Newer Markets Drive Cannabis Growth As Mature States Decline

Last week, SNDC reported on the state of the top five cannabis markets in the U.S., a group that generated roughly $10.3 billion in sales for the first nine months of 2024. This week we’re turning to the sixth- through tenth-ranked markets, which accounted for $4.7 billion in sales last year through September. Newer markets like Missouri and Maryland have been leading growth lately, as more mature markets like Colorado and Arizona have seen declines. The figures in this article cover dispensary sales and exclude hemp-derived THC products often sold in chain retail, liquor stores, and convenience channels.

Missouri, the sixth-largest cannabis market in the U.S., is the smallest of the nation’s six billion-dollar markets at just under $1.1 billion in sales through September. Missouri has been a market on the upswing, seeing sales rise by 13.3% over the first three-quarters of last year. According to data from Headset, Missouri’s monthly sales flattened out some by the end of the year, with the state seeing $123.3 million in sales for December.

Consumers in Missouri reach for flower, vape pens, and edibles above all other form factors. In December, vape pens showed strong momentum, rising 10% to $31 million, while flower and edibles were down 5.2% to $53 million and 6.1% to $17 million, respectively. For flower, Codes (a Missouri-exclusive brand), Elevate, and Daybreak (also exclusive) lead the way, with Good Day Farms and Galactic also popular choices. Select (Curaleaf), Rove, and Good Day Farms are vape market leaders, with edibles from Wyld, Select, Wana (Canopy USA), and Grön proving popular.

Behind Missouri are Colorado and Arizona, two markets that faced significant challenges in 2024. Both states were comfortably above $1 billion in sales through the first nine months of 2023. In 2024, however, Colorado saw a nearly 20% drop to $944 million, and Arizona declined by 13% to $934 million. By December, the decline in Colorado slowed, with state sales of $92.7 million, only an 8.3% decrease over the previous year. Arizona’s decline accelerated in December, with sales down 20% to just under $91 million.

In Colorado, the downward trend was driven by flower, which fell 20% to $28.5 million for December. Vapes and edibles—the other two leading categories—were both up, with the former growing 1.1% to $27.5 million and the latter up 12% to $19 million. Trinidad Cultivation Services bulk flower offerings are popular in Colorado, with the company landing four of the 10 best-selling products over the past 30 days. Other leading flower brands come from Seed & Strain Cannabis, Good Chemistry Nurseries, and 710 Labs. Leading vapes are marketed by AiroPro, Seed & Strain, and Cali-Blaze, among others. Wyld and Wana edibles are popular in Colorado and, though coming from a smaller base, beverages from Keef Cola, Dixie Elixirs, and Ript are performing well. Colorado’s cannabis beverage market was up 31% to $1.5 million in December.

In Arizona, all three leading categories—flower, vapes, and pre-rolls—declined in December. Flower showed the steepest decrease at 27% to $35 million. Vapes and pre-rolls were down 10% and 16%, respectively, to $24 million and $15 million in sales. Cheech & Chong’s is a leading flower brand in the state, with five of the top 10 best-selling products over the last month, according to Headset. Other leading players in Arizona include Stiiizy, Find, Select, Jeeter, and Savvy. Cannabis beverages sold just under $1 million in December, with offerings from Keef Cola, Sip Elixirs, and Cannabis Quencher among the market leaders.

Washington, another mature market, dropped by 3.3% through September 2024 to $882.9 million. By December, however, statewide sales were on the upswing, rising 1.4% to $109.1 million. Uniquely, Washington’s leading category for cannabis is vape pens, which saw sales up nearly 20% to $35 million for December. Pre-rolls, edibles, and beverages all grew as well, although overall growth was sapped by a nearly 15% decline in flower to $31 million.

Among Washington’s leading vape producers are Mfused, Hellavated, and AiroPro, with flower from Cookies and Phat Panda doing well, as well as pre-rolls from Mfused and Hellavated. The state’s cannabis beverage market was up nearly 30% to $4.5 million with Journeyman, Green Revolution, and Agro Couture leading the way. Washington consumers reaching for beverages are partial to high-potency, low volume shots, with 100-mg. per 2-ounce drink a popular option.

Maryland, the 10th-largest cannabis market in the U.S., is also one of the newer adult-use markets, with sales beginning in July 2023 and reaching $520 million by September of that year. For the first nine months of 2024, Maryland sales rocketed 63.2% to $848.7 million. Sales in December were 2.2% to $94.3 million. Flower is king in Maryland, outselling vapes two-to-one in dollar terms. In December, Maryland consumers bought nearly $45 million in flower, $22.5 million in vape pens, and $11.5 million in edibles. Though a tiny fraction of the market at less than $500,000, Maryland’s cannabis beverage sector doubled in size in last month. Leading brands across all categories in the state include Wyld, Rythm, Select, and &Shine.—Shane English

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