Republican resistance has effectively halted the push for medical cannabis legalization in North Carolina. State House Speaker Tim Moore believes that the opposition from Republican lawmakers has doomed the prospects of passing the Compassionate Care Act in 2023. Despite the state Senate’s approval of the bill, which aimed to provide access to smokable flower for patients with 15 qualifying medical conditions in a tightly regulated market, the House took no further action beyond a committee hearing.

The news story reflects a recurring pattern in North Carolina’s legislative history regarding the push for medical cannabis legalization. North Carolina, like many conservative-leaning states, has traditionally faced challenges in embracing cannabis policy changes due to concerns over public health, law enforcement, and moral considerations.

In recent years, however, there has been an increasing public acceptance of medical cannabis as a viable treatment option for various health conditions. This has led to a shift in public opinion, with a majority of Americans now supporting medical cannabis legalization. Despite this trend, translating public support into legislative action can be difficult, especially in states with conservative political climates.

North Carolina’s struggle with medical cannabis legalization is not unique. In 2021, a similar bill passed the state Senate but failed to advance in the House, illustrating the challenges faced in achieving bipartisan consensus on the issue. This recurring pattern suggests a significant divide within the state’s legislative bodies when it comes to cannabis policy.

State House Speaker Tim Moore’s statement about the bill’s fate reflects the influence of party dynamics within the legislative process. Republican lawmakers, who hold a majority in the House, voiced their opposition to the bill. According to House Republican Caucus rules, a bill must have majority support from members before it can be heard on the floor, making it difficult for the bill to advance. Even if the bill had received support from some Democratic members, Republican opposition would have been the deciding factor.

Despite this setback, there is hope for renewed efforts in the future. Speaker Moore remains optimistic that the issue will be addressed again when the next legislative session begins in May. Proponents of medical cannabis legalization are likely to regroup and strategize during this time, aiming to build broader support and address concerns raised by opponents.

The future of medical cannabis in North Carolina hangs in the balance, as stakeholders continue to engage in discussions, emphasizing the potential benefits for patients and the economic impact of a regulated cannabis market. Proponents will likely highlight the growing body of evidence supporting the therapeutic uses of cannabis and its potential to provide relief for patients with qualifying medical conditions. They may also address concerns raised by opponents, such as implementing strict regulations to ensure safety and prevent abuse.

As the legislative landscape evolves and public opinion continues to shift, the push for medical cannabis legalization in North Carolina may face renewed momentum. It remains to be seen how the issue will unfold in subsequent legislative sessions, but the ongoing dialogue and advocacy efforts indicate a persistent drive to bring medical cannabis access to patients in need.

Source: Mjbizdaily

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Wholesale marijuana flower prices in Michigan have experienced a recent stabilization and slight increase, providing some hope for producers who faced significant price declines in recent years.

Michigan holds a prominent position in the legal marijuana market and is projected to rank as the second-largest state in terms of annual recreational and medical cannabis sales, trailing only California.

Industry experts attribute the modest stabilization in wholesale prices in Michigan to several factors:

1. Absorption of excess outdoor cannabis from the previous season.
2. The increasing number of municipal governments allowing retail sales.
3. Authorities cracking down on illicit activity within the licensed market.

Narmin Jarrous, Chief Development Officer at Exclusive Brands, a vertically integrated cannabis company based in Livonia, Michigan, highlights the negative impact of illegal and non-compliant products being sold at extremely low prices, which can disrupt the market and affect pricing for various cannabis products.

However, other factors continue to exert downward pressure on prices, including significant outdoor production during the warmer months and the absence of a statewide cap on the number of cannabis business licenses, making the sustainability of wholesale price stabilization uncertain.

Michigan wholesale marijuana flower prices – Per pound

Michigan’s adult-use market was launched in December 2019, initially witnessing high prices due to limited supply and growing demand. However, prices have not returned to those levels. According to data from LeafLink, the average per-pound price for flower dropped by 61% to approximately $1,510 by February 2021, fell further by 29% to $1,075 by February 2022, and slipped another 27% year-over-year to $789 by February 2023.

Nevertheless, there has been a recent upward trend in flower prices. The average per-pound wholesale price rose to $832 in April, $907 in May, and $963 in June.

Producers in Michigan vividly recall the rock-bottom prices they faced, with some selling pounds of flower for as low as $400 or $500. These extreme price levels led to cultivators consolidating or shutting down their operations, unable to sustain such low prices.

