How the industry is performing and where it's headed

For the cannabis industry, the only constant is change. Cannabis regulations, laws, sentiment, technology, and business practices evolve each year—meaning there’s a long list of new data and insights to unpack.

To paint a clear picture of the cannabis industry, we scoured the internet to find the most important and relevant marijuana statistics for 2026.

In this report, you’ll see marijuana use statistics, the national sentiment around weed acceptance/accessibility, marijuana market growth, employment trends, and legal facts.

Let’s dive into the findings.

Marijuana usage statistics

15% of Americans identified as “current users”

The most recent data from Gallup (combined from 2023 and 2024) shows that 15% of Americans are active marijuana users, which is up slightly (from 14% in 2021-2022).

Similarly, according to the 2024 National Survey on Drug Use and Health (NSDUH), 22.3% of people age 12+ reported using cannabis in the past year. This accounts for 64.2M people.

While marijuana use has been on the rise, both of these sources suggest a slowdown in that trend. Both sources report minimal change since 2022.

Of the people who are cannabis consumers, 42% are considered “intensive users,” meaning they consume daily or near-daily. For the first time in recorded history, there are more daily cannabis users than daily alcohol drinkers.

Nearly half of Americans have tried cannabis

According to Gallup, 47% of Americans say they have tried marijuana at some time.

This represents a significant increase from the first time Gallup asked the question in 1969, when only 4% of Americans reported having tried it.

All consumers still prefer flower and pre-rolls

According to BDSA’s retail sales tracking, flower and pre-rolled are the only major categories gaining dollar sales compared to a year ago (3.8% and 3.4%, respectively). And while their forecast through 2029 shows growth in most categories, the primary are still flower, vape, pre-rolled, and edibles.

Statista found that 21% of all Americans between the ages of 18-64 use THC flower/buds. (Here are the best-selling cannabis strains of 2025, according to Leafly, if you’re curious!)

• 16% prefer edibles

• 15% favor cartridges and vapes

• 13% go for pre-rolls

• 6% like extracts

• 4% choose a topical

• 40% of those surveyed like these products in CBD form

• 52% reported not consuming cannabis products at all

Cannabis beverage growth is closing in on pre-rolls

While still a small percentage of total sales, beverages are the fastest-growing category by percentage in 2025.

According to BDSA, beverages make up nearly 1%-dollar share of all cannabis sales, totaling $54.6 million in sales in Q1 2025, with an overall increase of +15% between Q1 2025 and Q1 2024. Though states like Michigan and Ohio grew by 112% and 79%, respectively.

Cannabis use among older adults reaches a new high

7% of adults aged 65 and over who report using cannabis in the past month, according to an analysis led by researchers with the Center for Drug Use and HIV/HCV Research (CDUHR) at the NYU School of Global Public Health. Overall, use among those 65 and older surged nearly 46% from 2021 to 2023.

Their findings show that cannabis users have changed in recent years, with pronounced increases in use by older adults who are college-educated, married, female, and have higher incomes.

More than 1 in 3 American women consume cannabis

Data shows that more than 1 in 3 women consume cannabis in the U.S., which means there are more female cannabis consumers than male.

Cannabis brands are beginning to notice this trend and are investing more heavily in this demographic.

Retailers say they are refocusing shelf space toward products women tend to purchase, like topicals, edibles, tinctures, and beverages.

The U.S. National Institute on Drug Abuse found that, for the first time, women surpassed men of the same age in cannabis consumption in 2023.

Reuters reported that women also comprise 55% of the user base on Jointly, a consumer-focused cannabis product discovery app with over half a million users.

Men and women consume cannabis differently and for different reasons

29% of female consumers prefer non-flower products, while 15% of men prefer the same.

• 27% of men prefer to consume flower

• Just 19% of women say flower is their preference

• 59% of men and 52% of women prefer flower and non-flower

Gallup similarly found that 17% of men (vs. 11% of women) say they smoke marijuana. And men are marginally more likely to be “regular consumers.”

