In this article, we are going to discuss the 20 cities with the highest weed consumption in the US. If you also want to find out which cities are smoking the most weed around the globe, here is our list of the 20 Cities with the Highest Weed Consumption in the World.
In the United States, marijuana wasn’t widely used for recreational purposes until the early 1900s. After the Mexican Revolution of 1910, immigrants from the southern neighbor flooded into the U.S., introducing the recreational use of cannabis to American culture.
Massive unemployment and social unrest during the Great Depression stoked resentment of Mexican immigrants and public fear of the ‘evil weed’. As a result, and consistent with the Prohibition era’s view of all intoxicants, these political and racial factors led to the criminalization of cannabis in 1937 with the passage of the Marijuana Tax Act. However, its legal status is now changing in many places.
Cannabis Industry in the United States:
The United States of America is the country that smokes the most weed in the world. The American legal cannabis industry fared well in 2023, as according to Whitney Economics, legal sales across the 38 states that allow some form of regulated marijuana reached $28.8 billion, a 10.3% increase from the previous year. Meanwhile, the legal cannabis industry also added 22,952 new jobs last year – a sign that the business climate has stabilized somewhat nationally after the turmoil of the previous two years. The increasing legalization of cannabis and rising acceptance of its use for medical purposes are the key factors driving the growth of the market.
Growth is also expected to come from new markets, as states like South Dakota, Florida, and Nebraska are expected to have marijuana legalization on November ballots. As of the writing of this article, 24 states have legalized recreational weed in America, in addition to the District of Columbia.
Problems Faced by the Legal Cannabis Industry:
One of the biggest issues faced by the American cannabis industry is federal illegality, which makes the cost of doing business for weed companies higher than any other business. Due to the difference in federal and state marijuana laws, cannabis companies cannot receive traditional banking or loans, forcing them to resort to high-interest options. They also don’t have bankruptcy protections like traditional businesses so when these companies falter, receivership is one of their few options. Similarly, insurance comes with sky-high costs as well.
Another big barrier to making money is the enormous amount of taxes weed companies pay because they’re treated like illegal narcotics traffickers under the federal tax code. The goods also cannot cross state lines and that lack of interstate commerce means companies must build separate farms, factories, and stores in each state where they do business and navigate a rapidly evolving patchwork of state regulations.
Additionally, the constantly narrowing gap between supply and demand has caused prices to nosedive. The tough competition from the black market also puts pressure on legal retailers to keep prices low. The increasingly strong position of Donald Trump in the upcoming presidential election is also a worrying sign for the country’s cannabis sector, as Republicans have historically been more wary than Democrats about legalizing marijuana for recreational use
A combination of the aforementioned factors and more have driven America’s legal cannabis industry into a corner and Whitney Economics has revealed that the U.S. legal cannabis market has a total of $3.8 billion in delinquent payments – equal to nearly two months’ worth of the total retail sales in 2023. Meanwhile, a survey conducted last month by the Minority Cannabis Business Association has revealed that only 27% of U.S. legal cannabis operators are currently profitable, with 41% breaking even, and 32% losing money. The situation is even worse for non-white businesses, of which only 17.5% are profitable. According to the U.S. Chamber of Commerce, 65.3% of all small businesses in the country are profitable, so these figures are well below the national average.
A New Hope:
Having said all that, a silver lining has recently appeared for the American legal cannabis industry. In May, the U.S. Justice Department officially proposed a new rule that would reclassify marijuana from a ‘Schedule I’ drug, which includes heroin and LSD, to a less tightly regulated ‘Schedule III’ drug, which includes ketamine and some anabolic steroids. The decision marks a major policy shift by the federal government and while it would neither make the substance legal nor decriminalize it on a federal level, it would recognize the medical uses of cannabis and acknowledge that it has less potential for abuse than the other more harmful drugs. According to the MCBA, the rescheduling could also add 55,500 jobs by 2030, generating up to $2.7 billion in wages and $5.6 billion in new economic activity.
Another significant benefit of the reclassification is that it could add fresh arguments for supporters of ballot measures seeking to legalize cannabis in states where it is still illegal. But perhaps the ones benefiting the most from this change are cannabis companies, which after the rescheduling would no longer have to follow tax provisions under a rule called 280E, which prevents them from taking standard business tax deductions. The MCBA estimated the industry has overpaid $2.2 billion in taxes compared to other sectors due to this restriction.
Although the rescheduling is far from the federal legalization that the cannabis industry is so desperately waiting for, it is a step in the right direction. As a result, several marijuana companies have expressed some much-needed optimism following the announcement, including Tilray Brands, Inc. (NASDAQ:TLRY) – one of the Biggest Marijuana Companies in the World.
