[[{“value”:”
After falling in 2024, marijuana
sales in Arizona accelerated their slide in the first quarter of 2025,
falling more than 13% over the prior year.
The decline was led by a sharp drop
in recreational cannabis sales in March. Adults purchased just $82
million of marijuana products for the month, almost $20 million less
than they did in 2024. Those sales reports are likely to be revised
upward next month, but revisions typically only reflect minor
adjustments.
For the first three months of the
year, adult-use marijuana sales were $261 million — down more than $27
million, a 9.6% drop from last year.
But that’s nothing compared to the
foundering medical marijuana industry, which saw a 28.3% year-over-year
decrease. The $52 million in sales for the quarter were almost $21
million less than in 2024.
The $1.3 billion in combined medical
and recreational sales in 2024 was almost 10% less than in 2023, and
about 14% lower than 2022 sales figures.
As the market has matured, and softened, the disparity between medical and adult-use cannabis sales continues to expand.
In 2021, the year the recreational industry launched, sales were nearly
evenly split, with 48% of purchases coming from medical marijuana
cardholders.
But as the recreational market
emerged from its infancy, its sales surged and quickly swamped the
medical marijuana market. In 2022, adult use purchases skyrocketed to
almost 66% of sales. They increased to 73% of sales in 2023 and grew
again to 81% in 2024.
Medical sales now represent less than one-third of what they had been in 2021, when the first recreational dispensary opened.
The state collects a 16% excise tax
on recreational sales in addition to the standard 5.6% sales tax;
medical patients pay just the state sales tax. Local jurisdictions
charge an additional 2% or so for all marijuana sales.
One-third of revenue raised by the
excise tax is dedicated to community college and provisional community
college districts; 31% to public safety, including police, fire
departments, fire districts and first responders; 25% to the Arizona
Highway User Revenue Fund; and 10% to the justice reinvestment fund,
which is dedicated to providing public health services, counseling, job
training and other social services for communities that have been
adversely affected and disproportionately impacted by marijuana arrests
and criminalization.
Overall cannabis tax collections in
2024 were almost $190 million; about $170 million came from the excise
tax on adult-use sales, with a bit more than $20 million the result of
medical marijuana purchases.
As the market has matured, and softened, the disparity between medical and adult-use cannabis sales continues to expand.
In 2021, the year the recreational industry launched, sales were nearly
evenly split, with 48% of purchases coming from medical marijuana
cardholders.
But as the recreational market
emerged from its infancy, its sales surged and quickly swamped the
medical marijuana market. In 2022, adult use purchases skyrocketed to
almost 66% of sales. They increased to 73% of sales in 2023 and grew
again to 81% in 2024.
Medical sales now represent less than one-third of what they had been in 2021, when the first recreational dispensary opened.
The state collects a 16% excise tax
on recreational sales in addition to the standard 5.6% sales tax;
medical patients pay just the state sales tax. Local jurisdictions
charge an additional 2% or so for all marijuana sales.
One-third of revenue raised by the
excise tax is dedicated to community college and provisional community
college districts; 31% to public safety, including police, fire
departments, fire districts and first responders; 25% to the Arizona
Highway User Revenue Fund; and 10% to the justice reinvestment fund,
which is dedicated to providing public health services, counseling, job
training and other social services for communities that have been
adversely affected and disproportionately impacted by marijuana arrests
and criminalization.
Overall cannabis tax collections in
2024 were almost $190 million; about $170 million came from the excise
tax on adult-use sales, with a bit more than $20 million the result of
medical marijuana purchases.
“}]] After falling in 2024, marijuana sales in Arizona accelerated their slide in the first quarter of 2025, falling more than 13% over the prior year. Read More
