What was considered taboo just a decade ago is now a significant driver of the U.S. economy. The legalization of weed for recreational and medical use is spreading across states, and cannabis has turned into a multi-billion-dollar industry. From busy dispensaries in California to unique edibles in New York, Americans are spending more on weed than ever. But how much are Americans spending each year, and what impact does this have on the economy?
It’s not enough to just examine the numbers involved in how much cannabis people are using. The statistics tell a story of a shift in attitudes, new emerging industries, and the huge economic impact of an substance that is no longer so secret. In this article, we will dig down into the specifics, analyze expenditures, and try to understand what is fueling America’s appetite for cannabis.
Overview of Annual Weed Spending Based on Surveys
So let’s start with a recent survey conducted by the cannabis telehealth platform NuggMD, it has stated that a majority of Americans who use weed are spending more on cannabis now compared to last year, and many expect to increase their spending over the next year.
In survey questions designed to measure the relative strength of the weed economy, 61 percent of the 273 respondents said they spent either “much more” or “more” than they had a year earlier on cannabis. Only 22 percent reported spending less and 16 percent reported spending no more or less than a year earlier. Looking ahead, according to that same study 45 percent of 411 respondents expect to spend “a bit more” (27 percent) or “much more” (18 percent) in the coming year, indicating continued growth in the sector.
According to NuggMD head of communications Andrew Graham, the increased spending reflects not only rising weed prices but also growing consumer demand, mostly as cannabis acceptance by the mainstream increases. He further added that cannabis may not be as affected by economic slowdowns as any other industry is because the demand for weed is highly resilient. The survey further showed that most consumers buy their cannabis from licensed retailers, which supports the argument that regulated markets can reduce illicit cannabis sales.
Moreover, a recent survey conducted separately by NuggMD revealed that nearly one-third of weed consumers would go back to the illegal market if cannabis were only made available as an FDA-approved prescription drug.
Comparison of Legal vs. Illegal Weed Sales
As most cannabis enthusiasts know, both recreational and medicinal cannabis has been growing as a market, taking business away from illicit sales. As of January 2025, cannabis has been legalized for recreational use in 24 states and D.C.. For medicinal purposes, that numbers increases to 38 states and D.C.. With constant changes in the laws leading to better access to safe, quality cannabis, spending in the legal market continues to increase.
Even with the increased nationwide acceptance, the black market continues to exist, as marijuana remains illegal at the federal level and is only legally accessible in states where it has been legalized.
However, there is a glimmer of hope for those states that have banned marijuana. There’s now a federally legal alternative that provides both recreational and medicinal benefits, without the risk of jail time. Hemp-derived cannabis has also been on the rise over the last four years.
Hemp-derived products, fueled by the 2018 Farm Bill, are transforming the cannabis industry with their legal status, low THC content, and wellness appeal. Consumer demand for CBD, Delta-8 THC, and Delta-10 THC is driving rapid market growth, supported by regulatory loopholes and expanding product availability. States like California, Texas, and Colorado lead this revolution, offering innovative opportunities in skincare, food, and wellness, while balancing evolving regulations and consumer preferences.
Growth Trends in Cannabis Spending Over the Past Decade
The cannabis industry has expanded exponentially over the last ten years. Recreational cannabis became legal in parts of the U.S. starting in 2012, with Colorado and Washington leading the way. By 2022, the U.S. recreational cannabis market was worth $35.76 billion. More weed users have surfaced; between 2013 and 2024, the percentage of Americans who report using weed at least occasionally increased from 7% to 15%.
The rate is even higher among younger adults. In 2024, 26% of adults aged 18-34 reported using weed. Public sentiment has flipped, with 88% of Americans now believing in legalization of some sort. That adds to a market size that continues to increase, along with regulations such as New York’s entry in 2023.
| TOP 5 STATES | PERCENTAGE OF GROWTH PER CAPITA (2023 to 2024) |
| Nevada | 415.57% |
| Alaska | 358.39% |
| Maine | 320.93% |
| Colorado | 312.96% |
| New Mexico | 272.61% |
This statistic shows legal cannabis spending per capita in the United States in 2024, by state. By 2024, legal cannabis spending per capita in Nevada is expected to reach 415.57 U.S. dollars in the United States.
Factors Driving Weed Spending
Several factors have influenced weed spending in the United States, especially at the end of 2024, showing how the industry is changing and adapting to shifting public opinion and legal changes.
State Legalization Trends: The most significant driver for the market has been the push for weed legalization across states. By the end of 2024, 24 states and Washington, D.C. have legalized weed for adult use while 38 states have approved it for medical use. Increasingly, acceptance of cannabis creates a space for the business in different parts of the country. Florida’s plan to allow the sales of recreational weed at already operational medical dispensaries and additional licensed retailers is an important step forward for increased access to cannabis. The proposal needs a vote of 60% or more to pass and, if approved, could dramatically increase weed sales in the state in the months following approval. Similar efforts are occurring in other states, including North and South Dakota, which will be urged to vote on legalization for the third time.
