A New Hampshire Senate panel has advanced a House-passed bill to decriminalize the use and possession of psilocybin by adults.

The measure, sponsored by Rep. Kevin Verville (R), cleared the Senate Judiciary Committee on a 3-2 vote on Tuesday. It previously passed the full House of Representatives in March.

Before approving the legislation, members of the Senate panel attached an amendment that would enact mandatory minimum sentences for certain fentanyl-related offenses and for distribution of drugs that result in a user’s death.

Sen. Tara Reardon (D) asked colleagues if the idea is that “we’re trading” the House-favored move to reduce psilocybin penalties in exchange “for enhanced penalties” on fentanyl that were contained in a separate bill that passed the Senate in January and has since remained pending before the House Judiciary Committee for months.

“One might say that, yes,” replied Chairman Bill Gannon (R).

Under the psychedelic-focused provisions of HB 528, a first psilocybin offense would be a violation, subject to a fine of $100 or less.

Second and third psilocybin offenses, meanwhile, would be class B misdemeanors, carrying fines of up to $500 and $1,000, respectively, but with no risk of jail time. Fourth and subsequent offenses would remain classified as felonies.

Sales and distribution of the substance would still be illegal, as the reform would apply only to “a person 18 years of age or older who obtains, purchases, transports, possesses, or uses psilocybin.”

As originally introduced, the legislation would have completely removed penalties around obtaining, purchasing, transporting, possessing or using psilocybin, effectively legalizing it on a noncommercial basis. However a House committee amended the bill before unanimously advancing it in March.

Verville previously told Marijuana Moment that the House’s passage of his psilocybin bill was “an historic, albeit small first step on our journey to correct 60 years of demonstrably failed policy on psychedelics.”

“This bipartisan, common sense legislation will end the decades long terror of becoming a felon for possession of mushrooms that grow naturally in New Hampshire, North America, and across the globe,” he said. “Our fight is far from over. Our attention will now turn to the NH Senate, in hopes of having them concur with the position of the House, and then beseech our governor to allow the bill to pass into law.”

The measure now proceeds to the floor of the Senate, which has historically resisted House-passed drug policy reform measures, including those to legalize marijuana, where its fate is uncertain. If approved there, it would return to the House in its amended form, where representatives would need to decide whether to accept the newly added fentanyl penalties.

Meanwhile, recent state polling suggests New Hampshire residents strongly legalizing marijuana. Late last month, a Granite State Poll, from the University of New Hampshire’s States of Opinion Project, found 70 percent support for the reform, including majorities of Democrats, Republicans and independents.

Pennsylvania Governor Slams GOP Senators For ‘Ignoring’ Voters By Killing Marijuana Legalization Bill

“It is more and more clear that pre-rolls are shaping the future of the cannabis market on both sides of the border.”

By James Valentine, Custom Cones USA and DaySavers

Cannabis continues to be a multibillion-dollar industry in Canada and the U.S., and while both countries share the same top product categories—flower, pre-rolls and vape pens—market maturity and consumer preference vary greatly, creating two distinct markets with different product landscapes and market shares between the categories.

For a detailed understanding of the current state of these two pre-roll markets, Custom Cones USA partnered with cannabis industry analytics firm Headset to analyze retail point-of-sale data from 16 markets across both nations.

Canada’s cannabis market saw its first revenue downturn since national legalization in 2018, with sales figures falling 3.27 percent due to staggering declines in flower and edible sales totaling $128 million. Pre-rolls sales on the other hand, continued to grow.

With recreational markets opening more gradually in the states since Colorado in 2012, the U.S. market continues to set sales record year after year, and pre-rolls are the fastest growing cannabis product category over the past two years, up 12 percent in 2024.

Though overall cannabis revenues dropped in Canada last year, pre-rolls grew a modest 1.2 percent year-over-year (YoY), while flower and edibles lost 9.3 percent and 12.4 percent in total sales, respectively. While still growing, the pre-roll category is showing signs of saturation, as the previous year the category saw a 38 percent growth in revenue.

