Eleven US states surpassed $1 billion in legal cannabis sales in 2024, demonstrating the industry’s continued growth and strength. This milestone reflects the increasing normalization and acceptance of cannabis across the country, even in states without full adult-use legalization. While some established markets saw slight dips or plateaus, others experienced significant growth, highlighting diverse market trends.
Here’s a breakdown of the states that achieved this impressive feat:
- Arizona: While falling short of its 2023 record, Arizona maintained its place in the “Billion Dollar Club,” with sales exceeding $1 billion. A notable trend in Arizona is the shrinking proportion of medical marijuana sales, now representing only 17% of total revenue.
- California: Despite a thriving illicit market, California remains the dominant force in legal cannabis, with estimated sales of $4.27 billion. Flower continues to be the top-selling product, followed by vapes and edibles. Interestingly, medical marijuana sales account for only 8% of the state’s total cannabis market.
- Colorado: Colorado’s cannabis industry faced challenges in 2024, reporting its lowest sales figures since 2015 at $1.28 billion. Falling wholesale prices contributed to this decline, a trend that has raised concerns in other states.
- Florida: Despite the failure of adult-use legalization initiatives, Florida’s medical marijuana program continues to flourish, generating $2.1 billion in sales. This demonstrates the robust demand for cannabis even within a medical framework.
- Illinois: Illinois experienced continued market growth, reaching a record high of nearly $1.8 billion in sales. The state has also made significant strides in expunging cannabis-related convictions, with over 20,000 expungements since 2020.
- Maryland: Launching its adult-use program in July 2023, Maryland’s cannabis market quickly blossomed, generating $1.14 billion in combined medical and adult-use sales.
- Massachusetts: Massachusetts also enjoyed a record-breaking year, with total cannabis sales reaching $1.64 billion. Worcester County has been identified as the state’s “cannabis capital,” accounting for a significant portion of sales.
- Michigan: Despite competition from neighboring states, Michigan achieved a record $3.29 billion in sales, a 7% increase from 2023. Its impressive sales figures, relative to its population size, indicate a strong consumer base.
- Missouri: Missouri’s adult-use program, launched just two years ago, is thriving, generating $1.4 billion in sales. Data suggests that men account for the majority of purchases, with millennials representing a large segment of consumers.
- Pennsylvania: While adult-use legalization remains pending, Pennsylvania’s medical marijuana market continues to perform strongly, with over $1.6 billion in sales. Unlike Colorado, declining wholesale prices in Pennsylvania have spurred increased purchases.
- Washington: Despite a slight decline in recent years, Washington’s cannabis market is projected to generate $1.2 billion in 2024.
These figures underscore the substantial economic impact of the cannabis industry. When factoring in the illicit market, the total revenue is likely much higher. With increasing public support for cannabis legalization, states face the choice of regulating and taxing the industry or ceding control and revenue to the black market or neighboring states.