The supply-demand dynamics in Michigan’s legal cannabis market underwent significant changes. In 2022, legal cannabis retail sales reached $2.3 billion, and the 2023 MJBiz Factbook projects sales to potentially reach $3.1 billion, including $220 million in medical marijuana sales.

Michigan’s lack of a statewide cap on cannabis business licenses resulted in explosive growth in both supply and demand. LeafLink strategist Ben Burstein explains that numerous cannabis retail operations and cultivation licenses were established in early 2020, but it took time for new cultivators to optimize their yields, leading to high wholesale prices initially.

Additionally, the COVID-19 pandemic boosted marijuana sales nationwide, attracting capital investments in Michigan’s legal market. This influx of investment, combined with improved yields and production capacity from existing cultivators, resulted in a surge of supply by late 2021. However, the market did not have enough demand to absorb the outdoor harvest, leading to a significant decline in prices.

The oversupply issue extended to other product formats as manufacturers converted excess flower into cannabis distillate and derivatives.

The recent stabilization and slight increase in Michigan’s wholesale flower prices can be attributed to several factors. The time elapsed since the previous outdoor harvest has allowed for the conversion of excess flower into distillate and its purchase by consumers. The increase in demand, partially due to seasonality and the adoption of retail sales by local governments, has also contributed to the changing price trend.

Narmin Jarrous of Exclusive Brands believes that increased enforcement actions by Michigan’s Cannabis Regulatory Agency (CRA) have played a role in stabilizing prices. The CRA has taken action against operators engaged in illicit conduct, which has negatively affected the market and pricing.

Calyxeum’s CEO, Rebecca Colett, mentions that the drastic price drop was likely caused by illegal activity that the CRA previously overlooked. With a renewed focus on enforcement under the new CRA chief, Brian Hanna, Colett expects more stability in prices.

During the period of declining prices, Michigan’s cannabis producers had to adapt to survive and maintain margins. Cost-cutting measures included installing automated production systems to reduce payroll expenses and seeking new vendors and packaging machinery to lower packaging costs.

Despite the recent positive trends, there are concerns about the future. LeafLink analyst Ben Burstein expects another substantial outdoor harvest later this year, combined with an increase in cultivation and processing licenses issued since last year. This may lead to a surplus of supply relative to demand, potentially driving prices down again.

In response, cannabis producers like Calyxeum remain cautious and focus on operating efficiently to withstand any potential price fluctuations. Colett anticipates a prosperous summer for cultivators due to late-starting outdoor grows and predicts a potential production drought, allowing cultivators to charge premium prices similar to those during the pandemic.

Looking ahead, Jarrous hopes for more stability in the industry as Michigan’s cannabis market matures and producers gain confidence. However, the seasonal nature of cannabis supply in Michigan and the market’s exposure to outdoor production capacity make it likely that prices will start declining again in the future. Calyxeum plans to operate conservatively and improve margins while remaining prepared for any potential challenges in the fall.

Source: Mjbizdaily

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New Frontier Data recently unveiled the first part of their report titled “Cannabis Consumers in America 2023: An Overview of Consumers Today.” This comprehensive study delves into the preferences, behaviors, and beliefs of over 4,300 adult cannabis consumers, as well as the perspectives of more than 1,100 non-consumers regarding potential cannabis use and their opinions about the plant.

Among the survey’s findings, one aspect that stood out was the enduring importance of cannabis as a medical remedy. This significance extends not only to current consumers who rely on cannabis for improved well-being, but also to its role in legitimizing the plant among those who do not consume it.

The survey revealed that 42% of adults in the United States have either used cannabis or are likely to use it in the future. Furthermore, 37% of U.S. adults fall into the category of “current consumers,” indicating that they use cannabis at least once a year and plan to continue doing so.

Interestingly, there has been a slight increase in the percentage of U.S. adults who identify as cannabis consumers compared to last year. Concurrently, the proportion of adults who claim they will never consume cannabis has slightly decreased from 34% to 30%. These findings suggest a gradual shift in societal attitudes towards cannabis, possibly driven by reduced stigma and broader legal accessibility.

Cannabis consumers’ openness about their use—and their success in managing medical conditions with cannabis—has affected the broader narrative about the drug.

The openness displayed by cannabis consumers regarding their use and the positive impact of cannabis in managing various medical conditions have influenced the overall perception of the drug. Notably, the majority of current consumers, approximately 70%, perceive their cannabis use as having at least some medical purpose. Among them, 15% exclusively use cannabis for medical reasons, 28% primarily for medical purposes, and 25% primarily for recreational enjoyment, with some medical benefits as well.

