Many of the top cannabis industry insiders acknowledge continued difficulties in the industry today, but their outlook at the Benzinga Cannabis conference, held in Chicago this week, was far more optimistic than last year.

Several themes kept recurring in various panels and hallway conversations, including:

• Ongoing lack of capital
• Optimism for legislative changes
• The conflict between intoxicating hemp and regulated cannabis
• Hemp beverages

Lack of capital

The persistent lack of capital seemed particularly frustrating to many business people who felt that there were many opportunities in the market.

“If only we had the money to capitalize on [fill in the blank]” was a common refrain. Sure, there are numerous debt companies willing to lend, but the appetite for debt seems to be waning as many expressed that debt levels felt oppressive.

Beau Whitney of Whitney Economics stated in his presentation that the investment forecast potential for the U.S. cannabis industry in 2025 was $16.8 billion (in the mid-point estimate). He believed this number could grow to $48 billion in 2030 and $78 billion in 2035. He also noted that these investment opportunities could shift over time.

While California topped the list for investment potential in 2025 and 2030, that surprisingly shifted to Texas for 2035. Despite Whitney’s optimism on California, many attendees indicated they had pretty much given up on that state and its problems to focus on other markets instead.

Rosy shades of hope

Even as the market realities remain challenging, there was a noticeable whiff of hope in the air, mostly centered around legislative efforts taking place. Between SAFER Banking, the commerce clause lawsuit or rescheduling to Schedule III, attendees felt that if any one of these items would be positive for the industry.

Each of these efforts also feels closer rather than further away from happening.

Emily Paxhia, managing director of Poseidon Investment Management, said she was focused on the Supreme Court case regarding the commerce clause. Paxhia gave a master class to a filled room explaining the difference between interstate and intrastate commerce.

“I’m excited that people had not really understood the case, but now they’re starting to understand about the case. I think that is invigorating in the sense that everybody’s like, okay, now we have everything covered,” she said. “The executive branch is talking about it, the legislative branch is talking about it, and then we’ve got the rescheduling piece, which is kind of the executive agency thing. Then you’ve got this case, so we’ve got the judicial covered now.”

The hemp situation

The conflict between intoxicating hemp and regulated cannabis also reared its head during several panels. One panel on the issue was packed to the brim, and passions for both sides were on display. You could feel the angst over the situation as many participants seem to respect and acknowledge the differing opinions, yet a conclusion that reaches maximum agreement is elusive for now.

Florida’s state amendment battle over legalizing adult-use cannabis versus allowing unregulated hemp products was front and center. One panel noted that $100 million had already been spent on the effort. That eye-popping number had some grumbling about whether some of that money could have been spent on advocacy programs or in other ways to support the industry.

Hemp drinks

Even as the hemp situation got lots of commentary, hemp beverage makers shrugged it off as they handed out chilled cans of THC-laden beverages. Several hemp beverage companies set up in the exhibit hall, handing out wares that had intoxicating hemp.

The hemp brands found a lot of takers for their products, even as regulated cannabis companies were unable to give out samples at the conference. It might have been curiosity, but the beverage booths were happy to educate the audience on their products.