What's New in Cannabis Marketing for 2026

Two massive regulatory shifts are colliding in 2026, and they're about to test every cannabis and hemp brand in ways we haven't seen before.

The federal government is shutting down the intoxicating hemp market—wiping out an estimated $28 billion industry almost overnight. At the same time, cannabis is moving toward Schedule III rescheduling, opening doors that have been locked for decades.

Here at The Hood Collective, we know what this really means: branding has never mattered more.

When regulations flip your business model upside down, your brand is what survives. When new opportunities emerge, strong brands capture them first. Whether you're pivoting away from Delta-8 or preparing for post-280E marketing budgets, how you position your brand in 2026 will determine whether you thrive or disappear.

Here's what's changing and why your brand strategy needs to evolve now.

Hemp Bill Changes in 2026: What the "Loophole" Closing Means for Your Brand

In November 2025, President Trump signed legislation that fundamentally rewrites the rules for hemp. The change seems technical, but it's catastrophic for most of the industry: the federal definition of hemp now includes a 0.3% limit on total THC, not just Delta-9 THC. That means THCA—the cannabinoid that's been the backbone of the "legal weed" market—now counts against that threshold.

The kicker? This goes into effect November 12, 2026. The industry has exactly one year.

For anyone who's built a business on Delta-8 products, THCA flower, or hemp-derived beverages and edibles, this is an extinction-level event. We're talking about an estimated 95% of the current $28.4 billion hemp market potentially disappearing. Over 300,000 jobs are on the line, and states stand to lose around $1.5 billion in tax revenue.

The Scramble Is Already Starting

Here's what's happening right now: hemp brands are in full panic mode, trying to move inventory before November hits. Warehouses are full of products that will be worthless in twelve months, and the temptation is to throw money at marketing to clear it out fast.

But here's the truth—massive marketing investments won't save you if you're selling products with an expiration date. Marketing takes time to build momentum. Brand awareness doesn't happen overnight. Performance campaigns need optimization cycles. If you're dumping budget into promoting Delta-8 or THCA products right now, you're essentially lighting money on fire to maybe move a few extra units before the deadline.

And if agencies or consultants are promising you a "big splash" that'll solve your inventory problem quickly? Run. That's not how marketing works, and it's definitely not how branding works.

This Isn't the Time to Invest in Dying Products—It's Time to Build What Comes Next

The real opportunity isn't in scrambling to sell what's going away. It's in branding around what remains legal after the grace period ends.

While your competitors are panicking and pushing discounts on doomed products, you should be repositioning your brand for the compliant future. That might mean pivoting to non-intoxicating CBD wellness products. It might mean building a lifestyle brand that can transition into state-legal cannabis markets. It might mean focusing on industrial hemp applications or other cannabinoid innovations that fit within the new regulations.

Whatever the strategy, the time to build that brand equity is now—not in November 2026 when everyone realizes their old playbook is dead.

Your customers are going to remember which brands communicated honestly about the transition, which ones had a clear vision for the future, and which ones just tried to dump inventory with desperate fire sales. Brand loyalty doesn't come from discounts on products that are about to be illegal. It comes from trust, transparency, and showing your audience that you're built to last beyond a regulatory deadline.

So resist the scramble. Don't fall for promises of quick fixes. Instead, invest in building the brand that survives past November 2026.

Cannabis Rescheduling in 2026: Schedule III Status and the Brand Divide

While the hemp industry faces an existential crisis, cannabis is heading in the opposite direction. In December 2025, President Trump signed an executive order directing the Attorney General to expedite moving marijuana from Schedule I to Schedule III under the Controlled Substances Act. The DEA proposed this change back in May 2024, and while the process remains pending with no finalized timeline, the momentum is undeniable.

For state-legal cannabis operators, this is the legitimacy moment they've been waiting for decades to see.

Here's what matters most for marketers: Section 280E tax restrictions are going away. For those unfamiliar, 280E has been the silent killer of cannabis businesses since legalization began. It prohibits companies selling Schedule I or II substances from deducting ordinary business expenses on federal tax returns. That means no deductions for rent, salaries, marketing, or anything except cost of goods sold. Cannabis companies have been operating with effective tax rates of 70% or higher, strangling their ability to invest in growth.

