Arizona’s Cannabis Industry Struggles As Q1 Sales Plummet 13% From 2024 Levels

After falling in 2024, marijuana sales in Arizona accelerated their slide in the first quarter of 2025, falling more than 13% over the prior year.

The decline was led by a sharp drop in recreational cannabis sales in March. Adults purchased just $82 million of marijuana products for the month, almost $20 million less than they did in 2024. Those sales reports are likely to be revised upward next month, but revisions typically only reflect minor adjustments.

For the first three months of the year, adult-use marijuana sales were $261 million — down more than $27 million, a 9.6% drop from last year. 

But that’s nothing compared to the foundering medical marijuana industry, which saw a 28.3% year-over-year decrease. The $52 million in sales for the quarter were almost $21 million less than in 2024.

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