Illinois adult-use cannabis retailers moved a record amount of product in 2025, but tumbling prices meant a $200 million year-over-year drop in sales revenue.
Recreational cannabis shops sold 52.1 million units last year, up from 49 million in 2024, according to the Illinois Department of Financial and Professional Regulation.
However, retailers recorded only $1.5 billion in revenue – down from a record-breaking $1.7 billion in 2024 – amid price compression that’s affecting markets across the country.
Cannabis price compression hits Illinois hard
Meanwhile, medical cannabis sales continued on the same downward trajectory seen since 2021.
In April 2025, the latest data available, $21.8 million of medical marijuana was sold, down from $25 million in April 2024, according to the Illinois Medical Cannabis Patient Program.
Annual MMJ sales were not immediately available. Illinois regulators did not immediately respond to an MJBizDaily request for comment.
Price compression is behind the decline at the till even as retailers are busier than ever. Flower prices dropped from a high of $17.50 per gram in April 2020 to $5.72 in November, according to the Cannabis Regulation Oversight Officer.
While falling prices have been a win for consumers, Illinois cannabis businesses continue to struggle with profitability, according to the Chicago Tribune.
Illinois remains among the largest U.S. cannabis markets. California is No. 1 with roughly $4 billion in annual sales, followed by Michigan with $3.17 billion in sales last year. Massachusetts sales hit $1.65 billion last year despite falling prices.
Will the hemp THC ban and marijuana rescheduling help Illinois retailers?
Relief may be on the horizon after President Donald Trump’s December executive order directing the Justice Department to reclassify marijuana from a Schedule 1 to a Schedule 3 drug, which would ease tax burdens.
Another measure that would help licensed cannabis businesses is the ban on intoxicating hemp, set to take effect in November Tim O’Hern, chief operating officer of cultivator Nature’s Grace and Wellness, told the Tribune.
Nature’s Grace purchased Okay Cannabis dispensaries after the stores closed last spring and has been opening new Bud & Rita’s dispensaries.
“Lower tax rates and the intoxicating hemp ban will really accelerate the regulated cannabis market and provide more opportunities for new operators,” O’Hern said.