Public Support for Legalization: Support for weed legalization has reached an all-time high. Recently, a Pew Research Center survey found that 88% of Americans would like to see weed legalized for either medical or recreational use, and 57% want full legalization. An additional 2023-2024 Gallup poll presented some surprising findings, suggesting that a little over 15% of Americans smoke weed as marijuana use becomes ever more normalized. This trend in public opinion is very likely to continue fueling spending as increasingly more consumers feel comfortable purchasing weed products.
Growth of the Market: With legalization comes economic growth. In 2024, the cannabis industry was on its way to reach $40 billion in sales, which is a number that surpasses previous years because more and more consumers turn to weed for both medicinal and recreational use. Increased demand has also drawn investment from private equity and venture capital, further propelling the market forward. New York, for example, has seen its number of legal cannabis shops multiply; projections are that 625 dispensaries will open by 2025.
Regulatory Developments and the Path Forward: On the federal level, a major turning point is the U.S. Drug Enforcement Administration’s reclassification of cannabis from Schedule I to Schedule III. Federal legalization is by no means in sight, but it at least makes matters a little lighter on the regulatory hurdles, thus providing businesses with a more stable operating framework. With some hurdles still in place, such as through state regulation and self-management of synthetic weed products, it is a glimpse of what is yet to come for the weed industry.
As we look forward, we see that the drivers of weed spending in the United States are tied up into a mix of legal trends, public opinion, and market growth. With public support stronger than ever and more states ready to legalize cannabis, 2025 is shaping up to be another year of change and growth for the industry.
Case studies: Colorado, California, and other key states.
If we talk about different states separately, then that will make it much easier for us to understand that how each state of US has performed in terms of cannabis or weed sales, be it medical or recreational.
The United States cannabis market has ended 2024 with trends in its markets largely variable across the different states as some were growing, while others had a pretty tough time.
California still held sway in the world of cannabis sales, with estimations of that market being over $4.7 billion. A few reasons may be attributed to this; perpetual war on illegal sales, understocked legal retail stores, and heavy taxes prompting a buyer to always look up for a criminal supplier who offers cut prices. These issues have been underlined in the California cannabis market, which is characterized by regulatory barriers and market saturation.
In Colorado, where marijuana is blazing its own trail, sales dropped 8% but are supposed to fall again, to $1.4 billion by 2024. That’s the same dip that has shown up elsewhere across the nation in Arizona and Washington, where the heady curve of growth in cannabis sales began to level off from its high when consumer demand started to slow and an unregulated black market began to fight back with even greater aggressiveness.
Coming from behind, Michigan follows with a probable 8.6% increase in the marijuana market to almost $3.32 billion at the end of 2024. Much of this can be attributed to new dispensaries popping up left and right, thereby becoming more accessible for customers, coupled with a little lower prices, which helped augment its market worth. This shows that even in a mature industry, there is still room for growth as long as it expands just the right way. Sometimes, adjusting prices and market strategies can really make a difference too.
The cannabis scene in 2024 looks a bit up and down. One side is seeing California and Colorado being squeezed to the point where there are just too many choices and some tough regulations. But on the flip side, Michigan is really coming along with its relatively easy access to cheaper cannabis for all.
Here is a clear chart with the estimated total sales of each state.
2024 State Based Cannabis Markets
| State | Adult-Use Sales Launch | Monthly Sales Average | Estimated 2024 Total Sales | Year-over-Year Growth |
| California | Jan. 2018 | $393,734,760 | $4,724,817,118 | -3.4% |
| Michigan | Dec. 2019 | $276,605,915 | $3,319,270,984 | 8.6% |
| Florida | Medical | n/a | $2,148,400,000 | 6.1% |
| Illinois | Jan. 2020 | $166,332,255 | $1,995,987,065 | 1.8% |
| Massachusetts | Nov. 2018 | $149,652,242 | $1,795,826,907 | 0.2% |
| Pennsylvania | Medical | $139,495,493 | $1,673,945,914 | 9.4% |
| Missouri | Feb. 2023 | $120,111,250 | $1,441,335,000 | 7.7% |
| Colorado | Jan. 2014 | $117,255,475 | $1,407,065,694 | -8.0% |
| Arizona | Jan. 2021 | $111,295,925 | $1,335,551,095 | -7.5% |
| Washington | Jul. 2014 | $100,382,018 | $1,204,584,216 | -3.3% |
| Maryland | Jul. 2023 | $94,459,604 | $1,133,515,252 | 43.8% |
| Oregon | Oct. 2015 | $80,519,760 | $966,237,117 | 1.1% |
| New Jersey | Apr. 2022 | $79,898,628 | $958,783,536 | 19.8% |
| Nevada | Jul. 2017 | $71,758,124 | $861,097,492 | 4.4% |
| Total | n/a | n/a | $24,955,849,084 | 3.2% |
*Florida sales are an estimate from Brightfield Group. All other estimates are based on CBT research and analytics. +Nevada’s 2024 sales projection is for adult-use sales only. All other states are for adult-use and medical sales unless otherwise noted.