Schedule III classification changes everything. Suddenly, cannabis businesses can deduct normal operating expenses like any other company. That means real marketing budgets for the first time ever.

Let's be clear about what this isn't: rescheduling doesn't legalize recreational marijuana federally. It doesn't override state laws. Interstate commerce remains illegal. Federal regulations around marijuana are still in effect. This is a classification change, not blanket legalization. But the tax implications alone are massive—and they're about to create a brand divide that will reshape the industry.

The multi-state operators and well-capitalized brands have been waiting for this moment. They've been sitting on expansion plans, marketing strategies, and growth initiatives that were financially impossible under 280E. The second rescheduling goes through, they're going to flood the market with capital. Expect to see established brands massively increase their marketing spend, hire top-tier agencies, launch sophisticated omnichannel campaigns, invest in brand partnerships and experiential marketing, and dominate the conversation in ways smaller operators simply can't match. They have the infrastructure, the resources, and the relationships to move fast. And they will.

This is where it gets tricky for smaller operators and newer brands. You're about to face a very different competitive landscape. The big players are going to have the budget to outspend you on every channel, the resources to hire the best talent, and the market presence to squeeze you out of consumer mindshare.

But here's the thing: budget doesn't build authentic brands. Story does.

While the big brands are preparing to dominate through sheer spending power, smaller and newer brands have something they don't—agility, authenticity, and the ability to connect with audiences on a human level. You can't buy the kind of loyalty that comes from genuine community connection, founder-led storytelling, and brands that actually represent the culture instead of commodifying it.

The opportunity for smaller brands isn't to compete dollar-for-dollar with MSOs. It's to own your niche relentlessly. Build deep relationships with your community. Create brand experiences that feel personal, not corporate. Position yourself as the antidote to Big Cannabis the same way craft beer positioned itself against macro breweries.

Rescheduling creates the conditions for consolidation, sure. But it also creates the conditions for differentiation. The brands that survive and thrive won't be the ones trying to out-spend the giants—they'll be the ones that out-connect, out-story, and out-authentic them.

The question is: are you building a brand that can do that, or are you just trying to keep up?

What Hemp and Cannabis Marketers Need to Know in 2026

If you're marketing in the cannabis or hemp space right now, you're standing at a fork in the road. The regulatory landscape is splitting the industry into two distinct paths, and the decisions you make in the next twelve months will determine whether your brand survives or gets buried.

For hemp brands built on intoxicating products, the math is brutal: pivot or perish. You have one year to reposition your entire brand before your core product line becomes illegal. That's not enough time to waste on half-measures or wishful thinking that regulations might change. The window is closing fast, and the brands that haven't started repositioning are already behind. This isn't about tweaking your messaging or running a few awareness campaigns. This is about fundamentally rethinking what your brand stands for when the products that built your business are gone. Can you transition to compliant CBD wellness products? Can you move into state-legal cannabis markets? Can you build a lifestyle brand that transcends specific product categories? Whatever the answer, you need to be executing on it now, not planning for it later.

For cannabis brands operating in legal states, this is your moment. Rescheduling to Schedule III means the end of 280E, which means real marketing budgets for the first time in your company's existence. But don't mistake tax relief for a guaranteed win. The big players are about to flood the market with capital and sophisticated campaigns. If you're a smaller brand, you can't compete on spend—you have to compete on story, authenticity, and community connection. The legitimacy that comes with Schedule III also means increased competition, higher standards, and a more crowded marketplace. Prepare for that now by doubling down on what makes your brand irreplaceable, not just viable.

And here's what applies to everyone, regardless of which side of this regulatory divide you're on: the rules are changing, and that makes staying compliant harder. What's legal today might not be legal in six months. Hemp brands selling THCA products are operating legally right now but won't be come November. Cannabis companies will need to adjust their operations and documentation when Schedule III takes effect. The FDA is expected to issue guidance on cannabinoid definitions in February 2026. The DEA's final decision on rescheduling could drop anytime. State regulations are evolving in real time.

