Declined Sales and Lost Jobs on Arizona Cannabis Market
Even though it’s one of the most attractive destinations for holidaymaking among cannabis connoisseurs, sales of pot products in Arizona are falling as the state recreational market stalls. Sales dropped significantly in the second quarter of 2025, after a previous slide in the first quarter. Overall, the first half of 2025 has been a big disappointment for many in Arizona’s cannabis industry.
Arizona cannabis consumers spent $43 million less in purchases, with sales sinking by 7.6% compared to 2024. It’s the biggest year-over-year decrease since the legalization of marijuana in Arizona in 2020.
Decline Was Led by a Sharp Slid in Adult-Use Sales in June
Combined sales of recreational and medicinal marijuana in Arizona grossed around $298 million in the second quarter of 2025. It’s a 13.7% drop compared to the same three-month period last year. That’s also $30 million less than in the first quarter, where figures show $328 were made in sales, which is still 9.1% lower than the prior year, Arizona Mirror reported.
Figures point out that June was the weakest month so far. Recreational use products brought in only $71 million, or almost $14 million less in marijuana products sold compared to 2024, according to reports.
Arizona’s cannabis industry has been sinking for several years now. Last year, 2024, was the first in three years where sales did not surpass $1.4 billion. With a total of $1.3 billion generated from combined medical and recreational retail, sales fell 10% from 2023, and nearly 15% from 2022. This year, 2025, things may go even lower.
Dramatic Decline of Arizona’s Medical Marijuana Market
The situation is most serious with the medical marijuana sector. Medical purchases dropped over 26% in 2025, losing at least $17 million from the profits seen in 2024. The decline of Arizona’s medical market accelerated with the launch of adult-use sales four years ago. At the time, forty-eight percent of all purchases were coming from medical cannabis cardholders. The state medical program nowadays has fewer than 100,000 enrolled patients, making less than one-third of the market.
The recreational market has swiftly taken hold at the expense of the medical segment. In 2022, adult use purchases neared 66% of all sales. In 2023, they made 73% of all market sales, and topped to 81% in 2024.
Over 10,000 Cannabis Jobs Have Been Lost Since 2024
The stagnation of Arizona’s cannabis market is also felt through loss of jobs. More than half of the sector’s jobs were scrapped throughout 2024, the largest drop in cannabis employment rate nationwide, according to Vangst’s job report. The number of cannabis jobs dropped from over 20,000 positions in March 2024 to just 10,000 in January of this year.
As of August 2025, the average cannabis item price in Arizona has seen a slight drop from July 2025, moving from $17.24 to $17.18.
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Stephen Andrews
