Market Size and Demographic Shifts
The legal cannabis market in the United States reached an estimated 33.6 billion dollars in total sales for 2023, according to a report from Forbes. This growth is partly driven by an aging population, where a significant percentage of older adults now report past-month cannabis use. The demographic known colloquially as the "old man smoking weed" segment is expanding the product categories beyond flower, with a strong preference for edibles, tinctures, and low-THC formulations.
Arcview Market Research and BDSA data show that the 55-and-older age bracket is one of the fastest-growing consumer segments in legal adult-use markets. This shift is changing brand strategies, with companies launching products specifically designed for senior consumers, focusing on dosage clarity and functional benefits like sleep and pain relief rather than high-THC intoxication.
Legal and Regulatory Landscape
As of 2024, 38 states and the District of Columbia have legalized medical cannabis, while 24 states plus D.C. have legalized adult recreational use. Federal law still classifies cannabis as a Schedule I substance under the Controlled Substances Act, creating a conflict that the SEC has addressed in guidance for publicly traded cannabis companies. The Rohrabacher–Farr amendment continues to restrict the Department of Justice from using funds to interfere with state medical cannabis programs.
The legal status directly impacts how financial institutions serve the industry, with many older investors accessing the market through private equity and state-chartered credit unions rather than traditional banks. The SAFE Banking Act, which has passed the House multiple times but not the Senate, aims to provide a legal pathway for cannabis-related businesses to access basic financial services without federal penalty.
Investment and Corporate Landscape
Public Companies and Market Performance
Tilray Brands, Inc. (TLRY) and Curaleaf Holdings, Inc. (CURLF) are among the largest publicly traded cannabis companies by market capitalization, with Tilray's stock price reflecting the broader volatility of the sector. The industry has seen a wave of mergers and acquisitions, with multi-state operators consolidating to achieve economies of scale as the market matures. Investment from traditional consumer goods and tobacco conglomerates has accelerated, with major tobacco companies acquiring cannabis brands in Canada and Europe.
Private market valuations have cooled from the speculative highs of the late 2010s, with a focus on companies demonstrating positive adjusted EBITDA and efficient supply chains. The Forbes analysis notes that institutional capital remains cautious, waiting for federal rescheduling or descheduling actions that would unlock access to capital markets and allow for standard business deductions under the tax code.