In stark contrast, U.S. pre-roll sales amassed $4.1 billion in 2024, adding 2.7 percent market share while increasing monthly sales revenue from $181 million in January 2023 to $257 million in June 2024.

But it should be noted the scale of the two markets is difficult to compare. Canada moved 68.7 million pre-roll units last year, while the American market sold a staggering 324.5 million units.

While sales numbers often reflect population sizes, the difference between pre-roll market share of the two countries jumps off the page. In Canada, that number is double (32 percent) that of the U.S. (16 percent). And for the first time in Canada’s market, pre-rolls eclipsed flower as the top-selling cannabis consumer product for a full six months. Though by year’s end, flower regained the top spot, by just a 0.25 percent market share lead over pre-rolls, or only $11.4 million more in sales.

In the states, however, the market share gap between pre-rolls and flower is vast, with flower holding a 41 percent market share compared to pre-rolls’ 14 percent. To put U.S. pre-roll growth in perspective, sales revenue has increased every year over the past five years, up to $3.1 billion in 2024 compared to $469 million in 2019.

Pre-roll sales are expectedly far higher in the U.S. compared to our neighbors to the north, but their dominance in Canadian market share conveys the real story: Canadians prefer pre-rolls 2-to-1 over Americans.

Consumer pre-roll preference

Despite the wide discrepancy between American and Canadian pre-roll market share, segment preference within the category is very similar between the two nations, with hybrid, single-strain pre-rolls inching out infused pre-rolls in Canada while infused pre-rolls edged out hybrids in the states.

Canadian hybrid, single-strain pre-rolls brought in $483 million, up 8.3 percent YoY and $37 million in total sales. In the U.S., hybrid sales were up 35 percent between the start of 2023 and the first half of 2024, bringing in $1.64 billion over that time.

American infused pre-rolls pulled in a massive $1.75 billion in sales over that time, controlling 44 percent of pre-roll market share while Canadian infused pre-rolls saw a 6.5 percent increase from 2023 to 2024 with sales totaling $457 million.

Indica and sativa single-strain pre-rolls sit at No. 3 and No. 4 in both markets, with indica inching out sativa in both markets by about 10 percent. In Canada, hybrid and infused pre-rolls outsell these segments by around 300 percent, while that number in the states is around 500 percent.

In both markets, the remaining pre-roll segments—mixed Strain, CBD, single strain and blunts—make up just 5.5 percent of pre-roll sales in Canada and 7 percent in the states.

But in both countries, no matter the strain nor segment, potency tops the list as the most important factor consumers consider when choosing pre-rolls, followed closely by price, strain and brand loyalty.

An interesting fact about both American and Canadian pre-roll markets is that consumer preference for consumption-ready products peaks in the warmer months, with pre-rolls seeing their highest yearly market share in late spring, summer and early fall. In Canada, this trend led to pre-rolls becoming the highest-selling cannabis product during those months, peaking in July with a 3 percent lead over flower.

While flower remained the top-selling Canadian cannabis product in 2024, that lead has shrunk from 4 percent in 2023 to 0.25 percent in 2024, leading us to predict that pre-rolls will be the number one sales category in the Canadian market in 2025.

Package size preferred by consumers

Multi-packs reign supreme in Canada, accounting for 85 percent of pre-roll market share while the classic 1-gram single pre-roll accounts for just 11 percent of sales. In the U.S., multi-packs account for nearly 50 percent of the pre-roll market, with sales increasing 43 percent in 18 months between the beginning of 2023 and the middle of 2024.

The single 1-gram pre-roll is the top American preference for pre-roll package size, accounting for 42.3 percent of sales, nearly four times that of Canadians.

Over 15,000 new pre-roll products entered the U.S. market in 2024, with nearly 8,900 of those being the dominant single, 1-gram pre-roll. Approximately 5,000 new multi-pack products were released over the same time period.

