Slumping Medical Cannabis Sales in Illinois Drag Down Overall Cannabis Revenue in Early 2025

Despite a record year in 2024, Illinois’ cannabis industry is facing a slowdown in early 2025, with medical marijuana sales showing significant declines and affecting overall revenue growth.

Illinois, which celebrated a banner year in cannabis sales in 2024, is now grappling with a noticeable downturn in medical marijuana (MMJ) sales. From December 2024 through the end of February 2025, the state’s total cannabis sales reached $488.7 million, according to data from the Illinois Cannabis Regulation Oversight Office. While these sales are still impressive, they represent a slight decrease from the $501.7 million recorded during the same period in 2024, primarily due to declining MMJ sales.

Medical Cannabis Sales Take a Hit: Illinois Faces Declining Revenue in 2025

Adult-use cannabis retailers, however, continued to see growth, with $424 million in sales for the December 2024-February 2025 period—an increase from $423.3 million a year ago. Despite this, the biggest cause of concern is the drop in medical marijuana sales, which have significantly fallen from last year’s figures.

For the December 2024-February 2025 period, MMJ sales totaled $64.7 million, a sharp decline from $78.4 million recorded during the same period in 2023. This drop in sales is contributing to the overall dip in cannabis revenue, raising questions about whether Illinois will see a continued decline in MMJ sales throughout the year.

Impact on Illinois’ Cannabis Market: Will Declining MMJ Sales Affect Overall Growth?

While it’s still too early to predict the long-term impact of this decline, the numbers are concerning. Illinois had previously experienced steady growth in cannabis sales, with the state exceeding $2 billion in total marijuana sales for 2024, a 2.5% increase from 2023. Adult-use marijuana retailers accounted for the majority of this total, reaching $1.72 billion in sales, while MMJ dispensaries hit $285.1 million.

The state has 244 adult-use cannabis stores in operation, with an additional 121 social equity stores in various stages of approval, according to the office of Democratic Gov. JB Pritzker. However, the decline in medical marijuana sales could signal a shift in the market, with adult-use marijuana sales continuing to grow while medical marijuana faces challenges.

Can Illinois Cannabis Market Recover from the Slowdown?

While adult-use cannabis sales are holding steady, the overall market for medical marijuana is facing challenges as the state enters 2025. It remains to be seen whether this is a temporary setback or a more prolonged issue. As the year progresses, stakeholders in Illinois’ cannabis industry will be closely monitoring sales trends, especially in the medical marijuana sector, to gauge whether this downturn will continue to affect the market.

For now, the decline in MMJ sales serves as a reminder of the fluctuating nature of the industry, even in a state like Illinois that has enjoyed considerable growth in recent years. The coming months will be crucial in determining if the state’s cannabis market can maintain its upward trajectory or if the trend will signal a broader slowdown.