Top Six States by Cannabis Sales Through October 2024
As of October 2024, the cannabis industry in the United States has continued to flourish, with several states reporting record-breaking sales. According to Headset and BDSA market data, the top six states leading in cannabis sales reflect a mix of mature and newer markets, each benefiting from expanding consumer bases and regulatory adjustments that have driven economic growth. Here’s a look at the six top-performing states, showcasing their total cannabis sales and the factors driving their market success.
1. California
Total Sales: $6.8 billion (projected for 2024)
California, the largest cannabis market in the U.S., remains at the top despite the competitive landscape. Since legalizing recreational cannabis in 2018, the state has experienced steady growth in sales. In 2024, California is projected to reach approximately $6.8 billion in sales, partly due to increased accessibility, a broad product variety, and robust tourism in cities like Los Angeles and San Francisco. The California Department of Tax and Fee Administration (CDTFA) also reported a significant increase in tax revenue from cannabis, totaling $2.1 billion for the fiscal year, demonstrating its economic impact on the state.
2. Colorado
Total Sales: $2.4 billion
As one of the pioneers of cannabis legalization, Colorado remains a leading state in cannabis sales. With over $2.4 billion in sales projected for 2024, Colorado’s mature market benefits from established infrastructure, experienced consumers, and innovative products. According to the Colorado Department of Revenue, tax revenue from cannabis sales continues to fund state programs, with a reported $500 million allocated for public education and healthcare since 2020. The strong culture of cannabis tourism, especially in Denver, has kept Colorado’s cannabis market thriving.
3. Illinois
Total Sales: $2.1 billion
Illinois, which legalized recreational cannabis in 2020, has quickly emerged as a top player in the industry. With $2.1 billion in sales anticipated by the end of 2024, Illinois benefits from a large population and proximity to states where cannabis remains illegal, which attracts out-of-state consumers. The Illinois Department of Financial and Professional Regulation notes that over 30% of sales come from non-residents. Tax revenue from cannabis sales has enabled Illinois to reinvest in communities through social equity programs, allocating over $150 million in 2024 alone.
4. Michigan
Total Sales: $2 billion
Michigan’s cannabis market has exploded since its legalization in 2018, with $2 billion in projected sales for 2024. The state’s sales success is fueled by its broad acceptance among residents and a consumer-friendly regulatory environment. According to the Michigan Marijuana Regulatory Agency, 25% of all cannabis revenue has been allocated to public health programs, law enforcement, and local governments, making cannabis a critical economic driver in Michigan.
5. New York
Total Sales: $1.8 billion
New York’s adult-use cannabis market, which only began in 2023, is projected to generate $1.8 billion in 2024, showcasing its potential. The state has seen rapid growth in consumer interest, driven by its dense population and a high volume of tourists in areas like New York City. The New York Office of Cannabis Management has focused on social equity licensing and prioritizing minority-owned businesses, adding a unique aspect to New York’s cannabis market while fostering local entrepreneurship.
6. Arizona
Total Sales: $1.6 billion
Rounding out the top six is Arizona, with $1.6 billion in expected sales by October 2024. Arizona’s legalization of recreational cannabis in 2021 led to significant market growth, with steady demand from both residents and tourists. The Arizona Department of Revenue reported $300 million in cannabis tax revenue, which has been directed toward public safety, health programs, and educational initiatives.
In Summary
The cannabis market in these six states demonstrates the rapid pace at which legalization is reshaping local economies and generating significant tax revenues. With consumer demand, tourism, and social equity programs fueling growth, these states are setting the standard for what a successful cannabis market can achieve. As legalization continues to spread, these states may serve as models for emerging markets nationwide.
