Combined medical and adult-use cannabis sales in Arizona totaled $1.1 billion last year – a decline from the nearly $1.3 billion in sales in both 2022 and 2023, according to state Department of Health Services data outlined by KGUN 9. The average price of cannabis products in the state also fell from $19.92 in January 2024 to $18.37 in January 2025, according to data from cannabis intelligence firm Headset.
Last year, the state collected $245.3 million from cannabis taxes, including $151.2 million from excise taxes – applied at 16% in the state – and $75.7 million from adult-use sales taxes.
Michael Shew, Operations Director at Tucson dispensary Earth’s Healing told KGUN that the drop in revenue is due to changing consumer behavior, increased market competition, and the rise of unregulated sales.
Headset notes that the price drop “reflects a competitive market environment where price adjustments are likely in response to consumer demand and market saturation.” According to Headset data, total cannabis sales in Arizona last month reached about $86.85 million, with a total of 4,727,509 units sold, which the company said “indicates a robust market size with significant consumer engagement.”
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