Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 11.0 % over the past five years, to reach an estimated $16.4bn in 2025.
Trends and Insights
With the majority of states permitting medical marijuana, sales boom
- In recent years, state governments have become increasingly favorable toward medical marijuana, with an estimated 38 states allowing medical marijuana dispensaries as of 2023 (latest available data). Concurrently, the public's stance on using marijuana to treat medical conditions has become more favorable, enabling dispensaries to enjoy substantial revenue growth.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Federal policy and banking reform will reshape dispensary economics and industry structure
- Incremental federal reforms, such as expanded banking access or targeted Section 280E tax relief, are highly likely over the next five years and will immediately unlock easier access to mainstream credit, lower security expenses and streamline digital payment systems—dramatically reducing operational friction and capital costs for dispensaries of all sizes.
Biggest companies in the Medical Marijuana Dispensaries in the US
| Company | Market Share (%)
2025 | Revenue
2025 | Profit
2025 | Profit Margin (%)
2025 |
|---|
There are no companies that hold a market share exceeding 5% in the Medical Marijuana Dispensaries in the US industry.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Flower products, Vaporizer products and Edible and ingestible products. Flower products is the largest segment of the Medical Marijuana Dispensaries in the US.
Trends and Insights
Evolving patient expectations reshape the role of flower in dispensaries
- Flower’s share of medical dispensary revenue, at 45.3% in 2025, reflects its persistent popularity for acute relief and patient loyalty, yet also a shift as patients migrate to tinctures, capsules and other precision formats. Dispensaries are increasingly positioning flower as a gateway SKU, driving foot traffic and onboarding new patients before cross-selling premium, recurring therapies.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Companies in this industry distribute marijuana to individuals with a prescription.
What's included in this industry?
Products and services covered in the Medical Marijuana Dispensaries industry in the United States include Retail flower products, Retail vaporizer cartridges, Retail edible and ingestible products, Retail medical marijuana concentrates and Retail medical marijuana accessories.Companies
Companies covered in the Medical Marijuana Dispensaries industry in the United States include .Purchase this report to view all major companies in this industry.
Related Terms
Related terms covered in the Medical Marijuana Dispensaries industry in the United States include dispensary, cannabis, edibles, inhalants, topicals and tetrahydrocannabinol (thc).Industry Code
NAICS 453998 - Medical Marijuana Dispensaries in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Medical marijuana dispensaries thrive as legalization expands. Widespread acceptance and easier access are driving strong industry growth, with hybrid dispensaries and innova...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Patient preferences are driving dispensaries toward more precise and alternative formats. Flower remains a gateway product, but tinctures, vapes and edibles are winning long-...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Regional factors shape dispensary growth and operations. The Southwest and West thrive on early legalization and retiree demand, while tourism, logistics, and complex regulat...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each state in 2025
- Number and share of revenue each state accounts for in 2025
- Number and share of wages each state accounts for in 2025
- Number and share of employees in each state in 2025
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Recreational marijuana stores pose a significant threat to medical dispensaries. Many consumers prefer buying without a medical license, reducing the growth rate of customer ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
There are no companies that hold a market share exceeding 5% in the Medical Marijuana Dispensaries in the US industry.
Analyst insights
Marijuana's classification as a controlled substance prevents any single enterprise from capturing any significant share of the market. Due to licenscing limitations, the maj...
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
An aging population is advantageous to medical marijuana dispensaries as it represents a signal toward increased incidents of chronic pain and illness that marijuana can treat...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit is tightening for dispensaries. Rising labor, rent and regulatory costs are outpacing efficiencies, leaving operators under pressure to cut costs and innovate just to ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Industry Multiples (2018-2023)
- Industry Tax Structure (2018-2023)
- Income Statement (2018-2023)
- Balance Sheet (2018-2023)
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Medical Marijuana Dispensaries industry in the United States in 2025?
The market size of the Medical Marijuana Dispensaries industry in the United States is $16.4bn in 2025.
How many businesses are there in the Medical Marijuana Dispensaries industry in the United States in 2025?
There are 8,056 businesses in the Medical Marijuana Dispensaries industry in the United States, which has grown at a CAGR of 22.6 % between 2020 and 2025.
How may import tariffs affect the Medical Marijuana Dispensaries industry in the United States?
The Medical Marijuana Dispensaries industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Medical Marijuana Dispensaries industry in the United States?
The Medical Marijuana Dispensaries industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Medical Marijuana Dispensaries industry in the United States grown or declined over the past 5 years?
The market size of the Medical Marijuana Dispensaries industry in the United States has been growing at a CAGR of 11.0 % between 2020 and 2025.
What is the forecast growth of the Medical Marijuana Dispensaries industry in the United States over the next 5 years?
Over the next five years, the Medical Marijuana Dispensaries industry in the United States is expected to grow.
What does the Medical Marijuana Dispensaries industry in the United States include?
Retail flower products and Retail vaporizer cartridges are part of the Medical Marijuana Dispensaries industry in the United States.
How competitive is the Medical Marijuana Dispensaries industry in the United States?
The level of competition is high and increasing in the Medical Marijuana Dispensaries industry in the United States.
Methodology
How are IBISWorld reports created?
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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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