The market, which has experienced rapid expansion in recent years, is expected to reach approximately $45.35 billion by 2025, with a steady growth rate projected to continue through 2029, bringing the industry to $49.56 billion. This growth is primarily driven by evolving consumer behavior, shifting demographics, and expanding legal frameworks across various states. However, challenges remain, especially as the initial “gold rush” period of cannabis legalization begins to taper off.
Cannabis Consumption Patterns Across Age Demographics
One of the most significant trends in the cannabis market is the shift in consumption across age groups. In 2023, a significant 42% of adults aged 19 to 30 reported using cannabis in the past year, with 29% using it monthly and 10% daily. This age group has consistently shown the highest rates of cannabis consumption. Interestingly, women from 19-30 years older have reported having a higher rates of use in comparison to male counterparts, whereas the market being traditionally male had shifted. Past-year use reports were lower by older adults age 35-50, at only 29 percent, and, on average daily use, there were 8 percent.
This demographic shift is crucial for understanding the market’s future path. The trend will be from the current trendsetters: those in their 20s and early 30s, and these will still drive demand well into the future as they mature into long-term consumers and shape the types of products offered and the direction of marketing initiatives for years to come.
Challenges and Market Growth
In 2024, the cannabis industry is expected to face a few significant setbacks despite growth that was previously forecasted. The excitement seen during the early years of legalization is slowly beginning to fade away. As the competition grows and saturation in the market increases, companies find it harder to maintain their profitability. Several cannabis companies recorded heavy losses, and the AdvisorShares Pure US Cannabis ETF declined by as much as 48%, signaling the loss of confidence among investors.
Regulations and changes within the market are issues that the cannabis industry needs to contend with. Ongoing issues with high taxes, illegal markets, and unregulated products such as synthetic hemp continue to plague the industry. For instance, Missouri has begun to crack down on unregulated cannabis products, especially those appealing to children. Issues with regulation will slow the growth of the industry over the short run, but demand for legal cannabis products remains strong.
Looking Ahead: Steady Growth in the Long Term
It could be seen that the future seems bright despite some challenges within the cannabis industry. Experts in this field forecasted that in coming years, it will continuously rise at a steady growth pace. That’s through more legalization by states as well as individuals adopting its consumption. The cannabis market is expected to reach almost $50 billion by 2029. This growth would be driven through increasing consumer demand, especially coming from younger demographics, and continuing retail infrastructure developments in newly legalized states.
With more prevalence of cannabis in our culture, there will be more new brands coming in to give consumers a choice in products based on their needs. The range of products would include edibles, wellness items, and newer uses for cannabis. The industry will probably just continue to change. Retailers and brands that can deal with rules and adjust to what the customers want will probably be most likely to be successful in the future.
Final Thoughts: Trends in American Cannabis Spending
While 2024 was a readjustment year for the US cannabis market with some states dropping, the overall future of the industry is bright. Expanding legalization along with changing demographics and preferences among consumers will see steady growth in the cannabis market until 2025 and beyond. Keeping ahead of the curve and adjusting to regulatory hurdles, the cannabis industry is on a path to long-term success.
Legal Disclaimer:
By reading this information presented, you agree to release the author of any liability that comes from using this data. This post contains no legal advice. Claims about cannabinoids have not yet been approved by the FDA. Laws and regulations regarding cannabis are subject to change. Read the full legal disclaimer here.
References:
- https://www.pewresearch.org/politics/2024/03/26/most-americans-favor-legalizing-marijuana-for-medical-recreational-use/?utm
- https://news.gallup.com/poll/284135/percentage-americans-smoke-marijuana.aspx?utm
- https://www.reuters.com/legal/litigation/cannabis-2024-year-review-2024-11-13/?utm
- https://recovered.org/marijuana/marijuana-legalization-by-state?utm
- https://www.investopedia.com/articles/investing/111015/future-marijuana-industry-america.asp
- https://www.statista.com/outlook/hmo/cannabis/united-states
- https://www.marketwatch.com/story/cannabis-sector-limps-into-2025-because-the-gold-rush-is-over-fc829f70?utm
- https://www.nuggmd.com/blog/flash-poll-how-is-your-cannabis-spending-changing
