Arizona’s Cannabis Sales Experience Downturn in 2024

LOS ANGELES- In 2024, Arizona’s combined medical and adult-use cannabis market saw a decline, with total sales amounting to $1.1 billion, a decrease from the nearly $1.3 billion recorded in both 2022 and 2023.

The average price of cannabis products also experienced a reduction, falling from $19.92 in January 2024 to $18.37 in January 2025, as reported by cannabis intelligence firm Headset.

Tax revenue collected by the state mirrored this downward trend. In 2024, Arizona amassed $245.3 million from cannabis-related taxes, comprising $151.2 million from the 16% excise tax on adult-use sales and $75.7 million from standard sales taxes.

Industry experts attribute the decline to evolving consumer behavior, heightened market competition, and the proliferation of unregulated sales channels. Michael Shew, Operations Director at Tucson dispensary Earth’s Healing, noted these factors as significant contributors to the reduced revenue.

This trend aligns with patterns observed in other mature cannabis markets, where initial growth is often followed by market corrections and stabilization. As the industry continues to evolve, stakeholders are closely monitoring these developments to adapt to the changing landscape.