If you had a hunch the cannabis industry was thriving, but needed the data to back up your claim, a recent report from Carnegie Mellon University would do the trick. The report used data collected over 40 years from more than 1.6 million people in the United States, and its most recent survey found more daily and near-daily users of cannabis than alcohol. The numbers were 17.7 million people using cannabis daily or near-daily to 14.7 million drinking alcohol in 2022, the year from which the most recent data was available. In 1992, for example, it was 8.9 million daily or near-daily users of alcohol versus 0.9 million for cannabis. The report concludes, “Long-term trends in cannabis use in the United States parallel corresponding changes in cannabis policy, with declines during periods of greater restriction and growth during periods of policy liberalization.”
With momentum building to change the legal status of cannabis nationwide, those numbers could grow even more. Here’s where those efforts stand, the impact that could have on the industry, and why your organization needs an analytics solution to stay competitive.
Rescheduling timetable
In Spring 2024, the Drug Enforcement Administration (DEA) held a public comment period for stakeholders to make their cases for or against a change in cannabis’ classification. Cannabis is currently a Schedule I substance, and the DEA would propose cannabis be rescheduled as Schedule III of the Controlled Substances Act. Almost 43,000 comments were submitted from the likes of both cannabis industry and anti-legalization activists, state regulators, medical professionals, researchers, and law enforcement officials.
The next step is for the proposal to move forward to a hearing in December, but it could still be a long time before any action is taken. The hearing itself could take months, and then a report would need to be compiled following the hearing’s completion.
Potential benefits of rescheduling
In some ways it can be hard to imagine the differences in the industry if cannabis takes a step closer to legalization. Schedule I drugs are, by definition, “drugs with no currently accepted medical use and a high potential for abuse.” There are researchers who are limited in what they can do as they explore further potential medical benefits of marijuana under the current restrictions. The move to Schedule III could open up new possibilities when it comes to investigating the drug’s abilities to treat chronic health conditions.
For the small businesses making their way in the industry there are also new possibilities that open up when it comes to banking and tax deductions. The IRS doesn’t allow deductions for businesses involved with Schedule I or II controlled substances. With some positives, though, comes a negative for small businesses – once cannabis is legal at the federal level, the big cannabis businesses that have been limited by a prohibition on interstate cannabis commerce will likely take over the industry in a way that they haven’t yet been able to.
How analytics can help businesses
With all of this happening, there is a lot of uncertainty on the horizon for many cannabis companies. Not only is there a big question mark surrounding whether or not the government makes any moves at all, the timing of the results is unpredictable. The only thing businesses can do is control the aspects of the industry that they have the ability to control.
One important aspect is analytics. With the right analytics solution, an organization can get meaningful insights into how its business is performing. Through every step of the process, from cultivation to distribution to sales, analytics can make sure you’re getting the data you need to make the important decisions that can keep you competitive during an uncertain time in the industry. Data can help you stay on top of the current rules and regulations in your state, and a flexible solution will ensure that when the laws are changed, your data will still be reliable and your organization won’t miss a beat.
It’s an exciting time in the cannabis industry, but it can be equally unsettling. Organizations need to stay alert about the adjustments they might need to make with any changes that may happen. The only way they can do that is with an analytics solution that can take the data and make it easy to understand and act upon.
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