A Hemp Report by First Citizens Bank
First Citizens Bank, in collaboration with The Harris Poll, produced a 2025 cannabis industry report analyzing the state of the U.S. cannabis industry. The report, based on a survey of nearly 200 businesses, explores the financial health of cannabis companies, their growth opportunities, and the challenges they face in securing financing. It highlights differences between plant-touching and non-plant-touching businesses, noting the unique obstacles and advantages for each.
The cannabis industry report reveals that while most cannabis companies anticipate growth through market expansion and product diversification, they continue to struggle with banking access and securing loans. Legislative involvement and participation in trade organizations are also examined as key factors influencing the industry’s future. The report offers insights into investment strategies and the impact of external factors like material costs and AI adoption on cannabis businesses.
Key Takeaways from the Cannabis Industry Report:
• Financial Health and Growth: In 2024, a significant number of cannabis companies reported strong financial health and expected sales growth
• Growth Strategies: Cannabis companies plan to expand through new markets, product diversification, and strategic alliances. Plant-touching businesses are more likely to focus on product diversification, while non-plant-touching companies prioritize partnerships
• Financial Hurdles: Securing basic banking services and loans remains a challenge for cannabis businesses. Many resort to alternative loan options with less favorable terms
• Legislative Engagement: Cannabis businesses are actively engaging in legislative efforts at the state level to support their industry
Plant-Touching vs. Non-Plant-Touching Businesses:
The report distinguishes between plant-touching and non-plant-touching businesses
• Plant-touching businesses are licensed operators involved in selling, distributing, warehousing, or producing cannabinoid and non-cannabinoid products
Examples include:
◦ Retail dispensaries
◦ Cannabis cultivation and genetics companies
◦ Processors and manufacturers
◦ Transportation and distribution services
• Non-plant-touching businesses are consultants, service providers, suppliers, and other vendors in the cannabis industry
Examples include:
◦ Consulting and business development firms
◦ Real estate and financial service providers
◦ Equipment and supplies vendors
◦ Data management and technology services
Key Differences and Insights:
• Financial Health: Non-plant-touching companies are generally in better financial health than plant-touching companies. A higher percentage of non-plant-touching companies reported their financial health as “very strong” compared to plant-touching businesses
• Growth Strategies: Plant-touching businesses often grow through product diversification, while non-plant-touching businesses focus on strategic alliances
• Investment Priorities: Non-plant-touching companies prioritize investments in technology, infrastructure, sustainability, and corporate social responsibility (CSR). Plant-touching businesses focus more on marketing, advertising, and supply chain optimization
• Impact of External Factors: Plant-touching businesses are more concerned about the negative impact of raw material costs on their business compared to non-plant-touching firms. Non-plant-touching firms see greater potential in data management and AI platforms
• Access to Financial Services: Plant-touching businesses find it more difficult to access banking services, secure payment processors, and lease or finance equipment compared to non-plant-touching companies
• Trade Organizations: Larger companies and non-plant-touching businesses are more likely to participate in trade organizations
Redfern are Proud Clients of First Citizens Bank
After being in the hemp industry since its inception in 2016, we’ve had our share of ups and downs. We’ve had to maneuver every change in federal and state law to simply stay in business and to achieve our mission of providing the best quality hemp wellness products to our customers.
With that said, financial services – from banks to payment processors – have traditionally been a thorn in our side. Many of the large commercial banks don’t want to touch us with a ten foot pole. Even after federal re-legalization! Everything changed once we established a relationship with First Citizens Bank, the largest family-owned bank in the nation.
Not only do they share our patriotic fervor to create jobs through tenacious innovation; they, also, which is apparent through this report, sincerely care about the health of our industry. In short, First Citizens Bank truly respects the Redfern Team as intrepid American entrepreneurs. They see us as we truly are: pioneers within one of Virginia’s most important emerging industries.
If you’re in the hemp or cannabis industry we highly recommend working with them. Below is a link to learn more.