3 Cannabis Industry Trends in 2025
Key Takeaways
- 280E Tax Reform Impact: Anticipated reforms to Section 280E could significantly ease the tax burden on cannabis businesses, allowing them to deduct marketing and operational expenses. This presents a major opportunity for brands to invest in their growth and stay competitive.
- Hemp-Derived THC as a Marketing Tool: Hemp-derived THC products will continue to play a vital role in cannabis marketing, leveraging social media loopholes for broader reach. These products allow brands to expand their e-commerce presence without the need for dispensary sales.
- Community-Driven Niche Branding: Successful cannabis brands will focus on defining their values and building community beyond just cannabis products. Engaging with consumers on lifestyle aspects and purpose-driven initiatives will be crucial for brand differentiation and loyalty.
Here we are heading into 2025 full steam ahead. There’s no doubt that cannabis news from 2024 will shape the cannabis industry trends for 2025. But how? Let’s look at 2025 3 cannabis industry trends in 2025 to watch.
Be Ready for 280E Tax Reform
A key cannabis industry trend in 2025 is 280E. The scuttle is that 280E could ease the cannabis taxation nightmare in 2025. This could happen retroactively, which would be an enormous relief for the cannabis industry. Cannabis marketing and advertising, like cannabis PR and trade shows and conferences, are among the expenses that cannabis businesses will finally be able to write off. From cannabis crisis management to cannabis PR for venture funding, this tax reform will spark perhaps the biggest green rush since the first adult recreation laws were approved in Colorado, Oregon, California, and Washington. If you aren’t ready with a plan to pull when this happens, you may find yourself behind against your competitors. The time for positioning is before 280E is eliminated.
This is a particularly big opportunity for cannabis brands and dispensaries. It will give consumer cannabis brands a chance to invest in their brand, from cannabis public relations to e-comm. Speaking of e-comm…
Hemp-Derived THC Will Continue To Be a Marketing Lever
Hemp-based products aren’t going away, and there will continue to be innovations in hemp products outside of CBD. While states and even the federal government wrestle with D-9 and hemp-based THC products, many brands will continue onward with hemp-based products simply for the cannabis social media marketing and advertising loophole that gives brands national reach and the earliest step towards becoming household names. If social media shuts this down, then hemp-based THC products will continue to be an attractive brand extension and cannabis industry trend in 2025 since they don’t have to be sold in dispensaries and can support e-commerce operations, which are likely to grow in the near future.
Niche Cannabis Brands Will Create Community Beyond Cannabis
Cannabis brands that clearly know who their customers are and how to talk to and activate them will thrive. Because cannabis products are so similar, it will be more important than ever to clearly articulate your cannabis brand values and personality. From sustainability to purpose-driven initiatives, it won’t be enough to SAY you do; you will need to DO as you say you do.
Plus, more cannabis companies will need to meet their customers where they are. There are still a lot of cannabis-curious or light cannabis users who don’t self-identify as a cannabis user any more than they would as alcohol drinkers. Cannabis brands tapping into the lifestyle of their customers will find they
Cannabis Recalls Will Become More Common
As state regulators learn to better protect consumers from bad actors in the cannabis industry, cannabis recalls will become more common. Cannabis recalls won’t necessarily be a cannabis media crisis; of course, if you’re one of the bad actors, it WILL be a media and legal crisis. But in any case, if your cannabis has brand value, the insurance against damage planning for a crisis is in advance.
Digital Marketing and Digital PR Will Get Creative
From websites with e-comm to digital PR, as cannabis regulations become clearer, cannabis companies will need to take their digital brand seriously. Digital PR will be a cannabis industry trend in 2025.
It’s never too late to start, but be ready for legalization by ensuring you have active and dynamic owned content, inbound links, and social media. This includes actively looking for speaking engagements, sponsorships at cannabis events, and non-cannabis events. One thing cannabis companies can do right now is use either hemp-derived products or other non-cannabis products to establish e-commerce.
Reliance on industrial cannabis websites like Weedmaps is wearing thin, so support cannabis industry publications with creative activations and ad buys that drive people to your cannabis company’s website. And invest in cannabis industry SEO now. Google isn’t exactly repressing cannabis content, but it is still restricting cannabis advertising. Familiarize yourself with Google’s latest updates so you’re on top of your digital presence and ready to make the inevitable changes.
No matter where your cannabis brand is headed in 2025 and beyond, hiring a cannabis PR firm will accelerate your goals and get you in the right direction. For experienced and creative cannabis public relations, please contact us. We’d be happy to discuss the ways your cannabis brand can 2X, 3X or even 5X its growth with PR.
