News

Innovation conquers regulations in American cannabis market

Published on June 4, 2026 by Pat Bulmer

Photo: Adobe Stock/the oz.

Innovation is helping to drive the American cannabis market forward, even while competing and restrictive regulations from state to state slow it down, a new report says.

The US market will grow almost four times from US$11.73 billion in 2025 to $40.41 billion by 2034, Dublin-based Research and Markets says in its “United States Cannabis Market Report by Source, Derivatives, End Use, States and Company Analysis 2026-2034.”

Cannabis is widely accepted in the U.S., even though the federal government and some states still think it’s a bad thing.

“According to Pew Research Center, ‘About nine-in-ten U.S. adults say that marijuana should be legal for use for medicinal and recreation purposes’,” Research and Markets said in a news release.

“Innovations in product categories such as edibles, beverages, concentrates, pre-rolled products, topicals, and vapor products are changing the face of the cannabis industry,” the release said. “New products are attractive to customers who do not want to consume through the commonly used inhalation methods, thus increasing the base of customers.”

Still, good old flower is No. 1: “The flower segment remains the biggest and most established within the U.S. marijuana market,” Research and Markets said. “New genetics from breeders are constantly being introduced with improved potency, aroma, and flavor profiles, ensuring that the flower segment remains fresh and competitive.

“Notwithstanding the growth of the edible and vape sectors, the flower sector’s popularity has been attributed to its usability for both smoking, vaporizing, and infusing.”

Medical cannabis is more widely accepted than recreational uses in some circles: “The medical marijuana industry remains on a growth trajectory with increased acceptance by doctors and patients alike in recognizing marijuana as a legitimate treatment alternative … The development of micro-dosed, fast-acting, and functional versions is making the product more appealing to customers who want wellness.”

Different regulations from state to state continue to be a problem and the fact marijuana is still banned federally continues to hamper the industry.

“It is still illegal on a federal level in the USA, making for a complicated nationwide set of regulations that vary from state to state. Every state imposes different guidelines on licensing, growing, packaging, strength, taxes, and transportation, making it hard for businesses to expand nationwide.

“Inter-state trade is still illegal, making businesses set up unnecessary facilities in every state.”

“Additionally, lack of federal regulation means limited use of bank services, making businesses operate on a lot of cash, which is not only a safety problem but also a regulatory compliance nightmare.”

The report says high local taxes in some areas keep the illicit market thriving.

“High state and local pot taxes drive up retail prices, making it more expensive to buy legal weed compared to what can be obtained from illegal sources. This price discrepancy keeps the illegal markets afloat … On the other hand, overproduction in some states has pushed wholesale prices downward, making it no longer profitable to grow, make, and, most importantly, sell weed.”

The report looks at some of the big players in the industry including Canadian companies Canopy Growth, Tilray, Aurora and Organigram.

You can buy the 200-page report for as little as US$3,500.