Arizona Q1 Cannabis Sales Down 13% from Last Year

Arizona cannabis retailers sold $261 million worth of adult-use cannabis products during the first quarter of 2025, down more than $27 million — or about 9.6% — from last year, the Arizona Mirror reports.

The first quarter results continue a multi-year downward trend for the Arizona cannabis industry after sales slumped last year from about $1.4 billion in combined medical and adult-use cannabis sales in 2022 and 2023, to just $1.1 billion in combined sales in 2024.

According to the report, the declining sales this year were marked by a particularly dismal March with Arizonans purchasing about $20 million less that month than they did in March 2024, the report said.

Meanwhile, medical cannabis sales in the state have also continued to fall this year, with Q1 sales reaching just $52 million, about $21 million or 28.3% less than last year.

Adult-use cannabis sales in Arizona are subject to a 16% excise tax on top of the state’s standard 5.6% sales tax, and local municipalities can get an additional 2% tax on top of that. Medical cannabis sales, however, are subject to just the state’s standard sales tax.

The Arizona adult-use cannabis industry launched in January 2021. At the time, it was the quickest state to launch a fully-fledged recreational marketplace after voters cast their approval for the reforms.