Ohio, Florida and hemp rising stars of cannabis industry

LAS VEGAS – While California and Michigan engaged in a yearlong battle for sales leader among regulated marijuana markets, much of the biggest cannabis news in 2024 came from Ohio and Florida.

That’s according to MJBizCon “State of the Industry” panelist Marcia Pledger, a veteran business journalist and the director of the Florida chapter of Minorities for Medical Marijuana.

Ohio marijuana regulators made good on their promise to stand up an adult-use market ahead of a September deadline, with some retailers opening their doors to adult-use customers on Aug. 6.

And, as of Dec. 2, licensed marijuana retailers in Ohio had conducted more than 2.5 million adult-use transactions worth $191.3 million.

“People are optimistic about Ohio, but there are definitely some challenges; it’s a slow rollout,” Pledger said, adding that operators who converted their licenses from medical-only to serve the adult-use marijuana market “thought there would be a lot more sales.”

Pledger cited two potential reasons for a slower-than-expected start:

• More than 100 municipalities in Ohio have banned marijuana operators.
• Some of Ohio’s biggest population centers are within driving distance of Michigan, where the maturing adult-use market has some of the nation’s lowest marijuana retail prices.

“We’re next door to Michigan, and Michigan is going gangbusters,” Pledger told the MJBizCon audience at the Las Vegas Convention Center.

“A lot of people are coming from Ohio because it’s cheaper.”

Florida down, not out

Pledger noted that about the same percentage of voters responsible for legalizing a state-regulated, recreational marijuana market in Ohio also voted in favor of Florida’s Amendment 3.

But because Florida requires a 60% majority to pass a constitutional amendment, the heavily funded measure did not pass.

“It is a real reminder that everything region by region is so different,” Pledger said, pointing out that there are 700 medical marijuana dispensaries in Florida compared with a little more than 120 licensed retailers in Ohio.

And just because the state will not see an adult-use market launch as a result of the 2024 election, Pledger believes there is nowhere to go but up for the nation’s largest medical marijuana market.

Those seeking evidence need look no further than the Florida Office of Medical Marijuana Use, which last week approved 22 applicants for new Medical Marijuana Treatment Center licenses.

“With medical alone, the market is worth $2.5 billion,” Pledger said of Florida’s state-regulated marijuana industry.

“It’s the nation’s second-largest market in terms of revenue.”

Intoxicating hemp

Hemp-derived THC was one of the biggest growth areas for cannabis operators in 2024, according to MJBizDaily reporter Chris Casacchia, who covers retail and brands, with many licensed marijuana companies dipping a toe in the hemp space.

“Folks in a lot of states like these products, so you’re going to have an appetite for hemp-derived products – especially in states that are not recreational,” he said.

The growing industry is especially notable as states continue to ban or restrict hemp-derived THC, THCA flower and other intoxicating hemp products.

In September, California Gov. Gavin Newsom signed emergency regulations to prohibit the sale of 95% of hemp products being sold in the state.

Meanwhile, Casacchia noted that several intoxicating beverage companies have moved their operations to Minnesota, where regulators licensed hemp companies ahead of the state’s adult-use marijuana market launch next year.

“Minnesota is bringing in hemp-derived THC as part of their overall structure – we have not seen that in other markets,” he said.

But while Casacchia believes “there’s plenty of runway for these companies,” MJBizDaily political reporter Chris Roberts said federal lawmakers have gotten wise to the “hemp loophole” created by the legalization of industrial hemp production in the 2018 Farm Bill.

“It does seem both parties recognize the THCA loophole, and they weren’t trying to make intoxicated products from the 2018 Farm Bill,” Roberts said, predicting there could be “a potential reckoning for hemp at the federal level.”

What’s next?

In addition to Minnesota, Delaware is expected to launch an adult-use market in 2025, while regulators in Kentucky are preparing to roll out a medical marijuana program.

The failure of Amendment 3 in Florida is considered a signal by many industry stakeholders that further legalization through state legislatures and ballot measures could be difficult.

Still, Pennsylvania Gov. Josh Shapiro has pushed state lawmakers to legalize recreational marijuana, while North Carolina Gov. Roy Cooper has indicated he would sign a medical marijuana bill if one reaches his desk.

“Another market to look at possibly going green is Hawaii,” Casacchia said.

“I believe that will be brought up again next session.”

More information about other events happening at MJBizCon is available here.

Kate Lavin can be reached at kate.lavin@mjbizdaily.com.

Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.

Chris Casacchia, Chris Roberts, Omar Sacirbey and Tess Woods contributed to this report.