As The Conversation Around The Decriminalization Of Psilocybin Increases, What Can We Learn From The Cannabis Industry?

By Cory Waggoner, Founder and CEO, Higher Yields Consulting

In May 2019, Denver became the first city to decriminalize psilocybin mushrooms. Following this decision, cities across the nation received calls for decriminalization as people spoke of the vast therapeutic benefits they received from ingesting psilocybin. In 2020, Oregon became the first state to decriminalize and legalize psilocybin for therapeutic use. 

This narrative doesn’t stray far from the journey that cannabis took into becoming a booming industry. Some aspects both cannabis and psilocybin have in common include a black market start, a history of unfounded stigma, a push for decriminalization followed by legalization for medical use, and an ever-growing need for evidence-based education. 

Despite their similarities, it is important to note that there are also major differences. Mainly, these plants have vastly different physiological responses and meet different consumer needs. Cannabis got its boom from the opioid crisis, and now psilocybin is hitting the stage as conversations around mental health become more prevalent. 

More and more consumers have shared testimonies on how psilocybin and other psychoactive drugs have positively benefited their mental health. In some cases, their uses have provided an alternative to traditional pharmaceutical medications. With this, a multitude of questions has arisen alongside it, including:

• What would it mean for big pharma if psilocybin takes on a more active role in therapeutic settings? Will big pharma jump in and profit or fight with old narratives? 

• Will psilocybin be greenlighted for recreational use, or will it be squashed from the start? 

• Does the entrepreneur have a fighting chance to step into this new industry?

The cannabis industry has provided a roadmap for psilocybin, as people are apprehensive about believing everything they hear. Today, there is a greater openness toward acknowledging the benefits of use and supporting the desire for more scientific studies related to mental health and even addiction. As decriminalization continues and doors open up for medicinal use and the for-profit industry, what has cannabis taught us that we can apply here? We see this being the opportunity for psilocybin to make its greatest impact on consumers and to gain an opportunity for education as it enters into more legal and regulated markets.

Who you surround yourself with is the key ingredient to success

The ecosystem businesses create for themselves early on is crucial. Stepping into an industry with strict regulations and constant change isn’t easy. There are many mistakes to be made and many successes of which to be proud. Surround yourself with people who have experienced both to save time and money. 

Working with a professional consulting company can be pivotal to your business success. 

Knowledge of the movers and shakers in the industry is a massive benefit. Have questions about compliance? Get the answers quickly to save your business from being flagged or turned away. Need space to grow? Connect to realtors that know the ins and outs of commercial real estate for the growth of highly regulated substances. In short, get connected with those who can give you research and experience-based advice, provide backed education and connect you further within the industry. 

Be agile and adaptive if you want to survive in an ever-evolving industry 

If cannabis taught us anything, it’s not to get too comfortable and don’t become complacent. The industry is always on the move, including constant shifts in regulations and compliance updates. When faced with changing regulations, few options exist: drop out, fight, or adapt. If you’re choosing to stay in, the best bet is to adapt, adapt and adapt again. 

Pay attention to regulations as they come and mold your business model to line up with those regulations. Don't be the person beating their head against the wall; instead, be the innovative, forward thinker rolling with the punches. You’re still going to win some, and you’re still going to lose some. In cannabis, there are fights still happening all the time when it comes to THC and CBD levels — you just have to be prepared for things to shift and know, no matter how good you are, you’re still going to take some arrows.

Branding is key 

When cannabis hit the market, you saw a lot of Ziploc® bags, meaning there wasn’t a lot of brand strategy or differentiation happening among sellers. Now, branding and marketing are a part of the industry as anywhere else. You have brands recognized by their logos, packaging, and stories. 

If psilocybin hits the market similarly, carve a niche in the market for your brand. Think of your ideal end-consumer and their needs. Then, do everything you can to meet those needs — from the actual product to its packaging, logo, website, swag, and more. 

Cannabis and psilocybin — is there an opportunity for partnership?

Although we may be a part of the same club (the black market, turned decriminalization, turned legalization club), there are still enough differences between the cannabis and psilocybin industries to acknowledge there will probably be a different evolutionary journey. Specifically, from a medical perspective, cannabis and psilocybin service completely different areas so their development will also differ greatly.  

Are there folks in the cannabis industry just waiting to jump into psilocybin? Definitely. But success in one industry doesn’t guarantee success in the other, especially as we take into account varying consumer needs. Will the industries collide? Maybe. Do they align? In some ways, yes; in other ways, no. The biggest thing now is to remain curious and stay educated and up to speed on the science, political shifts, and regulations. Most importantly, stay vigilant on who is entering the industry to look out for their own pocket and who is entering with a genuine interest in using plant medicines to benefit humanity.