-use cannabis and create its own streamlined program regulated by both federal and provincial powers. Since then, companies working in the country have faced ups and downs in dealing with tight marketing rules, high tax rates and ongoing competition with the unregulated market.

Canada-based cannabis fund

The Global X Marijuana Life Sciences Index ETF (TSX:HMMJ) was the first cannabis ETF available in Canada, and it holds a variety of publicly traded companies involved in cannabis, along with several non-flower companies.

While HMMJ does not invest in US-based multi-state operators, it does have exposure to the US market through Canadian companies that have interests in the US cannabis industry. Overall, HMMJ is designed to give investors broad exposure to the cannabis industry, with a particular focus on North American companies.

This ETF had a year-to-date loss of 0.32 percent as of December 23 and a price point of C$9.29.

1. Innovative Industrial Properties (NYSE:IIPR)

Company Profile

ETF weight: 15.74 percent
Market cap: US$2.09 billion
Share price: US$70.45

Innovative Industrial Properties is a real estate investment trust that provides specialized real estate opportunities for cannabis companies in 19 states. Its properties mostly consist of processing plants, greenhouses and warehouses, with retail spaces making up a small percentage of its portfolio.

The firm has provided long-term absolute net lease agreements to some of the cannabis industry’s biggest names, including Green Thumb, Tilt Holdings (NEO:TILT,OTCQB:TLLTF), Ascend Wellness (CSE:AAWH.U,OTCQX:AAWH) and Curaleaf. The company’s attractive sale-leaseback program has helped cannabis companies access a source of capital, a much-needed workaround in the US where there are fewer traditional financing options.

2. Jazz Pharmaceuticals (NASDAQ:JAZZ)

Company Profile

ETF weight: 15.05 percent
Market cap: US$7.51 billion
Share price: US$124.25

Jazz Pharmaceuticals is a global biopharmaceutical company focused on developing and commercializing medicines for people with serious diseases, often with limited or no other options. They have a diverse portfolio of products in areas like sleep disorders, cancer and epilepsy.

Jazz Pharmaceuticals' cannabis business stems from their 2021 acquisition of GW Pharmaceuticals and its epilepsy medicine Epidiolex for a whopping US$7.2 billion. This made big waves as it was one of the largest moves by a traditional pharmaceutical company into the cannabis space.

3. Cronos Group (NASDAQ:CRON,TSX:CRON)

Company Profile

ETF weight: 8.03 percent
Market cap: US$768.41 million
Share price: US$2.01

Cronos Group is the Canada-based company behind the Spinach, Peace Naturals and Lord Jones cannabis brands. In Canada, Cronos’ Spinach brand is in the top three for retail sales in the flower, edible and vape categories.

In late 2023, the company re-entered the German medical cannabis market through its partnership with a German medical cannabis company called Cansativa Group, and is positioned to take advantage of potential adult-use legalization in the country. Cronos also serves the Israeli market through its subsidiary Cronos Israel.

4. SNDL (NASDAQ:SNDL)

Company Profile

ETF weight: 4.99 percent
Market cap: US$491.17 million
Share price: US$1.85

SNDL, formerly known as Sundial Growers, is the largest private-sector liquor and cannabis retailer on the Canadian market. They cultivate and sell cannabis products under various brands including Top Leaf, Sundial Cannabis, Palmetto and more. They focus on premium indoor cultivation and have a strong presence in the Canadian market.

SNDL has faced financial challenges in the past, but in Q3 2024 the company's cannabis business saw revenue gains for the 11th consecutive quarter.

5. Canopy Growth (NASDAQ:CGC,TSX:WEED)

Company Profile

ETF weight: 2.68 percent
Market cap: US$366.89 million
Share price: US$2.87

Canopy Growth is a company that’s grown alongside Canada’s cannabis industry. Founded in 2013, it has become one of the largest producers of cannabis in the world, fostering brand deals with celebrities like Martha Stewart and Snoop Dogg.

The company maintains a strong focus on medical cannabis, with a dedicated division called Spectrum Therapeutics, which offers a variety of products and resources for patients seeking cannabis-based treatments.

Don’t forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.