2025 was the first year for the cannabis industry in which sales were down. In 2024, they were $32 billion, and 2025 it landed at $29.94 billion. What’s the deal?
MJBizDaily looked into the matter and has decided this has less to do with a decreasing demand, and more to do with price compression, which basically means lower prices for product.
For instance, in Michigan, sales numbers were down 5.3%. However, unit volume only went down to 2.1%. Still a decrease, but it shows lower prices at work.
MJBizDaily is throwing some of the blame at regulators, who they say are handing out too many licenses and oversaturating the market. With the demand too spread out, businesses have no choice but to attract customers with lower prices.
Their solution is to cap licenses and tie them to population, per-capita spending, and even more granular factors.
This certainly feels like an accurate assessment, but there’s also no doubt that businesses are still recovering from an astronomical rise during covid, and the correction is painful. While new markets like New Jersey are still in their honeymoon phase, much more mature markets like California will likely never see the sales of 2020-2022 ever again. It was an anomaly that gave lots of people false hope for the future.
With these markets stabilizing and less states legalizing in the future, the numbers will most likely continue to decrease. But at the end of all of this, we can expect to find a semi-controlled environment.
Read the original story at MJBizDaily.
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Originally published on Weed Deep Dive.
