U.S. Cannabis Licensing Declines in Q2 2025

OG Article By Andrew Long

September 23 2025

Overview

U.S. cannabis business licenses dropped 2% to 37,889 in Q2 2025, per CRB Monitor. The industry faces ongoing contraction.

Key Trends

• Licenses down 13% over two years.

• Approvals and pending permits fell 14% to 4,391.

• Applications dropped 4% to 5,261.

Market Insights

• New York leads with 4,700 pending applications.

• California lost 358 licenses, down 23% in two years.

• Oklahoma cut licenses 4% to 5,561.

• Michigan grew 3% to 4,269.

• Connecticut, Washington, D.C., and Ohio saw gains.

License Breakdown

• Cultivation: Down 2% to 16,343.

• Retail: Steady at 11,527.

• Manufacturing and distribution: Down 5% each.

• Social use clubs: Up 18% to 80.

Approvals Decline

• Cultivation approvals: Down 14% to 947.

• Retail approvals: Down 8% to 2,123.

• Delivery licenses: Halved to 207.

Canada Update

• Licenses stable at 5,806, up 1%.

• Retail grew 2% to 4,100.

• Wholesale distribution fell 44% to 39.

Expert View

“The market is shedding excess capacity,” says CRB Monitor CEO Steven Kemmerling. “This creates a sustainable foundation.”