This isn't about compliance suddenly mattering more—it's always mattered. It's about the fact that the goalposts are moving, and brands that don't keep up with the changes will find themselves on the wrong side of the law without even realizing it. Your marketing claims, product positioning, and advertising channels all need to be updated as regulations shift. This is not the time to assume what worked last year still works today.

The brands that survive this transition will be the ones treating it like the reset it is—not business as usual with a few tweaks, but a fundamental shift that requires vigilance, adaptability, and a willingness to rebuild from the ground up if necessary.

Action Steps for Cannabis and Hemp Brands in 2026

The regulatory ground is shifting under your feet, and sitting still isn't a strategy. Here's what you need to do right now to position your brand for survival and growth through these changes.

First, audit everything. And we mean everything. Go through your entire product portfolio and identify what's going to be compliant after November 2026 and what isn't. Review every piece of marketing collateral, every product claim, every piece of website copy, every social post. If you're a hemp brand relying on THCA or Delta-8 products, you need a clear-eyed assessment of how much of your business evaporates when the rules change. Don't sugarcoat it. Don't assume you'll figure it out later. Know exactly where you stand right now so you can plan accordingly.

Second, if you're a hemp brand facing the November deadline, start talking to your customers now. Don't wait until products start disappearing from shelves to explain what's happening. Transparency builds trust, and trust is what keeps customers loyal when everything else is in flux. Develop clear, honest messaging about the regulatory changes and what they mean for your product lineup. Show them where you're headed. Give them a reason to stick with you even when your offerings change. The brands that handle this transition with integrity and communication will retain their customer base. The ones that ghost their audience or scramble at the last minute will lose them.

Third, plan for the tax windfall if you're in state-legal cannabis. The end of 280E means you'll finally have real money to invest in marketing, but don't just throw it at the same tactics everyone else is using. Think strategically about where that budget creates the most value for your brand. If you're a smaller operator, resist the urge to compete directly with MSOs on paid media spend. Instead, invest in building owned channels, creating genuine community connections, and telling stories that resonate on a human level. Use the budget to amplify what already makes you different, not to copy what the big brands are doing.

Fourth, stay on top of the regulatory timeline. The FDA is expected to issue guidance on hemp cannabinoid definitions in February 2026. The DEA's final rescheduling decision could come at any time. State regulations are shifting as governments respond to federal changes. Set up alerts, follow industry news, work with legal counsel who specializes in cannabis and hemp compliance. You can't afford to miss a regulatory update that changes the rules for your business.

And finally, remember that this is a branding moment, not just a regulatory one. The brands that come out of 2026 stronger will be the ones that treated these changes as an opportunity to clarify who they are, what they stand for, and why they matter to their customers. Whether you're pivoting away from intoxicating hemp products or preparing to compete in a post-280E cannabis market, the question isn't just "what do we sell?"—it's "who are we when the rules change?"

Answer that question now, and build your strategy around it. That's how you survive 2026 and come out the other side with a brand that's stronger, not just still standing.

Cannabis Marketing in 2026: Your Next Steps

2026 isn't just another year in cannabis and hemp—it's a line in the sand. On one side, you have brands that saw these regulatory shifts coming and used them to clarify their identity, strengthen their positioning, and build deeper connections with their audiences. On the other side, you have brands that reacted too late, chased short-term fixes, or assumed they could ride out the changes without adapting.

The difference between those two outcomes isn't luck. It's strategy. It's branding.

Whether you're a hemp company facing an existential product pivot or a cannabis operator preparing for post-280E competition, the brands that win in 2026 will be the ones that treated this moment as an opportunity to define who they are—not just what they sell.

At The Hood Collective, we help cannabis and hemp brands navigate exactly these kinds of inflection points. If you're not sure how to position your brand through these regulatory changes, if you need a strategy that goes beyond just moving product, or if you want to build a brand that survives no matter what the regulations throw at you—let's talk.

The rules are changing. Your brand doesn't have to disappear with them.

Ready to future-proof your cannabis brand? Contact The Hood Collective today.