This will be an interesting year for shaping policy at the state level. One thing is for sure, cannabis use is becoming more out in the open across the country and access to the plant is increasing.
The cannabis industry is a journey that keeps evolving, improving, and getting more exciting every year.
I am eternally grateful to have the privilege of being deeply involved with many industry leaders in various sectors of the cannabis industry. Because of this, I am fortunate to have a bird’s eye view of what’s happening. And, as the FlowerHire mission is to build a conscious cannabis community, it is also my mission to share info that I believe will be the most useful to the industry as a whole.
As we continue to sail through the winds of change, making critical decisions to stay true to our course, there are 11 critical dynamics I’m forecasting for the cannabis industry. I’m thrilled to share these insights and predictions with you and I hope they help guide you toward success!
Please note these predictions do not focus on federal change. There has been momentum and progress here, but timing, process, and the impact of any type of final decision on rescheduling or intoxicating hemp is not something I have a crystal ball on. I do expect an increasing amount of activity at the state level around regulations for intoxicating hemp. There will be a ton of attention on hemp as states try to close and or moderate the farm bill-compliant markets within their states.
10 cannabis industry forecasts and insights
1 The return of marketing!
Marketing departments were hit hard in 2022 and 2023 – marketing was not a top priority, so not many companies were spending money on it. This year, companies are starting to feel the need to reinvest in marketing and ramp it up again.
Why? Competition is heating up! In established markets:
- Retailers are looking to drive customer acquisition
- Brands are looking to drive customer loyalty.
- Manufacturers are looking to launch brands in the adult-use marketplace.
Marketers with a data-driven playbook for execution in retail, CPG, or cannabis are definitely in demand. Marketing means different things to different cannabis companies – from data-driven digital strategies to events and partnerships. Whatever the case is, companies are hiring marketing leaders again and investing in marketing.
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2 HEMP HEMP HEMP!
Everybody’s talking about hemp. But we’re not talking about Delta-8 anymore or CBD – we’re talking about The American Relief Act of 2025, the latest update of the Agriculture Improvement Act of 2018 (which we’ll refer to as the farm bill) extended farm bill-compliant markets. These retail stores operate completely outside of adult-use and medical markets. There are dispensaries open across many prohibition states that sell flower, prerolls, vapes, and edibles. This strategy for execution in this market is on the top of mind for everyone who’s been in the industry for a while. In 2024, a lot of edible companies launched the farm bill-compliant market, as well as some multi-state operators (MSOs) like Curaleaf who went all in on hemp in the fall.
Expect this to be a trend. Companies looking to hop on this trend might:
- Hire people who understand the farm bill-compliant supply chain
- Or hiring salespeople to launch in some prohibition states.
A lot of strains test Farm Bill-compliant. Without any changes on the bill until the end of 2025, expect companies to go all-in, trying to sell through farm bill-compliant channels without having to pay 280-E.
3 Cannabis is taking hold in the Conservative South
Texas, Louisiana, Arkansas, Alabama, Mississippi, Florida, and Kentucky all have authorized medical cannabis. Aside from that you are seeing farm bill-compliant markets accelerate across these states. There are cannabis delivery billboards in Nashville, and thousands of dispensaries selling farm billl-compliant THC in Texas.
With existing generally business-friendly regulations, they’re going to be great states to both work in and operate in. Not only does this mean good things for hemp, but it also will help make cannabis more mainstream. You’ll also see THC-infused beverages and direct-to-consumer deliveries happening now through the USPS because of the Farm Bill.
This will be an interesting year for shaping policy at the state level. One thing is for sure, cannabis use is becoming more out in the open across the country and access to the plant is increasing.
4 Cannabis careers will go mainstream
FlowerHire has filled roles in over 30 states. We just onboarded our first client in Kentucky, which is state number 32 for us. With 500,000 people already working in cannabis, and the addition of farm bill-compliant markets, cannabis is a livelihood for more and more people. The likelihood that someone knows someone who works in the industry is much higher now, and it validates it as a career opportunity for people currently looking for work.
There may be more reality TV shows similar to producer Jimmy Kimmel’s popular 2024 television docuseries ‘High Hopes’ about two brothers who operate a cannabis retail outlet in Los Angeles—that will continue to highlight and normalize working in cannabis.
Similar to how cannabis is taking hold in the Bible Belt… Across the entire industry, production facilities tend to be far away from city centers. Those places tend to be more conservative areas. For example, Illinois cities, Lincoln, Barry, and Delavan, are all places that look much different than Chicago and tend to be conservative-leaning. These communities need these jobs and there are 100s of people depending on those jobs.
