Cannabis, Holidays, and the Dreaded 'C' Word (No, Not That One): The State of the Industry in Seasonal Flux

Cannabis, Holidays, and the Dreaded 'C' Word (No, Not That One): The State of the Industry in Seasonal Flux

F** Holidays. That’s right, I said it. Every year, we get sucked into the sales frenzy—Halloween, Thanksgiving, Christmas, New Year’s—all in the relentless pursuit of… what, exactly? Financial growth? Industry “progress”? If this Halloween taught us anything, it’s that these holiday sales aren’t always what they’re cracked up to be, especially for cannabis retailers who might end up feeling a bit mindless, or dare I say, headless, as they navigate the seasonal madness.

Yes, Halloween is in the rearview mirror now, but the frightful season isn’t over. Thanksgiving and Christmas loom like two large bookends in a chaotic, head-spinning season of sales cycles that leave retailers reeling. And if you’re in the cannabis industry, this frenetic pace is multiplied as the industry itself undergoes another, arguably scarier change: consolidation. A few big players are gobbling up smaller brands like it’s an all-you-can-eat buffet. And, spoiler alert, if you’re a small business, this process can feel a lot like getting eaten alive.

The Loopy Nature of Holiday Sales in Cannabis

The calendar flips, and so do retailers—Halloween discounts yesterday, Thanksgiving vape deals next, Christmas “holiday bundles” that feel like a Frankenstein’s monster of stock-clearing items. It’s like 420, the only holiday that really feels authentic in the cannabis world, multiplied by four and wrapped in way too much tinsel.

Each holiday promises big numbers, foot traffic, and brand engagement, but ask any cannabis business operator, and they’ll tell you: holiday sales aren’t delivering the rewards they used to. Sure, there are spikes in transactions, but margins are slim, and product bundling strategies often leave customers walking away with items they didn’t necessarily want. Financially, for many cannabis businesses, it’s a whole lot of hustle with very little net gain.

In fact, the best way to keep a cannabis retail operation afloat during the holiday rush might be to simply float down the middle—don’t go overboard on deep discounts, but don’t ignore the season entirely, either. Strike a balance. But that might not be enough when the real goblin in the room is the ominous shadow of market consolidation.

Consolidation: The Industry’s Not-So-Friendly Ghost

Let’s address the elephant in the dispensary: consolidation. Even mentioning it almost makes me want to barf. Yet here it is, creeping into the cannabis space faster than a wave of pumpkin spice lattes in October.

In the early days of cannabis, we were riding high on the thrill of a budding industry, one that was full of potential for small players, boutique brands, and passionate startups. But as the cannabis industry matures, there’s less room for the little guy. Big companies—think corporate investors, larger retail chains, and multi-state operators (MSOs)—are buying up smaller brands and merging with competitors to streamline and scale operations. Sure, that might sound like growth, but it can also feel a little like selling your soul.

This wave of consolidation brings the efficiency and financial backing needed to grow the industry, but it also risks flattening the diversity of cannabis experiences available to consumers. Instead of quirky local dispensaries with unique vibes and specialty strains, you might end up with a more standardized selection and fewer options that represent the culture’s grassroots heart. It’s the age-old tale of David and Goliath, only this time Goliath has corporate shareholders and a massive advertising budget.

Is It a Gold Rush or a Dotcom Bubble?

Cannabis has been touted as the “green gold rush,” and with projections for billion-dollar cannabis markets in multiple states, it’s easy to see why people are so hyped. But those inside the industry know that this “gold rush” feeling is laced with uncertainty. As Tony Lange reports, 11 states are projected to be billion-dollar cannabis markets in 2024, highlighting immense potential for growth in certain areas. But these successes come alongside significant challenges, from federal legal ambiguity to the vast differences in state regulations that create a checkerboard of cannabis law across the nation.

Unlike traditional industries, the cannabis market exists in a weird legal limbo—one foot in and one foot out of legitimacy, depending on which state you’re standing in. The federal government, meanwhile, seems happy to sit back and let states navigate the complexities without offering any clear guidance or a unified vision. That leaves cannabis businesses, especially smaller ones, at the mercy of not only larger players but also the tangled web of state-by-state laws that impact everything from taxes to marketing to the very products that can be sold.

If you want to read a great article breaking down a lot of data check out: https://www.cannabisbusinesstimes.com/us-states/arizona/news/15686436/11-states-projected-to-be-billiondollar-cannabis-markets-in-2024

Holidays: The Sweet and Sour Season for Cannabis

Now, back to the “joys” of the holiday season in cannabis. Like clockwork, sales shift from one theme to another, each holiday bringing a new twist on the same old routine. Halloween brings candy deals, Thanksgiving is all about the discreet high you need to get through family gatherings, and Christmas brings product bundles that are as mixed-up as a bag of Halloween trick-or-treat spoils. And then there’s New Year’s, where fire-sale blowouts attempt to clear the shelves of unsold inventory before the year closes.

The problem with holiday sales in cannabis isn’t just the lack of financial reward; it’s that they often feed into a cycle of overhyped consumerism that doesn’t match the values of many in the cannabis community. Cannabis culture, at its best, is grounded in connection, relaxation, and a mindful appreciation for life’s moments—quite a contrast to the frenzied consumerism of holiday shopping.

Why Playing It Cool Might Be the Best Strategy

So, how can cannabis businesses make it through the holiday season without getting swept up in the chaos? For many, the answer lies in moderation. Instead of chasing the holiday highs with deep discounts and complex bundles, consider staying steady with solid promotions that attract loyal customers without eroding margins. Focus on experiences over transactions, and connect with your customer base in meaningful ways. After all, if the holiday season is anything, it’s a time when people crave authenticity—and that’s something no big-box chain can buy.

The industry is changing fast, and the days of “mom-and-pop” cannabis businesses may be waning as consolidation tightens its grip. But as consumers, we have a role to play, too. By supporting the brands that resonate with us, whether they’re big or small, we help shape the future of the industry. Will we choose to feed the corporate machine, or will we keep some of the industry’s grassroots charm alive? That’s a question worth pondering as we make our way through the holiday haze.

Looking Ahead: The Next Chapter for Cannabis

There’s a lot more to say about consolidation, holiday sales, and the state of the cannabis industry. In fact, this is just the tip of the iceberg. So for those who are interested in diving deeper, stay tuned. This industry is still writing its story, and who knows? Maybe next year will bring new opportunities and fresh ways to thrive, even in the face of change.

For now, if you’re in the business, buckle up for the holiday rollercoaster. And if you’re a consumer, consider how each purchase shapes the future of cannabis culture.

Wishing you luck,
Steven Luthy