M&A Frenzy And Deflation Post-Election: Which Companies Are Ready To Win Big In Florida’s Cannabis Market
With Florida’s recreational cannabis vote looming, Pablo Zuanic of Zuanic & Associates anticipates a high-stakes shakeup in the state’s cannabis market. His latest analysis reveals a volatile mix of market deflation, rapid retail expansion and an active M&A landscape as key companies position themselves to capitalize on post-election shifts.
For operators ready to seize these dynamics, the coming months following the on November 5 elections could bring significant growth opportunities…or intensified competition.
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Market Deflation As Sales Drop Despite Volume Growth
According to Zuanic, Florida’s medical marijuana (MMJ) market is experiencing a deflationary trend. Q3 2024 sales were reported at $418 million—a 13% year-over-year drop, despite a 13% growth in flower volume and 6% in non-flower products reported by the Office of Medical Marijuana Use (OMMU).
This volume-sales disconnect points to a 23% year-over-year price decline, reflecting a more competitive landscape. “Price declines show that Florida’s cannabis market faces intense pressures,” Zuanic noted.