Remarkably, 94% of self-identified medical consumers reported that using cannabis has had a positive effect on their medical conditions or symptoms. Over half of them, 55%, experienced significant improvements in their well-being.

While cannabis patients have long appreciated these medical benefits, the recent shift in societal acceptance has allowed consumers to openly discuss their cannabis use with friends, family, and even coworkers. Surprisingly, 48% of consumers stated that their colleagues were aware of their cannabis consumption.

As cannabis becomes destigmatized, individuals are increasingly sharing their positive medical experiences with their social circles. This personalized counternarrative challenges the prohibitionist messaging based on propaganda prevalent during the past few decades.

Non-consumers, on the other hand, find medical reasons to be the most persuasive when considering cannabis use. Exposure to the positive experiences of loved ones using medical cannabis, coupled with the widespread legalization of cannabis for medical purposes in numerous states, has contributed to the plant’s legitimacy as medicine in the eyes of non-consumers. Many non-consumers would be open to trying cannabis if they were suffering from a medical condition that could potentially benefit from it or if it were recommended by a healthcare professional.

While the legal cannabis industry predominantly focuses on the adult-use market, it is crucial to keep medical cannabis at the forefront. Medical cannabis offers relief to millions of consumers who have had limited success with alternative remedies. Additionally, medical cannabis garners compassion and support from non-consumers who recognize its value in promoting health and well-being.

Source: New Frontier Data

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New Frontier Data presents the 2023 archetypes of cannabis consumers in America. The report highlights nine consumer archetypes based on the latest consumer survey data.

The first archetype is Savvy Connoisseurs, comprising 13% of consumers. They are heavy cannabis users who consume it multiple times a day for various medical and recreational purposes. They obtain cannabis from both legal sources like dispensaries and informal channels such as friends or illicit dealers. Savvy Connoisseurs are the highest spenders and often purchase cannabis weekly.

The second archetype is Contemporary Lifestylers, representing 16% of consumers. They primarily use cannabis recreationally to relax. They prefer smokable cannabis but also try non-smokable products occasionally. All Contemporary Lifestylers live in states where cannabis use is legal and rely on regulated sources like dispensaries. They are moderate-to-high spenders and frequently acquire cannabis.

The third archetype, Medical Lifestylers, makes up 12% of consumers. They are frequent cannabis users who primarily use smokable products but occasionally explore edibles or other non-smokable forms. Medical Lifestylers consume cannabis for medical reasons, such as pain management or treating medical conditions. They mainly obtain cannabis from legal dispensaries and delivery services. Medical Lifestylers are the second-highest spenders after Savvy Connoisseurs.

The fourth archetype, Legacy Lifestylers, represents 13% of consumers. Like other Lifestyler archetypes, Legacy Lifestylers are frequent cannabis consumers who predominantly smoke cannabis for recreational purposes. However, they live in states where cannabis is illegal or are unregistered patients in medical-only states, limiting their access to legal dispensaries. Therefore, they primarily rely on friends and illicit dealers for their cannabis supply. Legacy Lifestylers acquire cannabis with similar frequency as their legal counterparts and spend only slightly less per purchase.

The data highlights changes in consumer distribution among the archetypes compared to the previous year. The Legacy Lifestyler archetype has decreased from 16% to 13% due to the expansion of legal access to cannabis in several states. As more states legalize cannabis, Legacy Lifestylers are expected to transition into the Contemporary and Medical Lifestyler archetypes based on their medical or recreational goals. Over time, exposure to a wider range of legal cannabis products may lead them to prefer non-smokable options and potentially shift to other archetypes.

The Savvy Connoisseur archetype has also reduced in size from 18% to 13%, potentially influenced by new consumers entering the market and pandemic-related changes in consumption habits. Consumers in newly legal markets may have established their preferred products and routines, requiring less experimentation. As cannabis becomes more mainstream, the need to educate friends about new products or procure products for social circles may also decrease.

For effective communication with these consumer segments, the article suggests reaching out to NXTeck’s B2C division, which specializes in delivering targeted digital campaigns in the cannabis industry. NXTeck offers audience targeting, analytics, and attribution reporting based on location, point-of-sale, and social science data, utilizing the industry’s largest cannabis and CBD consumer audience dataset.

For further information on the consumer archetypes, the complete report will be released next month. For inquiries, contact NXTeck via email at sales@nxteck.com.

Source: NewFrontierData

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