Ohio’s Cannabis Market Turns One: Underwhelming Start but Promising Potential

As Ohio reaches the one-year anniversary of adult-use cannabis sales, the industry is at a pivotal moment. Despite being the seventh most populous state in the country, Ohio’s cannabis market has been criticized for underperforming, with issues ranging from limited product offerings to overly strict regulations. Still, as the state addresses these growing pains, its cannabis framework has the potential to become a national model, if key barriers are removed and thoughtful progress continues.

Year One Review: High Hopes, Low Results Compared to Peer States

Since legal adult-use sales began in August 2024, Ohio has generated roughly $1 billion in total cannabis sales. Of this, around 70% came from adult-use and 30% from medical sales, according to the Division of Cannabis Control (DCC). But compared to similar or even smaller states, this figure is modest.

For context, Pennsylvania still a medical-only state generates about $1.5 billion annually. Missouri, with half the population of Ohio, exceeded $1.5 billion in its first year of adult-use sales. These comparisons highlight that Ohio’s cannabis industry is not underperforming due to a lack of demand, but because of structural and regulatory barriers that are stifling its growth.

Outdated Product Regulations Are Still Holding Ohio Back

One of the most glaring challenges is Ohio’s continued use of medical cannabis regulations to govern its adult-use market. More than a year in, popular products like pre-rolls remain unavailable, and flower must be sold in 2.83g (one-tenth ounce) units an unusual and inconvenient format that has driven consumers toward illicit markets or neighboring states like Michigan.

Standard 3.5g “eighths,” widely recognized across cannabis markets, are still not permitted, creating confusion and dissatisfaction among consumers. These limitations contribute to consumer reluctance and slow the migration from unregulated to legal sales channels.

High Prices and Retail Access Issues Push Consumers Away from Legal Channels

Pricing in Ohio is another hurdle. The average item price is $34.64 much higher than Michigan’s $8.54 and California’s $18.99. These inflated costs are pushing many Ohioans to shop elsewhere or continue relying on illicit sources.

Retail access is another concern. Ohio currently has around 160 legal dispensaries for 12 million residents. Compare that to Michigan, which has five times more dispensaries per capita, and it’s clear Ohioans especially in rural areas have limited access to legal cannabis. The gap is often filled by hemp-derived intoxicating products, readily available in convenience stores and gas stations, but outside the state’s regulatory framework.

Market Improvements on the Horizon: Policy Adjustments and Price Drops

Despite a rocky first year, the second year of Ohio’s adult-use cannabis market may bring meaningful improvements. The Joint Committee on Agency Rule Review (JCARR) is expected to approve permanent adult-use regulations that will legalize popular product types, such as pre-rolls and standardized eighths of flower. This change would help align Ohio’s offerings with consumer expectations and allow legal operators to better compete.

In addition, prices are starting to drop. Since sales began, the average price per gram of flower has fallen from $9.40 to $6.61 a 30% decrease. While this may compress margins for producers, it makes legal cannabis more competitive against illicit products and more accessible to everyday consumers.

Dispensary Expansion Is Accelerating in Underserved Areas

New dispensaries are also beginning to open at a quicker pace. Of the 160 total dispensaries, over 30 opened in 2025, many in areas previously lacking legal access. At the current rate, Ohio is expected to reach 200 dispensaries by early 2026 and over 350 by mid-2027 approaching parity with high-performing states like Missouri.

This growing network is already producing results. Leaf Link reports that average sales per dispensary have increased from $5.2 million to $5.8 million in under a year. These gains are even more impressive considering that prices have dropped during the same period, indicating growing consumer trust and participation in the legal market.

Strict Advertising Rules Prevent Public Awareness and Growth

Still, challenges remain. Ohio enforces some of the strictest cannabis advertising rules in the country, prohibiting billboards, radio and TV ads, and even promotional giveaways. Minor infractions—such as unapproved signage or using the word “recreational” have resulted in steep fines.

These restrictions have a chilling effect. Some consumers are unaware adult-use sales are even legal in their city, and many don’t know where dispensaries are located. This lack of visibility continues to stifle the growth of the legal market while unregulated intoxicating hemp products face no such limitations.

Unless the DCC and JCARR revisit these policies, regulated cannabis operators will remain at a disadvantage unable to properly compete for consumer attention in a market they’re expected to dominate.

Bipartisan Support Across Ohio Signals Long-Term Legitimacy

Ohio’s cannabis legalization was not a narrow political victory, it was a bipartisan mandate. The November 2023 vote passed with 57% of support across urban, suburban, and rural communities alike. Even conservative counties voted in favor, signaling a rare unifying issue in today’s polarized political climate.

This support has made efforts to double the adult-use tax rate from 10% to 20% a political non-starter, with both Republican and Democratic lawmakers pushing back. At the federal level, Ohio representatives such as Rep. David Joyce and Sen. Bernie Moreno have emerged as key champions of cannabis reform, amplifying Ohio’s influence on national cannabis policy.

Ohio’s Cannabis Market Could Set the Standard for the Nation

If Ohio can navigate the current roadblocks namely outdated product restrictions, high prices, poor retail access, and excessive advertising rules, it stands to become a national model for controlled yet successful cannabis legalization.

Its unique position in the Midwest, its substantial population, and its status as a political bellwether give Ohio an outsized role in shaping public perception and federal momentum around cannabis reform. If successful, Ohio could prove that cannabis legalization is not just an economic opportunity, but also a public health and social justice imperative.

What Will It Take for Ohio to Lead?

The path forward isn’t simple. Ohio regulators must continue listening to both consumers and operators, and adjust policies accordingly. Legal operators must be given a level playing field to compete with both illicit sellers and hemp-based imitators. And perhaps most importantly, public awareness must increase, allowing Ohioans to fully understand and access the benefits of a legal cannabis market.

If those steps are taken, Ohio will not just catch up to leading states like Michigan or Missouri, it may become the blueprint for how legalization is done right.