Teen cannabis use remains low in 2025

The 2025 Monitoring the Future survey, an annual national survey of 8th-, 10th-, and 12th-grade students, found that for the fifth consecutive year, teen use of most substances continues to hover around the low mark reached in 2021.

Key Statistics (Past Year Use, 2025 Data):

• 8th Graders: ~8%

• 10th Graders: ~16%

• 12th Graders: ~26%

Younger consumers prefer cannabis vape pens

People are replacing alcohol with cannabis and CBD

A survey from CivicScience found that 21% of people doing Dry January — a popular trend where you abstain from alcohol for the month — are replacing alcohol with cannabis and CBD.

The same survey uncovered that the largest demographic of people replacing alcohol with cannabis are aged 21-24 (34%), followed by 25-34-year-olds (24%).

We’ve seen this trend of younger individuals replacing alcohol with cannabis rising since the pandemic, and it’s not just around Dry January. There's a cultural trend in the rise of cannabis as a replacement for alcohol and other drugs:

• 62% of consumers said that when they have a choice between cannabis and alcohol, they choose cannabis

• 57% said that they have replaced some of their drinking with cannabis

• 40% would like to stop drinking completely

• 73% say that cannabis is healthier than alcohol

Among those who use cannabis for medical purposes, 51% say they have replaced at least some of their prescription medications with cannabis.

Cannabis benefits statistics

Medical cannabis improves the quality of life for veterans and seniors

A study published in Clinical Therapeutics found 91% of military veterans who visit providers for medical cannabis said it has improved their quality of life. Similarly, according to a White House fact sheet, 20% of participating United States veterans reported using fewer opioids as a result of their medical marijuana use.

As marijuana use is more broadly accepted, its prevalence for positive health effects and benefits toward public health are increasing. For veterans struggling with PTSD, substance use, illicit drug use, and more, the cannabis plant has entered as a supplement for traditional health care and prescription drugs.

Older adults find similar QoL benefits: A 2025 study, where 90% of patients used medical cannabis to treat pain-related conditions such as chronic pain and arthritis, 45% experiencing a clinically meaningful improvement in pain interference and in sleep quality scores. Almost all patients reported a preference for oral cannabis products (e.g., extracts, edibles) rather than inhalation products (e.g., flower, vapes), and most preferred oral formulations high in CBD and low in THC.

64% of consumers use cannabis to relax

• 59% of consumers use cannabis for stress relief

• 52% use cannabis to reduce anxiety

• 48% of consumers turn to cannabis for pain management

• 45% use cannabis to improve sleep quality

• 45% say cannabis helps them fall asleep

Many sources have looked at the benefits of cannabis, particularly medical marijuana, for sleep, pain management, nausea/vomiting, mental health disorders, and more.

14% of consumers use cannabis to help them exercise

Cannabis consumers are continuing to crush the lazy stoner stereotype. Data shows that 14% of cannabis consumers use cannabis for exercise.

• 47% of those who consume for exercise say it helps their motivation before a workout

• 56% use it for greater relaxation and enjoyment during the workout

• 48% consume to focus better during their workout

• 31% use cannabis for increased endurance

• 47% say cannabis helps them recover after a workout

• 33% report cannabis supports a faster recovery

However, studies suggest that while cannabis may make exercise more fun, it doesn’t help performance.

16% of adults use cannabis as a sleep aid

About 16% of Americans aged 21 and older say they use cannabis as a sleep aid. That makes marijuana more popular for sleep than prescription sleep aids (12%) or alcohol (11%), but still not quite as common as using supplements (26%) or over-the-counter sleep aids (19%).

Men were more likely than women to say they used cannabis (18% versus 15%, respectively) or CBD products (11% versus 8%) for sleep.

And parents were also more likely than non-parents to use cannabis for sleep. 20% of people with children in their household generally said they used marijuana for sleep (compared to 14% without children).

