Select a state below to see basic information and our assessment of its cannabis market.
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Select a state below to see basic information and our assessment of its cannabis market.
Alaska is the least dense state in the United States and the 48th least populated state. Despite its small population size and density, cannabis sales have continued to prevail and are steadily on the rise. Alaska is the only legalized state with a very specific cannabis tax structure.
Cannabis sales in Alaska are expected to steadily rise within the next three years.
No stated licensing caps and no required vertical integration makes Alaska a great market for opening a new business.
Wholesale prices remain strong giving the illicit market a leg up.
Very specific wholesale tax structure. No state tax. Product is taxed at the wholesale price.
With its high population and cannabis-friendly culture, California is by-far the largest cannabis market in the US. This potential is tempered by intra-market competition and a regulatory/licensing and tax structure that can be difficult to navigate and turn a profit.
High population/tourism make this the largest cannabis market in the US.
No state-level caps but dictated at the jurisdiction level. Licensing fees can be high (depending on revenue). Currently long delays in license approval.
Well-known as the largest market, very competitive. However, broad geography and multitude of markets gives opportunities to many.
California has one of the highest cannabis tax rates in the US.
Currently 2.3% of Arkansas residents are registered medical marijuana patients. Arkansas also happens to be one of the harshest states in the nation when it comes to cannabis possession policy. A person who is found with less than 4 ounces of cannabis can spend up to 1 year and jail and have to pay a $2,500 fine. Along with a few other states, citizens of Arkansas will try for a recreational cannabis measure on the 2022 ballot initiative.
About half of the Arkansas cannabis market has been capitalized on. This leaves room for potential entry.
The licensing fees are average – there are annual fees as well.
Competition in Arkansas is overall good. There is room for competition in the market.
No taxes on medical cannabis.
The Delaware cannabis market has been slowly growing since legalization. The state is on the road to adult-use legalization, especially since Delaware is so close to surrounding states that have already legalized recreational cannabis.
No market potential in Delaware since there are only 3 dispensaries allowed.
Strict and expensive.
With 3 licensed operators in a small state, competition is moderate.
No tax
The Arizona cannabis market is booming and the state expects to sell over $1,000,000,000 in 2021, collecting over $150,000,000 in tax revenue. The Arizona cannabis market pace is faster than Colorado’s, for comparison.
There is great potential in Arizona to have a successful cannabis business since the market is relatively new and booming.
Licensing is rather inexpensive. Vertical integration makes licensing easier.
There are many MSO’s in the Arizona cannabis market that inhibits smaller shops to prosper. Competition in Arizona’s cannabis market is high.
Lower excise tax, low sales tax. Very average tax structure.
Colorado was one of 2 states to legalize recreational cannabis for the first time in 2012. The state has some of the best experience in administering licensing and licensing structure. In February 2021, Colorado opened up for delivery licenses on a Social Equity basis. Since Colorado is one of the original cannabis markets, it’s saturated and has established brands.
Expected to increase post COVID-19 restrictions. The licensing distribution has very intricate and lengthy laws.
No caps. No mandated distribution of licenses.
As Colorado has been legalized for almost 10 years, the market is very saturated.
1 excise tax
Medical use was legalized through legislation passed in 2012. Possession of cannabis among adults age 21 and over became legal in Connecticut on July 1, 2021. Adults cannot have more than 1.5 ounces of cannabis on their person and no more than 5 ounces in their homes or locked in their car trunk or glove box.
Although possession of small amounts of cannabis is now legal, retail stores will not open in Connecticut until May 2022. Some lawmakers believe the date might be pushed back even further as the state undergoes the process of licensing retailers and cultivators.
To get into the business, a lottery will be held to award licenses. Fees to enter the lottery will range from $250 for a food and beverage manufacturer or delivery license to $1,000 for a cultivator license. If an applicant is chosen in the lottery, then additional licensing fees must be paid. Businesses currently involved in the state’s existing medical cannabis program can pay to enter the recreational market, but the fees will range between $1 million and $3 million for a license. More information on starting cannabis businesses will be coming soon from the Department of Consumer Protection, which will be responsible for licensing the new companies.
Each county has limits on the amount of licenses allowed.
1 excise tax per vertical.
The Florida cannabis market is set to boom in the upcoming years, with 2022 expected medical sales to hit the trillion dollar mark. Florida offers a great spot for cannabis investment opportunities in the medical market.
High growth market. The market potential in Florida is great because it is a highly populated state with unlimited dispensary licenses for medical cannabis.
The licensing application is very expensive. No information on fees.
Steadily increasing as the market continues to grow.
Low state sales tax.
