A Year in Review: Cannabis Trends and Stats 2025
The U.S. cannabis industry in 2025 marked a year of transition. After a decade of rapid growth driven by legalization and early investment, the market began to mature. Operators faced increased regulatory scrutiny, tighter access to capital, and ongoing price compression, while consumer demand and product innovation remained strong across key states.
Rather than headline-driven expansion, 2025 was shaped by operational discipline. Cannabis businesses focused on compliance, risk management, and sustainable growth as consolidation continued and margins tightened. At the same time, ongoing federal reform discussions and new state-level developments signaled long-term opportunity for well-prepared operators and investors.
This 2025 cannabis industry year-in-review examines the latest U.S. cannabis statistics, market trends, and regulatory updates that defined the year. From market size and sales performance to emerging risks and growth opportunities, this guide offers a clear, data-driven assessment of the cannabis industry’s current state and key considerations for businesses moving forward.
- Opportunities In The Cannabis Industry
- Opportunities In The Cannabis Industry
- U.S. Cannabis Legalization Overview
- U.S. Cannabis Legalization Overview
- Trends in Cannabis Consumption
- Trends in Cannabis Consumption
- Health Risks of Cannabis Use
- Health Risks of Cannabis Use
- Empower Your Cannabis Journey with AlphaRoot
- Empower Your Cannabis Journey with AlphaRoot
Opportunities In The Cannabis Industry
America saw a swift change in people’s perception regarding cannabis a few years back. While federal legalization of cannabis is still pending, more than half of all U.S. States allow some form of cannabis usage.
Following the legalization and the market’s growing CAGR (Compound Annual Growth Rate), more startups are being established ultimately creating more job opportunities.
Here are some things you need to know about the opportunities within the cannabis industry:
There are nearly 15,000 cannabis dispensaries in the United States, primarily located on the West Coast and Northeast, but also in interior states such as Michigan, Oklahoma, and Colorado.
Regulated cannabis revenues for 2025 were projected to be between $29.1 – $29.6 billion, a 1.67% decrease from the $30.1 billion achieved in 2024.
The average monthly spend on cannabis products per consumer was $150 in 2023, with edibles and concentrates seeing the highest.
The U.S. Cannabis market size was valued at $38.50 billion in 2024 and is expected to grow at a CAGR of 11.51% until 2030.
Flower, vapes, edibles, and pre-rolled accounted for the biggest share of sales in 2025 with $11.8 billion, $7.7 billion, $4.3 billion, and $4 billion in sales, respectively.
Pre-rolls are expected to experience the highest CAGR, with a 10% growth rate. The cannabis beverage category is another to watch. The sector is projected to grow to $370 million by 2029, a CAGR of 6.1%.
Nearly 25% of all dispensary sales now happen online, including delivery and curbside pickup.
As of August 2024, the average annual wage for a cannabis industry worker in the U.S. is $125,894, or $60.53 per hour.
The Cannabis Industry in the U.S. supports 440,445 full-time equivalent jobs as of early 2024. This number represents a 5.4% year over year increase, adding 22,952 new cannabis industry jobs over the past 12 months.
The global cannabis market size is projected to grow from $57.18 billion in 2023 to $444.34 billion by 2030, exhibiting a CAGR of 34.03%.
Opportunities In The Cannabis Industry
America saw a swift change in people’s perception regarding cannabis a few years back. While federal legalization of cannabis is still pending, more than half of all U.S. States allow some form of cannabis usage.
Following the legalization and the market’s growing CAGR (Compound Annual Growth Rate), more startups are being established ultimately creating more job opportunities.
Here are some things you need to know about the opportunities within the cannabis industry:
There are nearly 15,000 cannabis dispensaries in the United States, primarily located on the West Coast and Northeast, but also in interior states such as Michigan, Oklahoma, and Colorado.
Regulated cannabis revenues for 2025 were projected to be between $29.1 – $29.6 billion, a 1.67% decrease from the $30.1 billion achieved in 2024.
The average monthly spend on cannabis products per consumer was $150 in 2023, with edibles and concentrates seeing the highest.
88% of Americans
An overwhelming majority of U.S. adults (88%) say that marijuana should either be legal for medical use only (32%) or that it should be legal for medical and recreational use (57%).
25% of all dispensaries
California has more dispensaries than any other state. As of February 2024, the state has 3,659 dispensaries, more than double the amount in the second-highest-ranking state.
24 out of 50 States
24 out of 50 States allow legal recreational usage of cannabis.
42 U.S. States
As of June 2025, the medical use of cannabis has been legalized in 42 states and the District of Columbia.
74% of Americans
74% of Americans live in a state where marijuana is legal for either recreational or medical use.
12% of Americans
As of July 2025, only 12% of Americans are against the legalization of cannabis.
88% of Americans
An overwhelming majority of U.S. adults (88%) say that marijuana should either be legal for medical use only (32%) or that it should be legal for medical and recreational use (57%).
25% of all dispensaries
California has more dispensaries than any other state. As of February 2024, the state has 3,659 dispensaries, more than double the amount in the second-highest-ranking state.
24 out of 50 States
24 out of 50 States allow legal recreational usage of cannabis.
Trends in Cannabis Consumption
As the cannabis market matures, consumption trends are becoming more nuanced. Data from 2025 highlights meaningful shifts in how consumers use cannabis, which products they prefer, and who is driving growth across legal markets.
55 million Americans
Today, 55 million Americans use marijuana, and 72% believe that it is healthier than consuming alcohol regularly. The results of a Yahoo News/Marist national survey revealed that approximately 35 million Americans use marijuana monthly.
