After years of double-digit growth, active marijuana business licenses in the United States declined for the first time in 2023.
That's according to a new report by CRB Monitor, a cannabis intelligence firm that tracks and monitors licenses.
Active U.S. cannabis business licenses – including those in medical and recreational marijuana markets – declined 4% from 2022 to 2023.
By contrast, the number of active Canadian cannabis business licenses increased 2% during the same period.
The total number of active licenses in the two countries combined had been doubling nearly every year since 2019.
But signs of a plateau appeared in 2022, when year-over-year growth slid to 28%.
In fact, the number of active U.S. and Canadian marijuana licenses peaked at 51,000 during the first quarter of 2023; active licenses slipped later in the year, which ended with roughly 49,200 active licenses, a 2% decrease from 2022.
CRB Monitor CEO Steve Kemmerling believes the plateau might be good for the industry.
"The leveling off of license counts reflects a natural consolidation of a new market entering its early adolescence," he told MJBizDaily data reporter Andrew Long.
"As painful as it is for individual participants caught up in it, (consolidation) is a healthy reaction that will set up the industry for sustainable future growth."
Check out Andrew’s story for a deeper dive into the licensing numbers.