Week’s In Review: Cannabis Industry Poised for $112 Billion Impact in 2024; New York Opens Applications for $5 Million Cannabis-Funded Community Grants Program; Tennessee Introduces New Regulations for Hemp Product Sales

LOS ANGELES–Welcome to the far too-exciting world of cannabis and psychedelics, where it’s a tale of two markets with some states doing amazingly well. And some, well…they’re not doing so well (hello New York). Let’s get to it! 

Cannabis Industry Highlights

1#Cannabis Industry Poised for $112 Billion Impact in 2024: The cannabis financial market has been showing signs of both growth and challenges in 2024. The U.S. cannabis industry is projected to contribute $112.4 billion to the economy by the end of the year, with a continued upward trajectory expected through 2030. Despite lingering federal restrictions, the industry has seen strong revenue generation, particularly from new markets and ongoing legalization efforts across various states.

2# New York Opens Applications for $5 Million Cannabis-Funded Community Grants Program: New York State has opened applications for a $5 million Community Reinvestment Grants program, funded by cannabis tax revenue. This initiative is designed to support areas that have been disproportionately impacted by past drug enforcement policies. Administered by the Office of Cannabis Management (OCM), the program will offer individual grants of $100,000 to address community needs, including housing, mental health services, workforce development, and childcare.

3#Tennessee Introduces New Regulations for Hemp Product Sales: Tennessee regulators have introduced significant new rules for the sale of hemp-derived cannabinoid (HDC) products, which are set to take full effect on December 26, 2024. These regulations, overseen by the Tennessee Department of Agriculture, establish stricter guidelines for businesses involved in the production, distribution, and retail of hemp products, including Delta-8, Delta-10, and THCa products.

4# 2024 Presidential Candidates Outline Contrasting Visions for Cannabis and Psychedelics Reform: The 2024 presidential election is showcasing a diverse range of positions on cannabis and psychedelics reform, reflecting the evolving landscape of U.S. drug policy. Prominent candidates across both parties have taken varying stances, focusing on issues such as medical access, criminal justice reform, and veterans’ care.

5#Germany’s Medical Cannabis Market Set to Reach €420 Million in 2024: Germany’s medical cannabis market is poised for substantial growth in 2024, with sales projected to surpass €420 million ($455 million), according to a report by Prohibition Partners. The country, which has led Europe in medical cannabis since legalizing it in 2017, continues to expand patient access, with over 200,000 registered users and public healthcare covering cannabis prescriptions obtained through pharmacies

Psychedelic Sector Update

6#Psychedelics Market Sees Growth Amid Regulatory and Investment Shifts: The psychedelics market in the U.S. is witnessing rapid expansion, driven by both regulatory advancements and increasing investor interest. The sector, valued at approximately $603.1 million in 2024, is projected to grow at a compound annual growth rate (CAGR) of 7%, with expectations of reaching $1.18 billion by 2034. This growth stems largely from the rising interest in psychedelics as treatments for mental health conditions such as post-traumatic stress disorder (PTSD), treatment-resistant depression, and addiction.

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