The cannabis industry in the United States and Canada continues to undergo a significant period of consolidation and rationalization, as evidenced by licensing data from the third quarter (Q3) of 2025. The United States saw a 1% drop in total active business licenses, falling to 37,555, marking a continuation of a multi-year decline that began in late 2022.
Canada’s active business licensing exhibited relative stability in Q3, capping a two-year decline of 15%, underscoring similar pressures of market maturation and consolidation. The quarter did show a nascent spark in new Canadian applications, though from a historically low base.
This report provides a detailed, section-by-section analysis of the Q3 2025 licensing landscape. It examines national totals, license type dynamics, state and provincial variations, and the indicators of future market growth, culminating in an assessment of the industry’s current trajectory and underlying forces.