Hawaii was the first state to legalize cannabis through the state legislature as opposed to a ballot initiative. Medical sales have been on a steady rise and will only increase as tourism returns to the islands and people begin to move. Recreational cannabis is still not legal in Hawaii.
There are only 8 operations allowed across all islands. This allows for location dominance.
Very expensive licensing fees, licensing is limited.
Low competition – high population compared to limited amount of dispensaries
Low taxes.
The Illinois cannabis market has been doing phenomenal after topping 1 billion in sales during the tumultuous year of 2020. It is projected to continue growing in the next couple years. Monthly sales have been steadily outperforming the previous month’s sales.
There is currently a cap on dispensary and cultivation licenses. This inhibits more business from entering the market.
The cultivation and retail licenses are very expensive along with the annual fees.
The competition in Illinois is very strong for the cannabis industry.
The taxes are rather high. Different types of cannabis products receive different taxes.
Medical cannabis was legalized in Louisiana in 2015. The cannabis market is small in this state, but is expected to boom by 2022. Possession of cannabis in Louisiana was decriminalized in 2021, and the state has hopes of a recreational market in the near future.
The Louisiana medical market is small; there is not market potential with only 10 pharmacies allowed.
Licensing is very inexpensive.
Competition in LA is great for medical pharmacies, as there are only 9 in the state.
Low state sales tax.
Massachusetts was one of the earliest states to legalize medical and adult-use cannabis. It was also one of the only states to shut down cannabis sales during the COVID-19 pandemic. Massachusetts stands out with the largest average dollar amount of goods per purchase at $96.34.
There has been a significant increase in the number of cannabis operations in Massachusetts.
No caps and no mandated distribution.
There are no caps to licenses, but the state is small in physical size compared to other legalized states. Massachusetts is the 3rd most densely populated state in the US which is good for competition in regards to retail stores.
1 excise tax
The Maryland medical cannabis market is flourishing. Annual sales have reached almost half a billion dollars with continued growth expected. The state is under intense pressure to legalize recreationally.
There is great market potential in Maryland for those looking to start a retail, manufacturing and testing lab cannabis business.
The annual licensing fees in Maryland are expensive.
There are 92 dispensaries per capita in Maryland. Competition is rather high.
No taxes.
In October 2020, Maine became the 10th state to launch recreational cannabis sales. Maine took 4 years after legalization in 2016 to begin sales because the state’s former governor was against cannabis. Post-COVID, the sales are set to boom this summer as life returns to normal.
No limit on recreational licenses makes Maine a great market to set up shop.
The fees are low and the amount of licenses are not limited.
No caps on licensing will lead to higher competition.
The taxes are low. Local municipality taxes are banned.
The Michigan cannabis market is on the rise since adult-use legalization took place 3 years ago. Medical cannabis establishments had a 2 year competitive advantage that many people expected to last until November 2021, but the regulation was lifted in November 2020, causing a huge rise in the competitiveness of the market. Previously to November 2020, the regulations required a business owner to have a medical cannabis license to apply for the recreational license. Since this has been lifted, more social equity opportunities have become available.
Michigan is currently experiencing a boom in the cannabis industry, although competition is strong.
There is no state cap, although the amount of each license is up to the local municipality. The annual fees are done on a tier basis for each different license type. See more information below.
The Michigan cannabis market is extremely competitive.
1 excise tax and 1 state tax.
The Minnesota cannabis market is one of the country’s weakest medical markets. There are very strict laws in place that limit the amount of businesses. In June of 2021, cannabis flower was added to the list of cannabis substances allowed for purchase in Minnesota.
There is slim to no market potential in Minnesota due to the strict licensing cap.
One time non-refundable application fee.
High. There are only 2 dispensaries allowed in the state.
No taxes.
Missouri is medically legal, and citizens plan to push for recreational legalization with a ballot initiative for 2022.
There are no caps on medical dispensaries in Missouri. This makes competition high much like Oklahoma.
The annual fees are not high. The application fees are not expensive compared to to other states.
Competition in Missouri is high. There are 192 total dispensaries for medical patients in the state.
No taxes on medical cannabis.
Medical cannabis was legalized in Mississippi during the 2020 election. There were plans to hopefully have the legislature in place by Summer 2021, but that is still underway.
No dispensary licensing caps gives many people an opportunity to join the market.
No licensing details available yet.
No licensing caps will allow for high competition.
No tax for medical cannabis.
Montana is set to open their recreational cannabis market in 2022, as they will begin accepting cannabis dispensary applications on January 1st. This market is brand new, so there is a lot of opportunity in this northern state. Montana is one of the least populated states, giving potential cannabis operators an opportunity to dominate certain areas of the state.
