US marijuana business licensing stable in early 2025

The U.S.marijuana licensing market remained stable in early 2025, with the total number of active licenses growing less than 1%.

There were 38,509 active business licenses in regulated medical and recreational marijuana markets during the first quarter of 2025, according to a recent report by CRB Monitor, a cannabis intelligence firm that tracks and monitors permits. ADVERTISEMENT Cannabis licensing growth plateaued in the third quarter of 2024 after two years of contraction, where total licenses declined 13%.

Meanwhile, approved/pending and pre-licensing activities declined in the first quarter of 2025, signaling a slowing of businesses entering the market.Approved/pending licenses fell 5% for the quarter to 5,095, marking the third consecutive quarterly decline in new license approvals.

Applications set for approval slid 12% to 5,493, extending a decline that began in the third quarter of 2024 as a flood of applications in New York moved slowly through the review process.Recent license growth has been driven largely by fast-growing adult-use markets in Massachusetts, New Jersey and, despite the delays, New York.

“After a period of aggressive expansion and painful corrections, we’re seeing the market settle into equilibrium,” said Steven Kemmerling, CEO of Nashville, Tennessee-based CRB Monitor.“But stagnation isn’t growth – this could mean tougher competition for existing operators.

“Most markets are now focused on profitability, not expansion.The era of easy money is over.” ADVERTISEMENT Select state highlights California While slight, the number of active licenses in California rose for the first time in more than three years.

State licenses grew 1% from the end of 2024, closing out the first quarter of this year with 8,530 operators.That’s a welcome respite as California lost 30% of its active licensees in the past two years.

Michigan Michi...