Legal cannabis sales in the U.S. fell for the first time since adult-use retail stores opened more than a decade ago.
According to the new U.S. Cannabis Jobs Report released by Vangst and Whitney Economics, sales in 2025 were down 3.1 percent to $29.1 billion. The report placed the blame squarely on price compression.
"In-store checkout data indicates that the number of items in a consumer’s basket, in most states, remained about the same or slightly increased over the past year. At the same time the transaction value —the total cost of goods in the basket— remained steady or decreased," the report states. "This is a great value deal for consumers but it puts retailers in a pinch. Store operators are seeing smaller average basket value even as they’re scrambling to absorb higher operating costs—with inflation driving up fuel, utilities, contracted services, etc."
As total sales slid slightly, so too did the U.S. cannabis workforce. The report said employment in America’s legal cannabis industry declined 2.7% in total job numbers last year. However, six state markets recorded double-digit job growth, with New York more than doubling its head count in just 12 months.
"The Empire State added an astonishing 16,160 jobs to become the nation’s third largest cannabis employer with 28,660 jobs," the report states.
Despite the downturn, Vangst and Whitney Economics said there's a "potential game-changer" in the near future when medical cannabis is reclassified as a less dangerous drug. Those benefits could come in the form of tax breaks and a boost to cannabis research.
