WASHINGTON STATE – Cannabis sales in Washington have fallen for the fifth consecutive year, marking a sustained decline that industry experts say is fueled by an oversupply of products and steep price drops.
Sales Continue Downward Trend
According to the Washington Department of Revenue, statewide cannabis sales totaled $277 million in the first quarter of 2025 — nearly $100 million less than the same period in 2021, when sales reached their pandemic-era peak. Data from the Washington Liquor and Cannabis Board (WLCB) shows that annual sales have steadily declined each year since 2021, and projections indicate that 2025 could see the lowest sales totals since 2019.
Oversupply and Price Drops
Industry insiders point to one primary cause: oversupply. With more cannabis available than the market demands, prices have plunged, cutting into overall revenue despite steady customer traffic.
“The price of cannabis is going down, and the price of everything else is going up,” said Ocean Greens, owner of a North Seattle pot shop. While the number of customers has not dropped significantly from pandemic highs, the amount they spend per visit has shrunk due to lower prices.
Customer Jacob DeAngeles noted the shift: “It is a pretty big surprise, because usually this place is pretty busy when I come here,” he said, adding that while shops remain active, the economics have changed.
Impact on Retailers
For dispensary owners, the steady stream of customers offers some reassurance — but the shrinking per-purchase revenue poses challenges. Greens explained that unlike alcohol, where consumption can increase over the course of an evening, cannabis users tend to consume a fixed amount.
“There’s not much difference between those days and now, just their pockets are a little bit thinner,” Greens said.
Customer Perspective
For buyers, the falling prices are a welcome development. “You come in here with 30 bucks and get an ounce. It gets the job done!” DeAngeles said. “I’m glad the prices have gone down, because I can come here and get a whole lot more for my money.”
While the affordability benefits consumers, the trend has placed additional strain on businesses already contending with rising operational costs, including rent, wages, and taxes.
Comparisons with Alcohol Sales
State data reveals that alcohol sales have remained largely stable since the pandemic, even as cannabis revenue has dipped. Greens attributes the difference to consumption patterns: “People keep drinking after they’re already drunk, while cannabis users usually stop once they’re high,” he explained.
Looking Ahead
If current trends continue, Washington’s cannabis market will close out 2025 with its weakest sales performance in six years. Retailers and growers alike may face further consolidation as competition intensifies and profit margins shrink.
For now, while the state’s cannabis industry still serves a steady customer base, the economic landscape has shifted dramatically — turning what was once a booming market into a sector grappling with too much supply, too little revenue, and an uncertain future.
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