Psychiatric patients who are prescribed cannabis are less likely to have suicidal thoughts

Acceptance of marijuana in the US

Marijuana for recreational use is legal in 24 U.S. states

As of January 2026, 24 states, the District of Columbia, and Guam have legalized recreational cannabis use for individuals age 21+: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, Rhode Island, Vermont, Virginia, and Washington.

Medical marijuana is now legal in 42 US states

Medical use of marijuana is now legal in 42 states plus Washington D.C. for medical purposes: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Utah, Vermont, Virginia, Washington, and West Virginia.

Support for legalizing cannabis dipped slightly to 87%

According to recent data from Pew Research, 87% of Americans say marijuana should be legal, though the number has dipped slightly since last year.

• 54% think it should be legal for both medical and recreational use (down from 57%)

• 33% think it should be legal for medical use only (up from 32%)

• 12% don’t think it should be legal (up from 11%)

Support for legalization varies greatly by race and ethnicity, age, and partisanship. Most notably, support for full legalization decreases with age: 65% of those ages 18-29 support it.

Though support is sliding a bit, remember the dramatic increase over time. In 1969, only 12% supported legalization.

How Americans view the effects of legal cannabis

• About half of Americans (52%) say that legalizing the recreational use of marijuana is good for local economies; just 17% think it is bad, and 29% say it has no impact

• More adults also say legalizing marijuana for recreational use makes the criminal justice system more fair (42%) than less fair (18%); 38% say it has no impact.

• Americans have mixed views on the impact of legalization on other drug use and community safety.

According to MRI-Simmons’ 2025 National Cannabis Study, 74% of U.S. adults agree that legalization is a smart way to boost tax revenue, and 73% see dispensaries as valuable contributors to local economies.

And this isn’t just theoretical support, with 65% willing to welcome a dispensary in their own city and 54% open to investing in cannabis-related businesses.

79% of Americans live in a county with at least one dispensary

Most Americans now live in a state that has legalized cannabis. Pew Research broke down the details to find:

• 54% of Americans live in a state where the recreational use of marijuana is legal.
• 74% of Americans live in a state where cannabis is legal for either recreational or medical use.
• 79% of Americans live in a county with at least one cannabis dispensary.
• There are nearly 15,000 cannabis dispensaries in the United States.
• California has far more dispensaries than any state: 3,659 at the time of this analysis, more than double the amount in the second-highest ranking state. A quarter of all marijuana dispensaries in the U.S. are in California, and nearly all Californians (99.5%) have a dispensary in their county. Los Angeles County alone has more dispensaries (1,481) than any state other than California itself.
• Oklahoma has the most marijuana dispensaries per capita of any state: 36 dispensaries for every 100,000 residents.

But more telling is the fact that 55% of adults say they would try marijuana if it were legal where they live, including 39% of those who don’t currently consume cannabis.

39% of consumers say they give cannabis to friends and family

Cannabis acceptance is on the rise, and nothing proves it more than 39% of consumers saying they give cannabis products to friends and family.

• 93% of cannabis consumers say their friends know they consume

• 89% of cannabis consumers say their family knows they consume

• 59% of consumers say friends and family are generally supportive of their consumption

• 26% of cannabis consumers say cannabis is sometimes part of holiday gatherings with family

Stigma has decreased, but it is still a concern

But that doesn’t mean all consumers are willing to discuss their consumption habits. Over half of marijuana users won’t disclose their use on the first few dates.

Cannabis market size & revenue opportunity

The US cannabis industry is expected to reach $47 billion in revenue in 2026

According to projections from Statista, total revenue from cannabis is expected to reach $47 billion in 2026. With an estimated annual growth rate of 3.36%, the market volume is projected to reach $55.43 billion by 2030.

Cannabis sales declined for the first time ever

According to a December 2025 forecast update from Whitney Economics, U.S. regulated cannabis revenues for 2025 were projected to be between $29.1 billion and $29.6 billion. This represents the first-ever annual year-over-year revenue decline for the U.S. legal cannabis market, falling below the $30.1 billion level achieved in 2024.