The most popular multi-pack size in the states is the 2.5-gram 5-pack, representing 16 percent of total pre-roll sales YoY. In Canada, the 1.5-gram 3-pack is the most popular, accounting for 27 percent of sales. But Canadian multi-pack preference is beginning to look more like the American preference, with 1.5-gram packs losing 7.1 percent market share while 2- and 2.5-gram multipacks both gained 3.3 percent market share YoY.

Producers are adapting to this change in multi-pack preference. In 2024, Canadian producers increased their 2-gram and 2.5-gram pre-roll offerings by 85 percent, releasing 282 additional products in 2024. In the states, 32 percent of new products were multi-packs compared to 68 percent of single pre-roll products, with nearly 87 percent of those being the popular 1-gram single-pack.

Pre-roll price comparison

The average pre-roll product in Canada ($18.43 CAD) sells for well over twice the price of an American pre-roll ($6.50 USD), due to the overwhelming preference of multi-packs from consumers, with infused multi-packs driving that average higher with the addition for cannabis concentrates in pre-rolls.

For context, the average Canadian infused pre-roll item price is over $7 more than the highest-selling hybrid, single-strain segment. In fact, the average pre-roll price in Canada rose $0.41 YoY, implying an increase in infused products on the market.

In the U.S., despite the surge in ultra-premium, high potency Infused products that command luxury prices, the average pre-roll price dropped $0.70 in 2024, a 16.7 percent decline. The infused segment also saw a 23 percent price decrease YoY, falling from $11.50 to $8.80, a substantial drop.

But while the average item price for pre-rolls in the States is declining, the number of pre-rolls sold has skyrocketed, with an additional 10 million units sold per month from early 2023 to mid-2024, reaching 26 million units sold in June 2024 compared to 16 million at the start of 2023.

Despite changes in the landscape, pre-rolls continue to be a top selling category in both countries in both unit sold and total sales revenue.

2025 pre-roll outlook

Following years of consistent growth, pre-rolls are poised to continue their growth in revenue and unit sales in 2025 in both Canadian and American markets.

With modest growth in Canada in 2024 (1.2 percent), it may seem like growth may be reaching saturation. But with flower losing over 9 percent of market share in 2024, equating to over $145 million, we’re confident that pre-rolls will not only grow in 2025, but also flip flower as the top cannabis product category in Canada.

In the U.S., if the pre-roll market continues to increase at its current pace, we estimate that pre-rolls will add an additional 2 percent to 3 percent market share through 2025, equating to well over $4 billion in yearly total pre-roll sales, particularly in maturing markets. Infused pre-rolls have added 10 percent market share within the segment since 2019, and we expect that growth to continue, with current infused market share sitting at around 44.5 percent.

Consumers in Canada tend toward pre-rolls at a rate of 2 to 1 compared to the U.S. despite the premium price point for multi-packs, while relative sales growth in the U.S pre-roll market (11.9 percent) was about ten times that of their neighbors to the North (1.25 percent). But no matter the market, pre-rolls are a top category for consumers and producers alike.

Approximately 300 U.S. pre-roll brands were surveyed in our 2024 U.S. report about how they plan to expand their pre-roll brands, and keeping up with trends in consumer preference, it’s no wonder that adding infused pre-rolls and multi-packs top the list.

Whether it be the dominance of multi-packs in Canada or the explosive growth of infused pre-rolls in the United States, producers are adapting to meet ever-evolving consumer preferences.

As we move into 2025, it is more and more clear that pre-rolls are shaping the future of the cannabis market on both sides of the border.

James Valentine is the communications and content marketing manager for Custom Cones USA and Daysavers.

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Alabama Republican Gov. Kay Ivey signed legislation on May 14 that will regulate and tax certain hemp-derived THC products while banning others.  

Sponsored by Rep. Andy Whitt, R-Harvest, House Bill 445 prohibits smokable hemp products and more broadly authorizes the state’s Alcoholic Beverage Control (ABC) Board to license and oversee consumable hemp product manufacturers, wholesalers and retailers.

