Arizona Is Among 11 States On Pace to Sell Over Billion Dollars in Marijuana in 2024

11 states will likely surpass the $1 billion in total marijuana sales at state-licensed dispensaries in 2024.

California, which had the 5th biggest economy in the world in 2023, is projected to remain the world’s largest cannabis economy with more than $4.7 billion in recreational and medical marijuana sales in 2024.

But California is one of four states where sales are expected to shrink this year compared to 2023 totals. Marijuana retail markets in Arizona, Colorado and Washington have also been on the downturn.

Arizona’s marijuana market is currently facing one of the biggest setbacks in the nation compared to its peers. Arizona licensed dispensaries are on pace to ring up $1.33 billion in total cannabis sales in 2024, which represents a 7.5% decrease from the $1.44 billion in marijuana sales from 2023.

Arizona’s limited cannabis dispensary license structure allows for roughly 160 dispensaries, or about 2.2 dispensaries per 100,000 persons. The state’s adult-use market remains unsaturated compared to neighboring New Mexico where approximately 1,000 state-licensed dispensaries are competing in a $600 million market in 2024, CBT reported. This means each dispensary in Arizona has the opportunity to bring in roughly $8.3 million in sales in 2024, whereas the each dispensary in New Mexico only has the opportunity to bring in about $600,000 in sales in 2024.

Images: Cannabis Business Times