Washington Adult-Use Cannabis Sales Decline for Fifth Straight Year

Adult-use cannabis sales in Washington state have been falling for five years, according to Department of Revenue data reported by KHQ.

First-quarter sales in 2025 reached $277 million, which is nearly $100 million less than the market’s peak during the pandemic in 2021. Based on current trends, annual cannabis sales this year could be the state’s lowest since 2019 after five straight years of declining sales in Washington.

Regulators attribute the decline to oversupply issues, which drive prices down and make it more difficult for licensees to turn a profit.

Officials with the state Liquor and Cannabis Board (LCB) recently announced the largest expansion of cannabis dispensaries since the market’s launch over a decade ago, offering up to 52 new retail social equity licenses.

Meanwhile, a report from the state’s legislative auditor found that “Washington businesses produced two to three times more cannabis than retailers sold in 2023,” and that “inaccurate and incomplete data” had hampered regulators’ capacity for “data-driven regulation.”

The auditcalls on the LCB to submit a plan to lawmakers by December 31, 2025, containing strategies to improve data accuracy.