In addition, the new law will place a 10% excise tax on hemp product sales, impose testing and labeling requirements, prohibit sales to those under 21 years old, ban online sales and direct deliveries, and empower the ABC Board to conduct inspections and seize unlawful consumable hemp products without a warrant.

While the legislation goes into effect on July 1, 2025, the product regulations begin on Jan. 1, 2026.

“Today marks real progress for Alabama and the safety of our children,” Whitt wrote on X following Ivey’s signing. “By putting guardrails on these unregulated and untested products, we’ve taken meaningful steps to bring oversight and responsibility to an industry that’s operated without either for too long.”

Whitt also told the Alabama Daily News that the state’s hemp industry has been the “wild west” since the 2018 Farm Bill, which federally legalized hemp, defining it as a cannabis plant that tests at 0.3% delta-9 THC or less on a dry-weight basis in the field. The federal legislation does not regulate finished goods, allowing manufacturers to create intoxicating products from the plant’s derivatives absent of state interventions.

Under H.B. 445, edible hemp products cannot exceed 10 milligrams of total THC per serving or 40 milligrams per container, while beverages are limited to 10 milligrams of THC per serving and no more than four 12-fluid-ounce servings per container. Topicals, sublinguals and other product categories are limited to 40 milligrams of total THC per container.

In addition to banning smokable products, the legislation also prohibits any product that contains “psychoactive cannabinoids” that are created by a chemical synthesis, modification or chemical conversion from another cannabinoid, which is often the case for delta-8 THC, which is commonly converted in a laboratory from CBD.

Alabama Cannabis Coalition founder and President H. Marty Schelper said in a video she posted Wednesday on social media that “erroneous” information led to the bill’s passage.

“We are extremely disappointed in our legislators. We are equally disappointed in Gov. Kay Ivey,” she said, specifically calling out Whitt and state Sen. Tim Melson, who sponsored the bill in the upper chamber. “What H.B. 445 did was you turned people that needed this hemp flower to the streets, to the black market. You’re so concerned about the safety and the [certificates of analysis] and the control and the regulation, but you’re turning people out on the street that need access to flower.”

Birmingham Mayor Randall Woodfin, a cannabis reform advocate who has pardoned thousands of Alabamians in his city for cannabis possession offenses, also opposed H.B. 445, urging Ivey to veto the bill.

“Governor Ivey made the wrong call by signing HB445,” he wrote May 14 on X. “Folks who backed this bill now own what comes next—lost jobs, shuttered businesses, and millions in lost revenue. I hope it’s challenged in court and/or fixed in the Legislature as soon as possible next session. Alabama deserves better than this.”

Behind his sponsorship, Whitt talked with local media on Wednesday about his concerns with the state’s hemp industry morphing into high-THC beverages being sold at bars and restaurants in the aftermath of the 2018 Farm Bill.  

Under H.B. 445, the ABC Board would be limited to licensing the following retailers to sell consumable hemp-derived THC products: those that have a valid retail liquor license; or that only sell consumable hemp products.

However, licensed pharmacies could sell topicals or sublinguals, while grocery stores that have at least 14,000 square feet dedicated to food item sales could sell hemp-THC beverages that are kept separate from beverages intended for children, behind glass, and demarcated by a sign indicating that the beverages contain hemp-derived compounds.

While hemp industry advocates opposed the legislation for being too strict, the reform measure also took hits from prohibitionists who said it did not go far enough.

Stephanie Holden Smith, president and CEO of the Alabama Policy Institute (API), suggested that Alabama’s elected officials are “condoning the recreational use of dangerous products” through the passage of H.B. 445.

“The amended bill also allows drinkable THC in grocery stores across the state, locations frequented by Alabama’s youngest citizens,” she said in a public statement. “API stands by our assertion that hemp-derived psychoactive THC products should be banned entirely. We believe that the legislative aim to limit access to psychoactive THC has unfortunately fallen short.”

Under H.B. 445, those who sell or provide consumable hemp products to those under 21 years of age will face license suspension or revocation and fines ranging from $5,000 to $20,000. In addition to civil penalties, multiple-time offenders could face felony charges.