Whitney was originally forecasting a 14% increase from 2024 to 2025. They later decreased the projections, citing price compression, tax challenges, and the influence of substitute products.

Though not all outlets report consistent numbers.

BDSA reported 2025 sales of U.S. adult-use cannabis were $23.9 billion, and U.S. medical cannabis sales were $7.6 billion, totaling $31.5 billion.

Cannabis prices are still compressing

Competitive pricing trends among cannabis brands and retailers have led to significant price declines since 2021.

Leaflink found that aggregate platform flower prices hit ~$1,020/lb through the end of May 2025, down ~$100/lb since May 2024, driven by outdoor flower harvests causing oversupply in several of the core states (i.e., Michigan and Arizona). The gradual decline in the national aggregated flower prices will continue to challenge sellers as margins are compressed.

Compressing prices impacts cannabis brands and retailers, squeezing profit margins and forcing dispensaries to fight to combat the effects of marijuana price compression.

Cannabis will add approximately $149.1 billion to the economy in 2026

According to the MJBizFactbook, for every $10 consumers and patients spend at dispensaries, an additional $18 will be injected into the economy.

Much of this economic stimulation happens at the local level, contributing to growth in the same neighborhoods where the cannabis products are being sold.

Nearly $25 billion in combined cannabis tax revenue has been collected

Cannabis is often compared to the alcohol industry, even though the two are inherently different. It appears cannabis isn’t just better for avoiding hangovers, it’s also earning states more money in tax revenue.

Since 2014, nearly $25 billion in adult-use tax revenue has been collected. In 2024 alone, legalization states collectively generated more than $4.4 billion in cannabis tax revenue from adult-use sales, which is the most revenue generated by cannabis sales in a single year.

Statista reported that the alcohol industry generated $8.93 billion in 2024.

Cannabis tax revenue impacts communities

Cannabis tax revenues are increasingly being earmarked for education, community reinvestment, and local economic development. Many states and cities also dedicate a fixed share of cannabis tax dollars to social equity programs and grants in communities harmed by past enforcement.

New York, in particular, directs 40% of cannabis tax revenue into a Community Grants Reinvestment Fund for education, mental health, substance use treatment, and economic development grants in communities most impacted by prohibition. In 2025, New York's Cannabis Advisory Board awarded an initial $5 million to 50 non-profits.

In 2025, California officials awarded more than $52 million through CalCRG, an increase of about $11 million from the prior year.

Cannabis justice reform still faces barriers

While many states have begun to prioritize social equity, the outcomes have not been what we were hoping for overall. Around two-thirds of adult-use states have created some type of social equity program, but a review by the Minority Cannabis Business Association found that the number and effectiveness of state social equity programs fall short of stated commitments; common barriers include complex applications, capital requirements, and limited access to banking and investors.

Nationally, more than 80% of cannabis business owners remain White, despite the proliferation of equity programs aimed at diversifying industry participation.

Regarding arrests, in 2024, state and local law enforcement made over 200,000 marijuana-related arrests. Ninety-two percent of those arrests were for low-level marijuana possession — not cultivation, trafficking, or sales. Half of the total arrests were made in Georgia, Louisiana, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, and Wisconsin. On the federal level, agents seized more than five million marijuana plants in 2024 and made nearly 6,000 marijuana-related arrests, according to annual data compiled by the Drug Enforcement Administration.

Top cannabis brands of 2025

Headset data shows that the top cannabis brands for 2025 are STIIIZY, RYTHM, Jeeter, and Wyld. STIIIZY was a leader in concentrate sales. WYLD was the top-selling brand of edibles. RYTHM was the #1 flower brand, and Jeeter is a top-selling pre-roll.

