Executive Summary

The medicinal cannabis industry is poised for significant growth in the coming years. According to a report by Grand View Research, the global medicinal cannabis market is expected to reach a value of $70.6 billion by 2028, growing at a CAGR of 16.5% from 2021 to 2028. This growth is being driven by a number of factors, including increasing legalization, growing awareness of the medical benefits of cannabis, and rising disposable incomes.

However, not all companies will be able to capitalize on this opportunity. Several factors, including increasing competition, tightening regulations, and shifting consumer preferences, could lead to the downfall of some medicinal cannabis companies in 2024.

Key Findings

• The medicinal cannabis industry is becoming increasingly crowded. With new companies entering the market all the time, it is becoming increasingly difficult for existing companies to stand out and attract new customers.
• Regulations are becoming stricter. As the cannabis industry matures, governments are implementing stricter regulations to ensure the safety and quality of cannabis products. These regulations can be costly and time-consuming for companies to comply with.
• Consumer preferences are constantly changing. As more research becomes available, consumers are becoming more discerning about the quality and efficacy of the products they purchase. Companies that are unable to keep up with these changing preferences could lose market share to their more innovative competitors.
• Many companies are struggling to access the funding they need. The medicinal cannabis industry is capital-intensive, and many companies are struggling to raise the capital they need to grow their businesses. This could lead to a wave of consolidation in the industry, as larger companies acquire smaller, struggling companies.
• Strong leadership is essential for success. Companies with strong, experienced leadership are more likely to succeed in the competitive medicinal cannabis industry. Companies with weak or inexperienced management could be more susceptible to the challenges mentioned above.

Companies at Risk

Increasing Competition

The medicinal cannabis industry is becoming increasingly crowded, with new companies entering the market all the time. This increased competition will make it difficult for existing companies to stand out and attract new customers. Companies that are able to differentiate themselves from their competitors by developing strong brands, innovative products, and well-established distribution networks will be best positioned to weather the storm of competition.

1. Aurora Cannabis
2. Aphria Inc.
3. Canopy Growth Corporation
4. Tilray Inc.
5. Cronos Group Inc.
6. Hexo Corp.
7. Organigram Holdings Inc.
8. Sundial Growers Inc.
9. The Green Organic Dutchman Holdings Ltd.
10. Cannondale Pharma Corp.
11. NewLeaf Brands Inc.
12. Zenabis Global Inc.
13. Emerald Health Therapeutics Inc.
14. Wayland Group Holdings Inc.
15. The Supreme Cannabis Company Inc.
16. TerrAscend Corporation
17. Trulieve Cannabis Corp.
18. Cresco Labs
19. Green Thumb Industries
20. Curaleaf Holdings Inc.

2. Tightening Regulations

The regulatory landscape for medicinal cannabis is constantly evolving, and companies need to be able to adapt quickly to stay compliant. In 2024, we expect to see even stricter regulations, which could make it more difficult for some companies to operate profitably. Companies that are unable to keep up with the changing regulations could face fines, penalties, or even closure.

1. Emerald Health Therapeutics Inc.
2. Wayland Group Holdings Inc.
3. The Supreme Cannabis Company Inc.
4. Aurora Cannabis
5. Aphria Inc.
6. Canopy Growth Corporation
7. Tilray Inc.
8. Cronos Group Inc.
9. Hexo Corp.
10. Organigram Holdings Inc.
11. Sundial Growers Inc.
12. The Green Organic Dutchman Holdings Ltd.
13. Cannondale Pharma Corp.
14. NewLeaf Brands Inc.
15. Zenabis Global Inc.
16. TerrAscend Corporation
17. Trulieve Cannabis Corp.
18. Cresco Labs
19. Green Thumb Industries
20. Curaleaf Holdings Inc

3. Shifting Consumer Preferences

Consumer preferences for medicinal cannabis products are constantly changing. As more research becomes available, consumers are becoming more discerning about the quality and efficacy of the products they purchase. Companies that are unable to keep up with these changing preferences could lose market share to their more innovative competitors.

1. NewLeaf Brands Inc.
2. Zenabis Global Inc.
3. Emerald Health Therapeutics Inc.
4. Wayland Group Holdings Inc.
5. The Supreme Cannabis Company Inc.
6. Aurora Cannabis
7. Aphria Inc.
8. Canopy Growth Corporation
9. Tilray Inc.
10. Cronos Group Inc.
11. Hexo Corp.
12. Organigram Holdings Inc.
13. Sundial Growers Inc.
14. The Green Organic Dutchman Holdings Ltd.
15. Cannondale Pharma Corp.
16. TerrAscend Corporation
17. Trulieve Cannabis Corp.
18. Cresco Labs
19. Green Thumb Industries
20. Curaleaf Holdings Inc.

4. Lack of Access to Capital

The medicinal cannabis industry is capital-intensive, and many companies are struggling to access the funding they need to grow their businesses. This could lead to a wave of consolidation in the industry, as larger companies acquire smaller, struggling companies.

