Why Florida’s Medical Marijuana Companies Are Advocating for Recreational Use

Florida’s Medical Marijuana Market Faces Growth Slump –
Is Recreational Pot the Answer?

Summary

• Florida’s cannabis market is at a turning point as voters consider the approval of Amendment 3, which would legalize recreational marijuana use.
• This is crucial for the state’s cannabis industry, which is currently experiencing stagnation.

As November approaches, Florida stands at a crossroads that could reshape its cannabis market. Medical marijuana dispensaries are hoping that voters will approve Amendment 3, which would legalize recreational marijuana use. This move is seen as critical for the future growth of the state’s cannabis industry, which is currently experiencing stagnation.

Data shows that the flow of new medical marijuana patients in Florida is slowing down, posing challenges for the largest marijuana companies in the state. Experts highlight that the success of these businesses could hinge on the approval of the proposed amendment.

Amendment 3: A Game Changer

Amendment 3 would allow Floridians aged 21 and older to purchase and possess up to 3 ounces of marijuana. To pass, it requires the support of at least 60% of voters. The largest contributor to this campaign has been Trulieve, a cannabis giant, which has donated nearly $50 million of the $55 million raised by the amendment’s sponsor.

Currently, cannabis companies in Florida can only sell to the nearly 900,000 residents who have a medical marijuana card. Legalizing recreational use would open up these businesses to sell to any adult, drastically expanding their customer base.

Economic Implications

The economic impact of this change could be monumental. In an April filing to the U.S. Securities and Exchange Commission, Trulieve CEO Kim Rivers noted that recreational marijuana could make Florida, with its tens of millions of annual tourists, the “largest legal cannabis market in the world.”

Rivers also emphasized that the push for recreational marijuana is driven by more than just financial incentives. “Our support for adult use in Florida is driven by our conviction that no one should be in jail for small quantities of cannabis for personal consumption, and adults should have the option to buy and consume legal, tested products,” she said.

Industry Comparisons and Potential Growth

Looking at other states, the data is promising. In Missouri, marijuana sales more than doubled in the quarter following the launch of recreational use last year, according to market research firm BDSA. Other states have experienced similar results.

In Florida, however, the pool of registered medical marijuana patients has grown by less than 14,000 people in 2024, significantly lower than the growth rate seen in the same period the previous year. Sales peaked at $660 million last spring, but the industry has since recorded two consecutive quarters of declining revenues.

If Amendment 3 is approved, the influx of new customers would likely benefit a handful of large companies due to Florida’s unique market structure. State law mandates that businesses selling marijuana must also grow, process, and cultivate it, requiring significant investment in operations to meet these standards.

Market Dynamics and Legal Challenges

Recreational marijuana would follow the same licensing structure as medical marijuana unless lawmakers decide to change the rules. So far, Republican leaders have shown little interest in reforming the market.

The stringent requirements mean that only the industry’s titans have thrived. Four companies—Trulieve, Müv, Ayr Cannabis Dispensary, and Curaleaf—account for more than half of the state’s 633 dispensaries. All four businesses or their parent companies have donated to the campaign supporting recreational use.

Florida Attorney General Ashley Moody’s office has challenged the proposed amendment, arguing that it would entrench a monopolistic hold on the marijuana market to the detriment of Floridians.

Divergent Views on Market Potential

Despite these challenges, some industry leaders argue that the medical marijuana market still holds growth potential. Darren Weiss, president of Verano, which operates Müv dispensaries, believes that innovative products and expanding retail footprints will sustain growth. “The medical program as constructed today may be reaching its upper limits but that does not mean the demand is being met,” Weiss said.

Nearly 1 in 25 Floridians are registered as medical marijuana patients, the third-highest rate in the U.S., according to BDSA. However, Weiss pointed out that some potential patients are deterred by the mandatory annual $75 license fee and doctor’s visit. He emphasized that Verano supports the expansion of cannabis availability to make it accessible to all who wish to use it medicinally.

Conclusion

The passage of Amendment 3 could significantly reshape Florida’s cannabis market, offering economic benefits and aligning with social justice considerations. As the vote approaches, it remains to be seen whether Floridians will embrace this transformative change.

For Florida residents, cannabis industry professionals, and legalization advocates, the outcome of this vote could mark a pivotal moment in the state’s approach to cannabis. As we look ahead, the potential for financial growth, tourism impact, and expanded access to cannabis products underscores the importance of this decision.