Cannabis marketing spend & advertising gap

Compared to traditional industries, cannabis brands are not putting capital toward marketing:

• Cannabis brands typically spend 2–5% of revenue on marketing
  
• Traditional industries average 9–12%

Further, cannabis brands spend a staggering 75% less on marketing than traditional retail, and 80% less than CPG (as a % of revenue).

The overall result: the revenue-to-ad-spend gap is widening, not closing.

Marketing channel usage

The Cannabis Media Council's responsible advertising report also found that the most-used marketing channels for cannabis brands are:

• Website: 79.8%
• Sales promotions: 73.7%
• Events: 68.2%
• Advertising: 67.7%

Advertising formats used:

• Internet/digital: 61.7%
• Print: 36.4%
• Billboards: 33.8%
• Radio: 15.7%
• TV/Streaming: 11.6%

Though this is also lagging behind traditional industries. Only 16% of cannabis marketing budgets are allocated to retail media, compared to 39% in CPG.

Read next: Full Spectrum: Guidelines for Responsible Advertising (Cannabis Media Council)

Cannabis market trends

Millennials are still the top consumers, and they like pre-rolls

Millennials are leading the charge in consumption of pre-rolls, accounting for 45% of the $3 billion market, according to a recent study.

In September 2024, spending on pre-rolls by generation was:

• Millennials (born 1981-96): $103.9 million for 44.6% of total spending.

• Generation X (1965-80): $56.7 million, or 24.3% of total.

• Generation Z (1997-2012): $43.2 million, or 18.5% of total.

• Baby boomers (1946-64): $29.2 million, or 12.5% of total.

While daily consumption has either stagnated or declined across most age groups, millennials buck that trend — daily use among this group has stayed strong, according to CivicScience.

25% of all cannabis sales now happen online

According to Headset, nearly one-quarter of all dispensary sales now happen online, including delivery and curbside pickup. This is a clear sign that a strong web presence and integrated online menus are vital for dispensaries. And it’s highly variable across states.

But this isn’t just about ecommerce. Seven in ten cannabis consumers find digital tools like online menus, kiosks, and in-store screens essential to the shopping experience.

• 75% of cannabis consumers want the ability to reorder with one click.

• 72% want to pre-order online.

• 67% say delivery options are essential.

• 76% say a budtender’s expertise and advice directly influence what they buy.

And since data consistently shows that the average online or delivery order is significantly higher than a walk-in purchase, this is meaningful for the dispensary's bottom line.

AI impacts consumer preferences and loyalty

A 2025 survey found that AI-powered digital conveniences paired with expert budtender recommendations lead to more profitable and loyal customer experiences. In particular, 86% of cannabis customers said they would be loyal to a specific dispensary if it offered personalized recommendations.

Flowhub data shows cannabis loyalty members spend 3.5x more each year than one-time buyers, so earning repeat business is vital. Further, loyalty members visit 40% more often and are 5× more likely to try new products than non-loyal customers.

Read Next: Cannabis Loyalty: The Closest Thing to Dispensary Magic

The opportunity for AI innovation within the industry is vast, and we’re seeing technology companies crop up with advancements in extraction, cultivation, and logistics. This may be a huge area of growth in 2026.

High THC is no longer the goal

Another trend in cannabis usage is the shift toward functional potency. BDSA found that 42% of edible consumers prefer a dosage of 10 mg or less. And the most popular dosage is between 2.5 and 5 mg.

It may be a wider trend, or just that people who consume edibles are more likely to consider dosage.

Cannabis mergers and acquisitions focus on interstate deals

While 2024 wasn’t the strongest year for cannabis M&A activity, 2025 was predicted to be the year of interstate expansion.

Though the overall M&A focus hasn’t changed: larger operators with access to capital will find room to expand their portfolio through distressed or overleveraged assets, even across state lines, positioning large and small operators with opportunities to thrive.

