US Legal Cannabis Sales Fall 3.3% to $29.1 Billion as Jobs Drop 2.9%
Updated
Updated · mmjdaily.com · Jun 23
US Legal Cannabis Sales Fall 3.3% to $29.1 Billion as Jobs Drop 2.9%
1 articles · Updated · mmjdaily.com · Jun 23
Summary
$29.1 billion in U.S. legal cannabis retail sales marked the industry's first year-over-year decline since adult-use markets opened, while employment fell 2.9% to 412,500 jobs by early 2026.
A $150 basket from three years ago now costs about $97 as harvest oversupply keeps wholesale prices sliding; shoppers buy similar amounts, but retailers collect less revenue while facing higher operating costs.
California posted the biggest employment hit, losing 17,123 jobs, or 22%, as growers exited licensed cultivation and more than half its counties still barred legal sales; Florida, Illinois and Michigan also shed jobs.
New York added 16,160 jobs to reach 28,660 after licensed stores grew from about 300 to more than 520 in 2025 and enforcement shut nearly 1,400 illegal shops, underscoring the report's link between retail access and legal demand.
Despite seven straight quarters of shrinking approved and pending licenses and tax pressure in states such as Michigan and Illinois, the report still projects sales to recover to $30.5 billion in 2026 and $43.3 billion by 2030.
New York’s cannabis job market is booming, so why are many of its new businesses reportedly on the verge of failure?
Is the cannabis market's first sales decline a sign of crisis or simply a healthy, overdue market correction?
With cannabis now Schedule III, what unexpected federal rules might disrupt state-legal businesses and their consumers?
US Cannabis Market 2025-2026: From $37B Highs to $11B Lows and the Road to Recovery
Overview
In 2025, the US legal cannabis industry faced a dramatic market correction, with leading companies losing significant value due to oversupply and falling wholesale prices. Despite these pressures, the industry continued to expand at the state level, as seen with Minnesota opening its first licensed dispensary. This period marked a turning point, highlighting both the challenges of price compression and the resilience of state markets. As the industry moves into 2026, optimism is growing, driven by potential federal tax reforms and ongoing advocacy, setting the stage for recovery and future growth amid a complex regulatory landscape.