Arizona reached more than a billion dollars in cannabis sales in 2023 and 2024, respectively, with adult-use sales making up the bulk of each total. Although there was a 7.5% decrease in sales between 2023 and 2024, the state is expected to continue strong as the global market is expected to grow to $58 billion in sales by 2028, with 56% coming from the United States market.
The Grand Canyon State’s cannabis market is unique, with many Arizonans embracing access to regulated cannabis products. In 2022, just a year after adult-use sales began, its sales outpaced long-standing cannabis markets like Oregon and Washington.
Highs and Lows for Arizona Cannabis
When Arizona transitioned to adult use, lawmakers landed on a limited-license market, capping the number of dispensaries that could operate in the state. Today, the cap is about 160 dispensaries, or about 2.2 stores per 100,000 people.
Benzinga reports that the declining sales trend is related to the growing number of dispensaries operating in Arizona. Between June 2023 and June 2024, the state saw a 13.5% increase in dispensaries.
However, data from Cannabis Business Times highlights the difference between Arizona and neighboring New Mexico, which has approximately 1,000 licensed dispensaries all fighting to capitalize on the $600 million market in 2024. According to its reports, the average Arizona dispensary can bring in an average of roughly $8.3 million in 2024 cannabis sales, whereas the average New Mexico dispensary is looking at about $600,000 in 2024 cannabis sales. With this in mind, the Arizona market remains full of opportunities.
Key Players for 2025 and Beyond
Arizona is a significant contributor to the United States cannabis market and has produced some key players of its own through its unique landscape.
Sol Flower dispensaries, for example, is one of the largest single-state dispensary chains in the state. Our privately owned parent company, Copperstate Farms, utilizes the unique climate of Snowflake, Arizona, to grow cannabis under 40 acres of glass at an ideal altitude, creating a need for fewer external resources. Arizona also permits vertical seed-to-sale integration, which is an advantage for companies like Copperstate Farms and Sol Flower, as they can keep their quality high and prices affordable.
Aeriz is another key player in the Arizona market. The company grows sustainable cannabis through the use of aeroponics, keeping water use to a minimum and utilizing a closed-loop system to reuse materials and keep costs low without sacrificing quality.
The state also houses a number of key ancillary businesses supporting the cannabis industry. Most notable is the RAW brand of rolling papers and parent company, HBI International, headquartered in Phoenix.
As 2025 unfolds, we can expect to see the Arizona cannabis market grow despite saturation and other common growing pains for nascent markets.
Macey Wolfer is a journalist and content writer specializing in the growing cannabis industry, Macey Wolfer produces a variety of public relations content for Proven Media’s diverse client roster. Wolfer taps into the heart of clients’ characters to effectively share their narratives with their target audience. She previously served as the assistant editor for MJBI, where she stayed on top of the latest cannabis news and trends to write about several of the industry’s best for an international audience. Wolfer holds a B.A. in English with an emphasis on creative writing.