Cannabis employment and job creation

The cannabis industry supports 425,002 jobs

The 2025 Vangst Jobs Report found that there are 425,002 full-time equivalent jobs supported by legal cannabis. That number is down a modest 3.4% from 440,445 jobs in 2024. Vangst says that “despite revenue growth, the industry took a more structured approach to hiring based on operational discipline.”

This dip in employment is a recalibration and right-sizing due to a lack of profitability caused by:

• Lack of profitability due to regulatory and federal tax burdens.

• Oversaturation and related price compression and lower margins.

• High state and local taxes are causing consumers to look for alternative products, including in the non-regulated market.

Further, the Cannabiz Team projects that the cannabis industry will have nearly 800,000 jobs by 2029.

Key states show job growth

While the overall job market is down, there is variability across states. Not surprisingly, the newer markets are still seeing significant growth, including New York, New Jersey, Ohio, West Virginia, Mississippi, and Vermont. New York, in particular, had a 209% increase in jobs in 2025.

More mature markets are recalibrating, including double-digit decreases in Arizona, Illinois, Maine, Maryland, and Oklahoma. California, Colorado, Michigan, Washington, and Oregon saw only marginal decreases.

Cannabis business salaries are decreasing

Jobs are down, job growth is done, and so are salaries. The Cannabiz Team's annual survey guide found that salaries are down between 4-7% across various job categories.

Budtenders in particular, an already underpaid role, saw a decrease of 4.69%, from a median of $42K in 2024, to $36,600 in 2025.

Cannabis legal updates

Cannabis rescheduling is in progress, which would remove 280E implications

On December 18, 2025, President Trump issued an executive order, “Increasing Medical Marijuana and Cannabidiol Research,” instructing the Attorney General to expedite moving marijuana from Schedule I to Schedule III.

The most notable impact of this change would be 280E. Moving to Schedule III would allow state-legal cannabis businesses to claim standard federal tax deductions, as the restrictive Internal Revenue Code Section 280E would no longer apply.

This reclassification is expected to save a typical dispensary $268K annually. Data from Headset shows that removing 280E unlocks approximately $1.6B to $2.2B per year in incremental after- tax cash flow, which will lead to stabilization and reinvestment.

The 2025 election was quiet for cannabis

Minnesota streamlined its industry by moving medical program oversight to the Office of Cannabis Management (OCM) and implementing new licensing for hemp-derived edible wholesalers.

Texas significantly modernized its Compassionate Use Program by replacing its strict 1% THC cap with a more flexible 10mg per serving limit.

Ohio tightened market controls by capping retail license numbers and banning intoxicating hemp products.

Despite these advancements, adult-use legalization efforts stalled in states like Wisconsin, Pennsylvania, and New Hampshire due to ongoing legislative disagreements over tax structures and state-run versus private retail models.

Some states and countries are walking away from legalization

After becoming the first Asian nation to decriminalize in 2022, Thailand effectively banned recreational cannabis in June 2025. New emergency regulations reclassified cannabis flowers as a "controlled herb," now requiring a Thai-issued medical prescription for any purchase or use.

Stateside, the Massachusetts 2026 ballot campaign attempting to wipe out the state’s adult-use cannabis market just got one step closer to putting a prohibition question before voters next November. The adult-use legalization initiative was passed with a 54% majority in the 2016 election. Similar activities are underway in Maine.

International cannabis legalization in the Czech Republic and Ukraine

In late 2025, the Czech Republic approved a national measure allowing adults over 21 to legally grow up to three plants and possess up to 100 grams of dried cannabis for personal use, with the law slated to take effect January 1, 2026.

Ukraine’s medical marijuana program, legalized in response to war-related PTSD and chronic pain, began its official rollout in early 2025.

We hope that you've found this collection of cannabis industry statistics to be informative and useful. If you have any other research or statistics that you think would be valuable to include in this resource, please let us know by emailing us at marketingteam@flowhub.com. Your feedback and suggestions will help us continue to improve and expand this resource for the benefit of the cannabis industry. Thank you for your support!