The market is brand new. There is opportunity in Montana for those looking to enter the cannabis industry since they have not yet begun taking applications.
Right now there are no caps on the licenses. This might change before licensing applications open up.
Since Montana is in the very beginning stages of the recreational cannabis market, competition is low.
No statewide tax, just an excise tax.
North Dakota is another state in the early stages of legalization. Citizens hope to place a recreational marijuana bill on the 2022 ballot next year. There are four medical dispensary regions open in the state.
Very limited. Vertical integration is required.
No sign of annual renewal fee, so overall the licensing is not too expensive.
Since there are only 8 dispensaries allowed in a state that is very uncrowded, competition is rather low.
North Dakota only requires a state tax that is low.
The New Hampshire medical cannabis market is highly regulated and has stabilized in 2021. There is opportunity for growth once the state legalizes adult-use cannabis.
There is no market potential in New Hampshire at the moment except for cannabis testing labs.
Licensing is expensive and limited.
Competition is rather low for New Hampshire because there are only 3 licensed dispensaries.
No taxes on medical cannabis.
New Jersey legalized both medical and recreational sales during the 2020 election. As of right now, up to 70% of towns have banned cannabis operations. The remaining 30% will be highly competitive for cannabis sales.
There is great market potential in New Jersey as the market is brand new and population, density and tourism numbers are high.
Licensing is expensive. It’s not too limited at the moment.
Competition is high for New Jersey. Once businesses get approval, we will see how competitive this market becomes.
Taxes are low, social equity taxes are high.
Cannabis is one of New Mexico’s newest booming industries. The structure of the industry is set up quite differently than other states. Dispensaries are called LNPPs, which are licensed non-profit producers. Vertical integration is required in New Mexico as well. The medical cannabis market is on the rise with the introduction of new laws and a stronger licensing structure than the state previously had.
Since vertical integration is required, getting into the cannabis industry in New Mexico requires a significant amount of cash.
Generally there are no caps – it is up to the locality to decide if businesses can operate after the application process.
Cannabis sales have doubled in the past 2 years. New Mexico is starting to have increased competition with their northern border, Colorado. (coloradosun.org)
1 gross receipt tax that has a low range.
Nevada’s adult-use market has been on the rise since legalization in 2018. The distribution of licenses is strict compared to other legalized states. The COVID-19 restrictions in Nevada were some of the most extreme in the nation, causing cannabis sales to decline. Now that they are lifted, Nevada sales on the rise again.
Expected to increase post COVID-19 restrictions. The licensing distribution has very intricate and lengthy laws.
No caps for cultivation, manufacturers, testing labs. Dispensary licenses are capped.
5/16 counties in Nevada allow cannabis operations. Each area has limits on the amount of licenses allowed per county.
1 excise tax per vertical.
The New York cannabis market is projected to be the ‘California of the East’ despite its size. Cannabis in New York is projected to not only have a national impact, but a global one as well because New York is one of the most visited cities in the world.
The New York cannabis market is expected to be equivalent to California’s cannabis market. There is great potential for social equity applicants.
Since vertical integration is required, the licensing fees are extremely high.
Competition in New York is expected to be rather high due to the state’s population size and density.
The tax structure is low compared to other legalized states. The Office of Cannabis Management will be taking over the medical cannabis market and will incorporate the adult-use market.
Although Ohio legalized medical cannabis in 2016, sales did not begin until 3 years later in 2019 with a bumpy start. Ohio’s market has not yet met maturity, so there is projected growth in this state.
There is potential for manufacturers and testing labs in the Ohio medical cannabis market. Other types of licenses are capped and near capacity.
The licensing fees are expensive with annual renewal fees. Dispensaries are subject to a biennial renewal fee.
Competition in Ohio is fair, although it is expected to increase in the upcoming years as the market matures.
Ohio has a low state tax.
Oklahoma has the most dispensaries per capita than in any other legalized state. OK legalized medical marijuana in 2018 with no licensing caps. The House passed a bill in March 2021 that will limit the number of cannabis licenses starting September 2021 to September 2023. If the bill is passed in the Senate, a licensing cap for medical marijuana operations will go into effect in Oklahoma.
No caps on licensing makes Oklahoma a great market for obtaining a cannabis license, which also makes the market extremely competitive.
No caps, although this might change. Licensing fees are the same for growers, processors and dispensaries.
Since Oklahoma has no licensing cap, there are more dispensaries per square mile than any other state.
Oklahoma tax rates are low. There is no local tax, just a state and excise tax.
Oregon was one of the earliest states to legalize medical cannabis. The state is the 7th largest in the country, and yearly sales exceed 1 billion dollars. Although the current market is maturing, it has attracted recent big business deals.
