What the marijuana industry has in common with Harley-Davidson

(This is a contributed guest column.To be considered as an MJBizDaily guest columnist, please submit your request here.) Magnus Thorsson (Courtesy photo)Harley-Davidson’s struggles in the past decade offer a cautionary tale for the marijuana industry.

From 2014 to 2023, Harley-Davidson’s sales plummeted by 37%, driven by limited options appealing to new entrants and evolving market demands.Efforts to attract new riders, such as women, stumbled because of heavy, costly bikes ill-suited to their needs.

Similarly, the state-regulated marijuana market is contending with slowing sales growth, intense competition and shrinking margins.A key challenge is the lack of new consumer entrants, even as cultivation efficiencies have ramped up.

ADVERTISEMENT This mismatch has resulted in a surplus of inventory, driving down prices and intensifying market pressures.Since the legalization of the first adult-use marijuana markets in Colorado and Washington state in 2012, the industry has experienced remarkable growth in public acceptance and number of consumers.

However, the initial rapid expansion is now decelerating in many markets, and new recreational and medical users are trickling in at a slower pace.This trend persists despite growing evidence of the plant’s relative advantages over alcohol and prescription medications.

For sustainable growth, the cannabis industry must pivot from an over-reliance on THC potency as a selling point and invest in robust consumer-choice infrastructure.What is consumer-choice infrastructure? In the cannabis industry, consumer choice infrastructure encompasses the systems, products and services that empower consumers to make informed and personalized decisions.

It includes offering a diverse range of product types – flower, edibles, tinctures and topicals – supported by clear labeling with detailed information such as cannabinoid content and terpene profiles.It also involves...