U.S. Active Cannabis Business Licenses Decline 13% Over Two Years

Key Takeaway

The number of active cannabis business licenses in the US declined to 37,555 in the most recent quarter, down about 1 percent quarter-over-quarter and extending a downturn that began in late 2022. Over the past two years, total active cannabis licenses have dropped by roughly 13 percent nationally. The decline is concentrated in mature markets like Oregon, Oklahoma, and California where oversupply and price compression have forced small operators to surrender licenses. Newer markets including Missouri, New York, and Maryland are still adding licenses but at insufficient volume to offset losses elsewhere. For investors and ancillary service providers, the shrinking license count signals that the cannabis industry is consolidating rather than growing in raw operator count.