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Despite recording its 11th consecutive year of growth, the US legal cannabis industry’s expansion slowed in 2024, with revenues increasing by a modest 6% to $30.2-$30.7 billion, according to a recent report by Oregon-based Whitney Economics.
As reported by Green Market Report, while growth remains consistent, it has continued to decline since pandemic peaks.
More concerningly, the number of cannabis businesses failing is also accelerating. Nearly 1,000 fewer active business licenses were recorded by year’s end, with a staggering 72.7% of operators nationwide reporting unprofitability.
“Unless there are changes at both the federal and state levels that are more business friendly, the pace of business failures will continue to accelerate,” warned Beau Whitney, founder of Whitney Economics.
Michigan defied expectations with nearly $3.3 billion in sales, driven in part by out-of-state purchases from neighboring regions. New York also outperformed after regulatory adjustments, reaching $859 million in sales, a significant increase from $264 million in 2023.
In contrast, Florida fell short of projections due to a slowdown in new medical patient registrations, with slower growth forecasted for 2025 despite multistate operators’ expansion. Meanwhile, Arizona posted negative growth, while Colorado, Oregon, and Washington experienced flattening or declining demand as they approached market saturation.
Whitney Economics attributes the slowing growth partly to the lack of progress on federal cannabis reform, including stalled rescheduling hearings and stagnant congressional legislation on banking, tax reform, and interstate commerce.
“The level of credibility that congress has with the cannabis industry is at an all-time low,” noted Whitney. This inaction has contributed to a notable 70% rise in states with declining year-over-year retail revenue, with six mature markets collectively losing $457.9 million in revenue.
Whitney Economics 2025 retail demand forecast is set to be released in the coming weeks.
“}]] Despite recording its 11th consecutive year of growth, the US legal cannabis industry’s expansion slowed in 2024, with revenues increasing by a modest 6% to $30.2-$30.7 billion, according to a Read More