15% of active marijuana users
Data from Gallup (2023 and 2024) shows that 15% of Americans are active marijuana users. 42% are considered “intensive users,” meaning they consume daily or near-daily.
21% use THC flower/buds
Statista found that 21% of all Americans between the ages 18 and 64 use THC flower/buds.
46% increase
Studies show that cannabis use among those 65 and older surged nearly 46% from 2021 to 2023. This shows how cannabis users have changed in recent years, with pronounced increases in use by older adults who are college-educated, married, female, and have higher incomes.
Pain Reliever
A 2025 study showed that 45% of the patients who used medical cannabis to treat pain-related conditions experienced a clinically meaningful improvement in pain interference and in sleep quality scores.
64% of cannabis users
64% of consumers use cannabis to relax. Meanwhile, 45% say cannabis helps them fall asleep.
Gen Z and Millennial Sales
Together, Gen Z and Millennials make up 62.8% of all U.S. cannabis sales and 70.8% of all Vapor Pen sales. Millennials are leading the charge on pre-rolls with a total spend of $103.9 million in September 2024.
1 in 3 American women
More than 1 in 3 women consume cannabis in the U.S., which means there are more female cannabis consumers than males.
29% of women
29% of female consumers prefer non-flower products, while only 15% of men prefer the same.
62% of consumers
There’s a cultural trend in the rise of cannabis as a replacement for alcohol and other drugs. 62% of consumers said that when they have a choice between cannabis and alcohol, they choose cannabis.
Alcohol Replacement
A survey from CivicScience found that 21% of people doing Dry January are replacing alcohol with cannabis and CBD.
Benefits for PTSD
Cannabis effectively reduces anxiety and depression symptoms in people with post-traumatic stress disorder.
Trends in Cannabis Consumption
As the cannabis market matures, consumption trends are becoming more nuanced. Data from 2025 highlights meaningful shifts in how consumers use cannabis, which products they prefer, and who is driving growth across legal markets.
55 million Americans
Today, 55 million Americans use marijuana, and 72% believe that it is healthier than consuming alcohol regularly. The results of a Yahoo News/Marist national survey revealed that approximately 35 million Americans use marijuana monthly.
15% of active marijuana users
Data from Gallup (2023 and 2024) shows that 15% of Americans are active marijuana users. 42% are considered “intensive users,” meaning they consume daily or near-daily.
21% use THC flower/buds
Statista found that 21% of all Americans between the ages 18 and 64 use THC flower/buds.
Health Risks of Cannabis Use
While cannabis offers potential benefits, it's also essential to consider the associated health risks. The latest findings shed light on health related concerns, enabling informed decision making in the evolving landscape of cannabis use.386 deaths
A 2022 study shows that 386 people died in Florida owing to the use of synthetic cannabinoids. Among those who died, 87.8% were males, and 28% were aged between 45 50 years. Road accidents under the influence of cannabis remained to be the leading cause of death for these deceased.
Psychosocial activities may suffer
Cannabis use in adolescence is consistently associated with impairments in multiple domains of psychosocial functioning, including interpersonal relationships, academics, and socioeconomic attainment.
Pregnancy risks
Using cannabis during pregnancy may affect fetal brain development and increase the risk of premature birth and potentially stillbirth.
Attempts of suicide
A 2022 study showed that cannabis use may influence thoughts, plans, and attempts of suicide among young adults.
Risks of developing mental disorders
Approximately 1 in 4 patients with schizophrenia are also diagnosed with cannabis use disorder (CUD). Cannabis use is also associated with 2 4 times the likelihood of developing psychosis in healthy individuals.
Health Risks of Cannabis Use
While cannabis offers potential benefits, it's also essential to consider the associated health risks. The latest findings shed light on health related concerns, enabling informed decision making in the evolving landscape of cannabis use.386 deaths
A 2022 study shows that 386 people died in Florida owing to the use of synthetic cannabinoids. Among those who died, 87.8% were males, and 28% were aged between 45 50 years. Road accidents under the influence of cannabis remained to be the leading cause of death for these deceased.
Psychosocial activities may suffer
Cannabis use in adolescence is consistently associated with impairments in multiple domains of psychosocial functioning, including interpersonal relationships, academics, and socioeconomic attainment.
Empower Your Cannabis Journey with AlphaRoot
The U.S. cannabis industry is rapidly evolving, driven by expanding legalization, entrepreneurial innovation, and shifting consumer behaviors. Understanding the latest statistics and trends is essential for navigating this dynamic market, whether you’re an investor, entrepreneur, or industry stakeholder. As cannabis continues to gain acceptance and reshape the economic landscape, staying informed will be key to seizing opportunities and mitigating risks in 2024 and beyond.
AlphaRoot is here to help you navigate the unique risks of the cannabis industry with tailored risk management solutions that go beyond traditional insurance. Ready to protect your business and stay ahead of industry challenges? Get a quote today and see how AlphaRoot can support your journey with comprehensive coverage and expert guidance.
Get A Quote NowEmpower Your Cannabis Journey with AlphaRoot
The U.S. cannabis industry is rapidly evolving, driven by expanding legalization, entrepreneurial innovation, and shifting consumer behaviors. Understanding the latest statistics and trends is essential for navigating this dynamic market, whether you’re an investor, entrepreneur, or industry stakeholder. As cannabis continues to gain acceptance and reshape the economic landscape, staying informed will be key to seizing opportunities and mitigating risks in 2024 and beyond.
AlphaRoot is here to help you navigate the unique risks of the cannabis industry with tailored risk management solutions that go beyond traditional insurance. Ready to protect your business and stay ahead of industry challenges? Get a quote today and see how AlphaRoot can support your journey with comprehensive coverage and expert guidance.
Get A Quote Now