Approved and pending marijuana licenses rise in US for first time in 2 years

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The number of pending and approved marijuana business licenses in the United States increased 21% during the second quarter of 2024.

That's according to CRB Monitor’s most recent Cannabis Business Licensing Activity report, which notes the change brings the total number of pending and approved cannabis business licenses to 5,687, the highest total in more than two years.

States including New Jersey and New York led the surge, with 17% more new licenses approved and pending nationwide than in 2023.

But overall, the number of active marijuana business licenses nationwide dropped by 2% in the second quarter of 2024, marking the sixth consecutive quarterly decline.

No state experienced a decrease in active licenses greater than 10% during the second quarter, signaling that regulated marijuana markets across the country are reaching stabilization after two years of consolidation.

“The trends in cannabis business licensing in the second quarter suggest that older markets have stabilized, and operators are optimistic about emerging markets in states such as New York, New Jersey, Florida and Ohio,” said Steve Kemmerling, chief executive of CRB Monitor, a Nashville, Tennessee, firm that tracks marijuana licensing data in the U.S. and Canada.

Canada’s cannabis industry also is exhibiting signs of maturity and stability, according to CRB Monitor's report.

The number of active licenses in that country dropped by 6% in the second quarter to 5,869, down from a peak of 6,860 in the fourth quarter of 2023.

Although active licenses declined, approved and pending licenses increased from 12 to 14 in the second quarter.

But fewer businesses are entering the Canadian market, as evidenced by a two-year low of 256 pre-licensing applications.

Cultivation and retail licenses are still the most popular cannabis license types in both the United States and Canada, which experienced increases in the number of pending and approved licenses of 22% and 14%, respectively.