The U.S. hashish business is in a dynamic and quickly evolving state, characterised by vital progress, ongoing state-level legalization and protracted federal challenges.
The U.S. hashish market was estimated at $38.50 billion in 2024 and is projected to achieve round $45.35 billion in 2025, in keeping with the American Psychological Affiliation. It’s anticipated to proceed its strong progress, doubtlessly reaching $87.0 billion by 2035.
An article by BioSpace credit this unprecedented progress to rising acceptance for each medical and leisure use, together with an increase in analysis actions exploring hashish’s medicinal properties.
As these foundational shifts proceed to reshape the business’s trajectory, wholesale hashish commerce platform LeafLink has printed the Spring Version of its State of the U.S. Hashish Business report, showcasing simply how quickly the business is rising.
Information printed within the report is sourced from state-level gross sales experiences by Could 2025, LeafLink inner knowledge and in depth evaluation of over 332,000 on-platform SKUs and a couple of million annual orders.
Key Progress Drivers for Hashish
Based on the report, LeafLink initiatives U.S. hashish gross sales will attain $50–55 billion, with a compound annual progress charge of ~9%, by 2030, with enormous progress potential in New York and Ohio.
“New York’s progress is basically because of retail license issuance by regulators,” says Ben Burstein, LeafLink market analyst and report writer. “The state is opening up very strongly. Initially of 2024, New York was making about 20 million in gross sales. Initially of this yr, the state was making about 120 million in gross sales.”
Ohio’s progress can be robust due to conversions from the medical market to the adult-use market, in keeping with Burstein.
“One other key space of progress is retailer licensing,” he says. “Regulators are giving every of the large-scale cultivators three further retailer licenses. Present complete retail shops are additionally being given an extra license. So, in complete, there are over 300 shops within the state.”
Stock Administration
Whereas there are some influential progress areas within the hashish business, there are additionally some ache factors. Considered one of them being stock administration.
Based on the report, stock stays the hashish business’s most pressing operational problem. Manufacturers and retailers lose an estimated $10 billion yearly because of poor assortment administration, cut up between two main drivers:
- Overstocking. Retailers are carrying a mean of 100 days’ price of stock. That’s over thrice the 30-day goal seen in adjoining industries like comfort or tobacco.
- Inventory-outs. Being out of a buyer’s most well-liked model drives churn and leads to helpful misplaced prospects. Primarily based on case research with LeafLink companions, stock-outs are answerable for ~6% in misplaced gross sales, equating to roughly $2B yearly in direct gross sales.
To assist enhance these stock inefficiencies, operators are adopting real-time sell-through knowledge, automated reordering and knowledge pushed assortment methods, in keeping with the report. Using this expertise helps companies see stronger margins, sooner money conversion and extra constant buyer loyalty.
Market Stability and Stability
The U.S. hashish business continues to develop, with each retail and wholesale gross sales reaching new heights and state-level insurance policies shaping regional dynamics.
Arizona, Massachusetts and Pennsylvania, for instance, have seen modest worth restoration, in keeping with the report. This restoration has helped to stabilize the nationwide outlook over extra mature markets.
“The explanation these markets are seeing enhancements in pricing is as a result of cultivation was down over the past six months,” Burstein explains. “Their harvests this yr are barely smaller than what we have been anticipating primarily based on final yr.”
Among the operators are slicing down on how a lot they’re rising as a result of their wholesale pricing didn’t make sense to have a large-scale manufacturing, in keeping with Burstein. This disadvantage in provide is leading to worth enhancements.
“It’s nonetheless not good or balanced, and we nonetheless see an excessive amount of provide within the markets, nevertheless it’s higher than the place we was once,” Burstein notes.
Prime-Promoting Hashish Merchandise
The LeafLink report additionally showcased the top-selling hashish merchandise. Flower stays the most well-liked, making up roughly 40% of retail gross sales and 39% of wholesale gross sales.
Following flower, the most well-liked classes are cartridges (~21% of wholesale gross sales), edibles (14%), pre-rolls (14%) and concentrates (12%).
Aggregated platform flower costs hit ~$1,020/lb by the top of Could, in keeping with the report, down ~$100/lb since final summer time. That is primarily pushed by out of doors flower harvests inflicting oversupply in a number of states, as Burstein talked about earlier.
Pricing will seemingly proceed to say no over the following six months as bulk flower is harvested and processed into packaged product items, in keeping with the report, though declines in cultivation capability in California, Oregon and Colorado ought to proceed to enhance pricing in mature markets.
Regardless of some business challenges, Burstein predicts the market will proceed to develop.
“By 2030, we count on U.S. hashish to be a $50-55 billion market,” he says. “We forecast most incremental gross sales within the coming years to be pushed by new license issuance in key states equivalent to New York, New Jersey, Illinois, Ohio and Minnesota. Lengthy-term, we anticipate progress to return from giant inhabitants facilities but to legalize and approve strong market constructions.”
