California Legal Cannabis Sales Fall 11% to $3.9 Billion as Black Market Keeps More Than 60%
Updated
Updated · Fox News · Jun 8
California Legal Cannabis Sales Fall 11% to $3.9 Billion as Black Market Keeps More Than 60%
1 articles · Updated · Fox News · Jun 8
Summary
$3.9 billion in California legal cannabis sales in 2025 capped a third straight annual decline, down from $4.4 billion in 2023 even as U.S. marijuana use kept rising.
More than 60% of marijuana consumed in California is still bought outside the licensed system, where illegal sellers can undercut legal shops by avoiding taxes, testing, licensing and labor costs.
More than 10,000 California cannabis licenses are now inactive or surrendered, outnumbering active permits as shrinking sales cut into state and local tax collections, including in San Diego.
A major cannabis-sector fund posted a negative 67.40% one-year return through June 30, 2025, versus a 15.16% gain for the S&P 500, underscoring investor doubts that legalization would displace illicit dealers.