The economic benefits of legalizing cannabis for small towns
5 New York and Ohio will have the most cannabis job creation
New York. After a rocky start, New York ended the year with 270 dispensaries. That number should get to 500 this year. Large-scale production facilities to operationalize in the Hudson Valley, just north of New York City. Larger production facilities end up hiring hundreds of people.
Ohio. Ohio launched its adult use in November 2023. There are multiple organizations planning to open additional retail areas in 2025. There will likely be another 100-200 retail stores opening by this time in 2026 leading to thousands of jobs.
6 Pennsylvania and Minnesota will gain momentum
Pennsylvania. All signs point to adult use passing in some way. All of Pennsylvania’s neighboring states have passed, and there is overwhelming support for the industry. They have a very established medical market, so job creation won’t be as steep at first. But, adult-use sales should double to triple the size of that market in revenue which will lead to more hiring and jobs.
Minnesota.
Minnesota’s adult-use law went into effect in August 2023 and it’s been a slow rollout for licensing. Minnesota adult use most likely won’t take off until 2026, except for indigenous tribes that are opening up operations. But once the adult-use market takes off, it will be next up for job creation.
7 C-suite roles spike as the industry needs more leadership
In the second half of 2024, we saw an increase in demand for C-suite roles like presidents, CEOs, and executive-level department heads. A lot of companies were hiring C-suite positions in 2021 and early 2022, but there has been a lot of churn since then and companies have been running as lean as possible with trends toward continued founder-led organizations.
These organizations are running super lean at the top, and as the industry stabilizes, we’re seeing renewed interest in recruiting leaders focused on operational execution and financial strategy. Companies are seeking to:
- Level up the skillset of their leadership team
- Create new leadership roles that take on the responsibilities of existing leaders who have been handling multiple roles
At this time in 2025, cannabis companies are much clearer on what they need from executive-level hires. And as the industry accelerates, new states are added, and companies expand, hiring more C-suite executives is essential for company growth.
Cannabis companies are interested in people with industry experience. But cannabis companies also recognize that the right person who will excel in these executive roles, may not have cannabis experience.
Not only will this trend bring individual companies to the next level, but it will bring the entire industry to the next level — and we are so excited about it. Here are 5 benefits of partnering with FlowerHire.
8 Increased focus on LEAN production will make companies more profitable
Wholesale prices have been falling and there is a continuous need for efficiency in the supply chain. Companies with significant production and cultivation capacity – whether vertical or not – are investing in S&OP (Sales and Operations Planning) to keep things lean and have a better forecast for revenues. These companies might want:
- Data specialists who can create a supply chain forecast
- Investment in technology to help with decision-making
- Investment in production leaders who can follow an S&OP plan and drive production facility departments to hit goals
It’s not enough to breed and grow amazing, out-of-this-world cannabis plants – even though good weed will always sell. If you’re running a production environment in cannabis, you’re running a million-dollar business and may have raised tens of millions of dollars. You need the skills to produce great products, but you also need lean manufacturing and operational rigor found in traditional thin-margin CPG manufacturing.
9 Inventory control and merchandising strategy IS a major priority
Margins for retail businesses in cannabis can be very thin. Cannabis companies are looking for effective retail strategies and make more data-based decisions. If a company has multiple retail locations, it will start paying extra attention to which products sell best at which location. You will also see trends toward declining same-store sales in more mature adult use and medical markets. This means inventory management is necessary to stay profitable. Not only that, but on a positive note, cannabis POS systems such as Dutchie, Treez, and Cova really have developed the correct technology for inventory visibility and companies are figuring out how to use this. This might mean:
- Hiring a procurement manager, buyer, and inventory specialist with retail experience
- Analysts can take massive amounts of data from POS (point of sale systems), organize it, and use it to make buying decisions.
- A rise of “revenue” focused directors and VPs that are taking a data-driven approach to purchase, promotions, and driving revenue at the store levels.
Historically, many cannabis companies have made buying decisions based on their network and relationships with brands. While relationships are extremely important and necessary to stay close to your partners, retailers realize they need to make more data-based decisions – data like average time on the shelf and unique store preferences. They need to buy products at the right wholesale price from which they can move and make money.
10 HR will create a purpose-driven culture to increase productivity
In December 2024, FlowerHire hosted the first annual HR summit in Las Vegas. Creating a purpose-driven culture was one of the many things that stood out at the Cannabis HR Leadership Summit.
One of the insights we gained was that companies are starting to take advantage of the purpose-driven nature of the industry, and that trend will continue. With over 500,000 people working in cannabis now consolidation has been leading to larger companies, with more resources for HR systems, programs, and leaders. There is a continuing evolution of the HR function within this industry and standardization on how to train and retain cannabis employees is happening. And HR departments will use purpose to make companies more productive.
Looking to grow or level up your team’s talent in 2025? Reach out to a FlowerHire recruiter