Oregon is currently experiencing a boom in the cannabis industry fueled by the COVID-19 pandemic. Consumers began to shy away from black market suppliers during this time, making the legal market more profitable.
No known limits, no mandated geographical distribution.
There are established markets, but there is room for growth in Oregon for people looking to get into the industry.
1 excise tax that is moderately high.
The Pennsylvania medical market has been on a steady rise since 2019. The market is projected to hit around 1.1 billion in sales by 2024. Since the market has been so successful, there is now a push for licensing acquisition in Pennsylvania.
There is definitely market potential in Pennsylvania for retail operators. A little over 50% of the allotted licenses have been issued.
The licensing is very expensive.
There is healthy competition in the PA medical market.
Low wholesale tax paid to retail operators.
The Rhode Island cannabis market has seen a conservative approach compared to most nearby states like Massachusetts. In June 2021, the Senate passed a bill for recreational legalization in the state. The Rhode Island market hopes to legalize adult-use cannabis during the Fall of 2021. The current medical market is rather limited.
Rhode Island is in the process of reviewing applications for 11 new dispensaries, so there is going to be an increase in market potential for this state.
Licensing is inexpensive compared to most other states.
Competition is rather low, but when the new states begin operation, competition is expected to increase.
Low state tax and monthly tax.
South Dakota is in the early stages of legalization, and voters made history in November 2020 by legalizing medical marijuana and adult-use cannabis in one fell swoop. The law is currently held up by the state Supreme Court so all ratings anticipate future legalization implementation.
Recreational cannabis will most likely be available to purchase mid-to-late 2022. The Department of Revenue has until April 1, 2022, to craft rules and issue regulations for the adult-use program, but it’s unclear how long after that date it will take for stores to be up and running.
While regulators are developing the program details and regulations, cannabis entrepreneurs who hope to win a license should start planning now. A solid business plan and financial model can help put you ahead of the competition with important early steps like raising funds and finding your best location. Four license types will be awarded: Cultivation, Wholesale/Processing, Retail, and Lab/Testing. Patient registration cards will be issued starting November 18, 2021.
The South Dakota Department of Health is required to enact rules related to implementing the medical marijuana program by October 29, 2021. The South Dakota State Legislature is expected to pass laws providing for an adult-use cannabis program by April 1, 2022.
The Department of Revenue will adopt rules and regulations to implement. Adult-use cannabis will be taxed at 15%. Medical marijuana will not be taxed.
Utah began recreational sales in 2020. The state is in the very early stages, but is expected to see growth within the upcoming years.
Since Utah has capped licenses and is only medical, there is not much market potential in this state.
The licensing is capped and all licenses are currently in use.
The state is divided into 4 regions, each region gets a license. Competition is rather weak.
Non-existent. No taxes in Utah on medical cannabis
Cannabis is officially legal in the state of Virginia starting July 1st, 2021. According to MJBizDaily, the Virginia cannabis market will need about 5 years to mature.
There are only 5 permits available for application which create a monopoly market.
Since there are very limited permits and vertical integration comes along with the licensing process, licensing will be very competitive.
There will only be 5 operators to start, so competition will be low.
The taxes are fairly high, there will be a state and excise tax. There is no regulatory structure put in place yet.
Vermont was the 11th state to legalize recreational cannabis in 2018, although adult-use dispensaries aren’t slated to open until October 2022. (vtdigger.org) The state’s existing medical cannabis dispensaries will hopefully be able to begin selling recreationally in 2022. The Vermont cannabis market will add to the Northeast US “cannabis boom.”
The Vermont cannabis market is going to be very small and licensing is going to be extremely limited.
The first recreational licenses will go to existing medical dispensaries, but the second round will go to those who are just getting into the adult-use market.
There is limited product inventory and only a few dispensaries.
There is a combined tax rate that is low compared to other legalized states.
Washington was one of 2 states to legalize adult-use for the first time during the 2012 election. Their medical cannabis program was immersed into the recreational program making the cannabis market 1 entity as opposed to 2 separate operations.
Washington State has one of the oldest cannabis markets in the country. There are many well established brands, so it is difficult to penetrate the market.
No caps and no mandated distribution.
Extremely competitive. Prices are low because there is too much supply.
1 excise tax that is extremely high.
West Virginia opened up patient registration on May 3rd, 2021. Sales are projected to begin in the Fall of 2021.
There is significant growth potential for the West Virginia market as it is in its infancy.
Licenses are capped. Now is a great time to get into the WV market since it is in the initial stages.
TBD
10% dispensary tax