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420 with CNW — 2023 Marijuana Business Licenses Declined in US, Data Firm Says

The number of active cannabis company licenses in the United States saw a substantial dip in 2023, the first decline following years of steady increase, according to a recent CRB Monitor report. According to the data, there was a 4% drop in the number of active marijuana licenses in the U.S. between 2022 and 2023. On the other hand, Canada saw a 2% growth in the quantity of active marijuana business permits over the same period.

CRB Monitor is a company based in Nashville, Tennessee, specializing in marijuana intelligence and license monitoring.

Since 2019, the combined total of active licenses in both countries had been doubling annually, but signs of a slowdown emerged in 2022 when the growth rate decreased to 28%. The overall number of active licenses reached a high of 51,000 at the start of 2023, but by the end of the year, it had decreased to about 49,200, a 2% decline from the year before.

In the United States, the peak number of active licenses reached approximately 44,300 in 2022. Despite a robust influx of new licenses in 2023, nearly 1,900 licenses were lost or abandoned by the year’s end. However, there was a notable increase in approved licenses, indicating newly licensed marijuana businesses yet to commence operations. This category saw a significant surge of 23% in 2023, with the most growth occurring from January to September.

Despite this increase, the new licenses couldn’t offset the losses experienced in established markets, where operators faced financial challenges. The decline in active licenses was particularly evident in established markets such as California, where license numbers dropped by 19% in 2023. Other established markets experiencing a reduction in active licenses included Washington State, Colorado, Nevada and Illinois.

On the other hand, the largest increase in domestic marijuana business permits was observed in newly established and developing state markets in 2023, with several states issuing hundreds of new business licenses. New Mexico topped the country with more than 600 newly issued active permits. Michigan followed with 550 active permits, New York added about 360 and Vermont issued 239 new permits.

In Canada, there were 6,860 active marijuana licenses at the end of 2023, up 2% from the previous year despite a few store closures. Furthermore, recreational marijuana sales in Canada increased by 12% in 2023 to reach CA$5 billion ($3.8 billion). However, the number of pending licenses awaiting approval decreased by 13% in 2023 and by 45% since 2022.

The cannabis industry in both the United States and Canada faces major challenges, and the continuing success of licensed businesses such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) is testament to the overall resilience of the industry and the undeniable strong demand for the cannabis products.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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