The article outlines the top 20 U.S. states with the highest rates of cannabis consumption. Vermont tops the list, with nearly a quarter of its residents aged 12 and older using cannabis in the past month.
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States like Alaska and Oregon follow, each facing unique challenges, such as high taxes or oversupply, which affect legal sales. Washington and Maine also rank high due to factors like tax incentives and strong demand.
Several trends highlight cannabis’s growing integration into both U.S. markets and lifestyles. For example, the legal cannabis industry now employs over 440,000 people, with legalization measures expected on ballots in states like Florida and South Dakota. Moreover, the rapidly expanding cannabis-infused beverage segment is expected to reach over $1.35 billion globally by 2030, spurred by innovative product launches from companies like Tilray Brands.
The growing demand and economic impact of cannabis are underscored by other U.S. states that have embraced legalization for medical or recreational use. While some states like Oklahoma and Minnesota are still developing frameworks for full-scale sales, others, such as California and Illinois, have built robust markets, contributing significantly to state economies.
These insights demonstrate the state-by-state variability in the cannabis market and the broader trends as more states consider legalization.
The U.S. cannabis industry is booming, with certain states leading in consumption and market development. Here’s a breakdown of the top 20 states by marijuana use, alongside the dynamics shaping these states' cannabis markets:
20 States with the Highest Weed Consumption
Vermont: Nearly a quarter of Vermonters aged 12+ reported recent cannabis use. The state launched recreational sales in 2022, quickly reaching $120 million in taxable sales.
Alaska:
Alaska’s cannabis tax, the nation's highest at the wholesale level, has driven significant black market competition, with over half of sales occurring outside the legal system.
Oregon:
With abundant supply, Oregon sees some of the lowest cannabis prices, remaining under $4 per gram due to oversupply.
New Mexico:
Since legalizing recreational cannabis in 2022, New Mexico has surpassed $1 billion in sales, partly fueled by tourists from Texas, where cannabis remains illegal.
Washington:
Washington state, with one of the highest cannabis excise taxes (37%), collected $465 million from excise taxes in 2023, benefiting patients by exempting them from this tax.
Maine:
The state recorded $217 million in sales across recreational and medical dispensaries, bolstered by a strong network of retail outlets.
District of Columbia: Although retail cannabis is restricted, D.C. has a robust grey market, where businesses 'gift' cannabis with other purchases.
Nevada:
Las Vegas opened its first cannabis lounge in 2024, tapping into an estimated demand of 3.2–4.4 million pounds annually.
Massachusetts: Retailers sold over $7 billion in medical and recreational cannabis over the past five years, indicating a maturing market.
Colorado:
The once-booming market has seen price drops due to increased competition, with Denver emerging as the “Weed Capital” of 2024.
Arizona:
Recreational cannabis tax revenue reached $172.8 million, aiding education in the state.
Michigan:
Detroit ranks high for per capita cannabis use, and Michigan has the highest per capita sales nationwide.
Montana:
Montana’s tax revenue from adult-use and medical cannabis reached over $57 million in 2023.
Rhode Island:
After legalizing recreational use in 2022, Rhode Island reported $105 million in combined cannabis sales during its first year.
Oklahoma:
Medical cannabis prices are relatively low due to high competition among dispensaries, though recreational use remains illegal.
Illinois:
The state reached $1 billion in cannabis sales by mid-2024, with around 100 adult-use dispensaries open.
Missouri:
The new recreational market in Missouri brought in over $1.4 billion in its first year of sales.
New York:
New York has seen early growth in legal cannabis sales, with $260 million in revenue from January to June 2024.
Minnesota:
Legalized in 2023, Minnesota’s THC beverage market has grown to a $200 million industry, with full retail sales expected in 2025.
California:
As the largest cannabis market by revenue, California achieved $5.1 billion in recreational sales in 2023, reflecting its reputation for quality.
This list highlights both established markets like California and emerging ones like New York and Minnesota. The increasing legalization and public acceptance across these states underscore cannabis’s expanding role in the American economy.
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