What began as a booming industry in Arizona has reached a plateau during its fourth year. Whether it is employment within the cannabis industry, a lack of medical marijuana cardholders or an overall decline in yearly sales, Arizona’s cannabis industry continues to ebb and flow.
Multiple recent reports point to an industry in transition. A 2025 job report from Vangst, a Denver-based cannabis employment agency, found that Arizona has seen a dramatic shift in cannabis jobs. Arizona lost roughly half its cannabis-related jobs, the most significant change in cannabis jobs in the country. In March 2024, there were 20,000 positions, a number that fell to 10,000 this January.
Vangst noted that this shift was likely due to an overall decline in statewide sales. Local media reported that the second quarter of 2025 has seen the most significant decrease in cannabis sales since 2020.
Similarly, data from the Arizona Department of Health Services has revealed that in July 2024, there were fewer than 100,000 registered medical patients. That figure has continued to decline, and as of January of this year, there are 87,712 medical patients; compared to 2023, when there were 148,958 medical cardholders.
It is not abnormal for a mature cannabis market to see shifts in cash flow. Yet, veteran states like California, Colorado, Washington and Michigan are ranked as the top states for cannabis employment, according to Vangst.
As for what’s next, dispensaries and cannabis companies will have to adjust to an oversaturated market, which typically involves expanding out of the state.
This article appears in Sep 4-11, 2025.