Q1 2025 Highlights: New York Drives Limited Gains While Canada’s Industry Continues Decline
The first quarter of 2025 marked a period of stabilization in the U.S. cannabis licensing market, following years of contraction and volatility. Total active licenses saw minimal growth (less than 1%), reflecting a plateau in market expansion. Meanwhile, approved/pending and pre-licensing activities declined, signaling a cooling interest in new market entry. Canada, however, continued its downward trend, with active licenses falling to a four-year low. Key trends included the dominance of cultivation and retail licenses, the rise of vertically integrated operators (particularly in New Mexico), and the outsized influence of New York’s adult-use market on national figures. State-level dynamics varied, with New Mexico and New York leading in growth, while Oklahoma and Oregon experienced significant declines.
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