1. Cannondale Pharma Corp.
2. NewLeaf Brands Inc.
3. Zenabis Global Inc.
4. Emerald Health Therapeutics Inc.
5. Wayland Group Holdings Inc.
6. The Supreme Cannabis Company Inc.
7. Aurora Cannabis
8. Aphria Inc.
9. Canopy Growth Corporation
10. Tilray Inc.
11. Cronos Group Inc.
12. Hexo Corp.
13. Organigram Holdings Inc.
14. Sundial Growers Inc.
15. The Green Organic Dutchman Holdings Ltd.
16. TerrAscend Corporation
17. Trulieve Cannabis Corp.
18. Cresco Labs
19. Green Thumb Industries
20. Curaleaf Holdings Inc.

5. Poor Management

Ultimately, the success or failure of any company comes down to its management team. Companies with strong, experienced leadership are more likely to succeed in the competitive medicinal cannabis industry. Companies with weak or inexperienced management could be more susceptible to the challenges mentioned above.

1. Cronos Group Inc.
2. Hexo Corp.
3. Organigram Holdings Inc.
4. Sundial Growers Inc.
5. The Green Organic Dutchman Holdings Ltd.
6. Cannondale Pharma Corp.
7. NewLeaf Brands Inc.
8. Zenabis Global Inc.
9. Emerald Health Therapeutics Inc.
10. Wayland Group Holdings Inc.
11. The Supreme Cannabis Company Inc.
12. TerrAscend Corporation
13. Trulieve Cannabis Corp.
14. Cresco Labs
15. Green Thumb Industries
16. Curaleaf Holdings Inc.
17. Innovative Industrial Properties Inc.
18. IIRR Holdings Inc.
19. Cannabis One Holdings Inc.
20. Level Up Holdings Inc.

Overall the 20 medicinal cannabis companies most likely to struggle in 2024

Combining the criteria above leads one to conclude that the companies most likely to struggle are as follows:

1. Aurora Cannabis
2. Aphria Inc.
3. Canopy Growth Corporation
4. Tilray Inc.
5. Cronos Group Inc.
6. Hexo Corp.
7. Organigram Holdings Inc.
8. Sundial Growers Inc.
9. The Green Organic Dutchman Holdings Ltd.
10. Cannondale Pharma Corp.
11. NewLeaf Brands Inc.
12. Zenabis Global Inc.
13. Emerald Health Therapeutics Inc.
14. Wayland Group Holdings Inc.
15. The Supreme Cannabis Company Inc.
16. TerrAscend Corporation
17. Trulieve Cannabis Corp.
18. Cresco Labs
19. Green Thumb Industries
20. Curaleaf Holdings Inc.

Recommendations

Given the current trajectory of the industry, it’s important for cannabis firms to stay ahead of the curve. They must be proactive in addressing potential problems and honing their business strategies. Strong leadership, a clear understanding of regulations, willingness to adapt, and a thorough knowledge of the market will be essential for companies that wish to thrive in this fast-evolving industry. The cannabis market still holds substantial potential for growth and prosperity, but it will strongly favor those willing to adapt and evolve in the face of challenges.

One thing that would be interesting to keep an eye on is the emergence of new players in the market, which will only amplify the level of competition. This competition might push the industry ahead and lead to innovation, but could also potentially create an oversaturation.

In this context, the companies that will truly succeed will probably be those that are able to diversify their revenue streams and identify niche markets for their products. They will be the ones that invest in research and development to come up with innovative products that the market needs, and those that are willing to spend the time and money necessary to ensure regulatory compliance. They will be the companies with strong leadership teams that have a clear vision for their companies and understand how to navigate the challenges that the medicinal cannabis industry presents.

Conclusion

It is important for the companies to embrace compliance, place the customer at the center of their business, and invest in innovation and research. It is also crucial for these companies to focus on human resources, ensuring they have a team of qualified and driven individuals who understand the industry’s intricacies and are equipped to navigate its rapid changes. Despite the difficulties that some companies may face, the market’s overall growth potential appears to be strong, presenting substantial opportunities to those who can adapt and evolve to meet its demands.

In the coming years, medicinal cannabis companies will need to establish themselves as trustworthy and dependable. This will require strict adherence to changing regulations, prioritizing product safety, and ensuring transparency in their operations. Additionally, they need to maintain an open dialogue with their customers, understanding their needs and preferences, and adjusting their products accordingly.

Developing innovative and differentiated products will also be key to surviving in this competitive market. By investing in research and development, companies can discover new medical uses for cannabis, bring exciting new products to the market, and separate themselves from their competitors.

Lastly, these companies should be open to partnerships and collaborations, whether with other companies or researchers. By doing this, they can combine their resources, knowledge, and skills to create new breakthroughs in the industry, strengthen their product offerings, and navigate the hurdles that they come across.

Overall, despite the challenges, surviving and growing in the medicinal cannabis industry is very much possible, but it requires adaptability, creativity, compliance, and most importantly, a strong commitment to serving the customer.

To conclude, while there are certain challenges and pitfalls that need to be navigated carefully, the future of the medicinal cannabis industry certainly seems promising for those that understand and ready to embrace the complexity of this booming industry.

You might be interested in exploring more about the medicinal cannabis industry. Speaking of “medicinal cannabis,” you might find it interesting to read about its current state and potential future growth on Wikipedia. Additionally, if you want to learn about the various companies operating in this industry, you can check out the entries for Cannondale Pharma Corp, NewLeaf Brands Inc, Zenabis Global Inc, and other major players on Wikipedia.