Cannabis business license applications have grown for the first time in over a year in Q2, but the total number of active licenses continues its downward trend across the US and Canada, according to a new report from CRB Monitor.
In the US, the total number of active cannabis business licenses continued to decline, marking the sixth consecutive quarter of reductions.
By the end of Q2, the number of active licenses had dropped by 2%, totaling 39,103—a decrease of 11% compared to the same period last year. This ongoing decline, which began after the peak of 44,323 active licenses in late 2022, reflects the continued consolidation within the industry.
Conversely, there has been a substantial increase in new cannabis business applications, signaling optimism for future growth. Approved and pending licenses in the US surged by 21%, largely driven by new applications in states such as New York and New Jersey.
Additionally, pre-licensing activity, which includes applications that have been submitted but not yet approved, experienced a dramatic 251% increase, reversing a year-long decline. This surge was most pronounced in New York, where retail dispensary and manufacturer/processor applications saw explosive growth.
State-specific trends also emerged during the quarter. Oklahoma and California both saw declines in active licenses due to regulatory pressures, with Oklahoma experiencing a 10% drop. However, states like New York and Michigan reported significant increases in active licenses.
New York’s active licenses grew by 48%, while Michigan added nearly 600 new licenses, representing a 17% increase. Florida stood out with a dramatic rise in pre-licensing applications for vertically integrated operators, anticipating a potential adult-use market in the near future.
In Canada, the cannabis business landscape showed signs of maturity and stabilization. The number of active licenses fell by 6% in Q2, continuing a downward trend from the previous quarter.
Despite this decline, there was a slight increase in approved and pending licenses. However, pre-licensing applications reached a two-year low, indicating a slowdown in new market entrants.
The post Cannabis Industry Consolidates as New Markets Drive Licensing Growth appeared first on Business of Cannabis.
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