East Vs. West Coast Cannabis: Is Your State Is Winning The $25B Race?

While some U.S. states are seeing substantial growth in cannabis sales, driven by expanding markets and increased consumer demand, others are facing declines due to factors like strict local regulations, market saturation and high tax rates. The cannabis industry remains dynamic, with both new and established markets showing divergent trends across the country.

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Expanding Billion-Dollar Markets

In 2024, 11 states are expected to surpass $1 billion in cannabis sales, including Maryland, which will bring in $1.13 billion, up 43.8% from 2023. According to an extensive report from Cannabis Business Times, the U.S. cannabis industry alone is projected to see $25+ billion in retail sales across 11 states in 2024.

Missouri's sales are forecasted to hit $1.44 billion, growing by 7.7%. Florida, still a medical-only market, is expected to bring in $2.15 billion, a 6.1% increase. Meanwhile, Michigan continues to rise with projected sales of $3.32 billion, an 8.6% jump from 2023.

Comparative Analysis: California’s Decline vs. Michigan’s Rise

California's cannabis market, the largest in the world, is expected to see a 3.4% decrease in sales, dropping to $4.72 billion in 2024 from nearly $4.9 billion in 2023. High excise taxes, which will rise from 15% to 19% in 2025, and a decline in licensed cultivators have driven this contraction.

Meanwhile, Michigan's market is booming. With $3.32 billion in projected sales for 2024, Michigan benefits from 8.7 dispensaries per 100,000 people, compared to California's 3.2. Cannabis sales per capita in Michigan stand at $330, while California trails at $120.

Read Also: Michigan Beats California In Legal Cannabis Sales: Why Is Golden State’s Weed Industry Losing Its Shine?

East Coast Expansion Vs. West Coast Struggles

On the East Coast, New York’s cannabis tax revenue jumped 40% in the second quarter of 2024, bringing in $28 million. According to September data on cannabis tax revenue from the United States Census Bureau, Massachusetts also saw a 21% rise, generating $50 million in taxes.

In contrast, California's tax revenue fell by 1.1%, contributing $155 million. Missouri, despite leading in sales, saw a 10% drop in sales tax collection to $18 million due to recalls, while other Midwestern states like Illinois increased by 3% to $71 million, Minnesota rose by 1.8% to $3.5 million, and Michigan, despite a 3.7% decline, contributed $74 million in tax revenue.

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