We are now at the third installment of our 4/20 special, and so far, we've talked a lot about Europe. The elephant in the room has now gotten too big to ignore, and to be fair, it's not our intention to ignore the biggest cannabis market in the world: North America. Things have gotten quite hectic recently—as if they weren't already. Tariffs, price compression, and a still fragmented regulatory environment are some of the most pressing challenges US growers are currently facing. To dive into the nuances of the cannabis industry in the North America, Massachusetts-based Picnic, Michigan-based Calyxeum, and Canada-based supplier Premier Tech will guide us through the ups and downs of the current cannabis scene.
Premier Tech
"One of the fascinating aspects of the cannabis industry is its continuous evolution and development," says Jason Saurer, Commercial Director – Medicinal at Premier Tech. While the entire horticultural industry is a rather technologically advanced one, cannabis growers certainly stand out when it comes to the adoption of new technologies—and things are getting more advanced (and fancier) by the minute. At the same time, this aspect also makes the industry quite vulnerable to tariffs, as in a globalized world, everything is connected—and so are the things that go into your average cannabis CEA grow. "So far, the year 2025 has led to some rather unusual market scenarios due to various laws and tariffs going into effect. On top of that, among the challenges we face are market volatility and uncertainty related to overseas production. Nevertheless, at Premier Tech, we are performing well in the Medicinal market and are dedicated to supporting our clients who are facing similar challenges. Our commitment to this industry is significant; we recently introduced new Commercial products with AGTIV® REACH™ Technology in December during MJBIZ, featuring our line of PRO-MIX® loose coir with Mycorrhizae. The only loose coco in the market offered with this technology already in the bag. Our goals remain unchanged: to expand our service offerings and to move forward alongside our clients and partners."
© Premier Tech Horticulture
Sizeable roadblocks aside, the cannabis industry in North America keeps on pushing forward. "Our greatest opportunities lie in focusing on Multi-State Operators (MSOs) and Craft Growers. We aim to establish strong B2B and B2C connections, fostering lasting partnerships and trust with growers. This is all made possible by our vast network of Distribution partners throughout North America."
As in every aspect of life, communication plays an important role in advancing the industry, and Jason and Premier Tech are very much aware of that. "We aspire to be acknowledged as more than just a peat company since we have much more to provide. Our high-quality coir line is exceptional, and we aim to present our expanding services and proven solutions to the market. Our goal is to support our clients and partner with them in this industry. One of the aspects I cherish most is our approach to growers—listening to their successes, understanding their needs and challenges, and collaborating with them to foster meaningful and lasting relationships."
Calyxeum – Michigan
Michigan is certainly one of those states where the market has been the most challenging. There's a sea of growers constantly pushing to stand out among the competition—not a situation for the faint of heart. However, it seems as if the tides may be turning, with the market taking a different direction. This is what Rebecca Colett, founder of Calyxeum, says. "The Michigan market is still oversaturated and highly competitive, but we're starting to see a shift. Consumers are moving away from hype and gravitating toward brands that are consistent, transparent, and quality-driven. That plays to our strengths—premium indoor flower, intentional product drops, and a real connection to community."
© Calyxeum
It's more easily said than done, as different driving forces constantly block operators from going all out, such as banking and marketing limitations—especially if one is an independent company like Calyxeum, which can't rely on MSOs' deep pockets. "As a Black women-owned and independent brand, we continue to face challenges around access to capital, marketing censorship, and fair placement in the retail space. It's tough, but we're resilient. We're staying focused on what we can control—like continuing to educate our community, expanding our offerings, and staying true to our mission."
Being close to the community and building a brand grounded in a company's mission and values are some of the ways the competitive Michigan cannabis market can be tackled. Rebecca and Calyxeum have indeed been laser-focused on educating customers, building a relatable brand, and coming up with product offerings to attract new types of consumers. "In the next few months, I see major opportunity in consumer education and brand authenticity. At Calyxeum, we just launched a new cannabis education series across Instagram and YouTube to help demystify the plant and highlight its wellness potential. We're also gearing up for our spring product drop with strains like Blue Cookies, Purple Envy, and E85 Gas—crafted for quality and curated for impact. The brands that center people, not just profits, will be the ones that last."
Picnic – Massachusetts
From Michigan, we now go to Massachusetts—in the Pioneer Valley, more precisely—where Picnic has its own operation. The situation of the market in this state is perhaps not that different from Michigan, and the competition is not only stiff—it's brutal. "There is significant market volatility in Massachusetts at the moment with many businesses on all sides of the industry closing their doors," Picnic CEO Ezra Hagerty says. "We expect to see this trend continue throughout the course of the year." As bleak as this situation may look, there's still quite a bit of space for the market to grow, according to him. "We're still a state of 6 million people and a market of $1.65 billion in sales in 2024. While the market conditions are tough from a pricing and competition perspective, there is still opportunity for growth here. Businesses that practice strong fundamentals, manage their costs, build great culture, and price their products competitively have an opportunity to succeed."
© Picnic
In the horti sector as a whole—but especially in cannabis—labor has always been a challenge. For cannabis, you may end up with people who didn't fully grasp what working on a farm entails. Many growers have voiced their frustration over new hires lured into the industry just because they would deal with cannabis plants. However, there's much more than just plant-touching tasks to a cannabis operation—and if a grower aspires to scale up, this challenge becomes even more pressing. "We are a lean team with big ambitions, so one of our challenges is managing our labor resource allocation and making sure we're staffed properly," Ezra points out. "Picnic will be entering into the finished goods market with prerolls in May, so we've added an additional manufacturing component to our operation, which is new for us. Outside our walls, we feel the pressure of price compression, but we hedge against it by diligently managing our costs and focusing on what we control. At the end of the day, the market dictates the price, and operators must respond accordingly."
As mentioned earlier, different types of finished products may still represent good opportunities for growers, especially if the market they operate in is going through challenging times. "One area of the market that we're closely watching is the demand for shake, which has risen exponentially over the past few quarters. Alongside this, we've seen the price of distillate almost double from its low. The demand and growth of these two categories tell us two things—and maybe even more. Consumers have a preference toward purchasing value products at lower prices, and there is now a supply-side constraint in the market, which we have not seen in a long time. This is good news for cultivators who truly understand their unit economics and can compete in this side of the market. We continue to see strong demand for our core business of fresh frozen as well as dry flower and shake. There is a large opportunity to create and sell quality finished goods at competitive prices."
Stay tuned for the fourth and final part of our 4/20 special! Click here if you missed part 1, and here if you missed part 2