Irwin Simon, the chairman and CEO of Tilray Brands, stated the following in the company’s Q3 2024 earnings call transcript:
“In the U.S., Tilray has multiple options and, in particular, is well positioned to benefit from the federal legalization of medical cannabis as a result of rescheduling. Yes, we believe that the rescheduling of cannabis from Schedule I to Schedule III in the U.S. would provide a path for Tilray to sell pharmaceutical grade medical cannabis in the U.S. subject to doctor prescriptions.
This is a different strategy from what MSOs are doing today. We believe there’s an opportunity to supply medical cannabis products from our existing operations into the U.S. for medical purposes. Further in the event of a future federal adult-use and medical cannabis legalization in the U.S., we believe Tilray is well positioned to immediately leverage its strong global leadership position, know-how and strategic strengths across operations, distribution and brands to sell THC infused products across its robust distribution network and sales channels in the U.S.”
As a result of the rescheduling announcement by the US Justice Department on May 16th, Tilray saw its share price move up by 6.3%. A day later, the company announced that it had filed for the sale of up to $250 million worth of its common stock through an at-the-market equity program. Tilray Brands, Inc. (NASDAQ:TLRY) plans to use proceeds from the sale to fund acquisitions or investments, including potential purchases of assets in the U.S. ‘in order to capitalize on expected regulatory advancements or expansion opportunities’.
Shares of Tilray Brands, Inc. (NASDAQ:TLRY) were held by 14 hedge funds at the end of Q1 2024, with a collective stake value of over $14.7 million, putting it on our list of the Best Pot Stocks to Buy.
With that said, here are the Cities that Smoke the Most Weed in America.
A close-up of a package of cannabis accessories, displayed on a brightly-lit retail shelf.
Methodology:
To collect data for this article, we have referred to the 2023 Cannabis Price Index by the CFAH, looking for the American Cities with the Highest Weed Consumption. To keep our list relevant, we have only selected larger cities with populations of 200,000 or more. When two cities had the same consumption of cannabis, we ranked them by their average price per gram of weed.
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20. Kansas City, MO
Total Weed Consumption: 1.4 metric tons per year
Missouri legalized adult-use cannabis in November 2022 and the state’s regulated weed industry has witnessed explosive growth ever since. In all, more than $2.29 billion worth of legal adult-use and medical marijuana has been sold in the Show-Me State since legalization.
19. Boise, ID
Total Weed Consumption: 1.4 metric tons per year
While its neighboring states allow recreational and medical marijuana use, Idaho remains strictly bud-free. Hundreds of consumers travel every day to Oregon to purchase cannabis products. In 2022, the border town of Ontario, OR, boasted a total of $104 million in cannabis sales and this is especially impressive given that the town has a small population of only around 11,000 people. According to Deborah Folden – the mayor of Ontario – the town’s cannabis market caters almost exclusively to Idaho residents.
18. Honolulu, HI
Total Weed Consumption: 1.6 metric tons per year
In March, the Hawaii state Senate passed a bill to legalize recreational marijuana for adults and create a regulated and taxed market for adult-use cannabis. If passed by the House and signed into law, the legislation will allow adults aged 21 and older to possess up to an ounce of cannabis and up to five grams of concentrates as of January 1, 2026.
17. Miami, FL
Total Weed Consumption: 1.6 metric tons per year
Even though medical cannabis has been the law in Florida for years, it’s illegal to consume marijuana for recreational purposes. In April, the Florida Supreme Court gave the final green light for Amendment Three to head to the ballot this fall, which would effectively legalize recreational weed in the Sunshine State.
16. Baltimore, MD
Total Weed Consumption: 1.7 metric tons per year
Recreational marijuana became legal in Maryland starting July 1st 2023. In just the first five months since legalization, the state’s adult-use cannabis sales managed to cross $270 million. Maryland is handing out 75 dispensary licenses this year to gain more legal retailers, with 11 going to Baltimore.
15. Washington D.C.
Total Weed Consumption: 2 metric tons per year
Next up in our list of the Top Weed Consuming Cities in America is the capital. Although D.C. voters approved the Legalization of Possession of Minimal Amounts of Marijuana for Personal Use initiative in 2014, a rider from Rep. Andy Harris (R-MD) has barred the District from using its local tax dollars to implement a commercial cannabis market for years. This changed last month when a GOP House committee unveiled a large-scale spending bill that omitted the longstanding rider, thus opening doors for Washington D.C. to legalize recreational marijuana sales.
14. Detroit, MI
Total Weed Consumption: 3 metric tons per year
Michigan is the state with the highest per capita sales of weed in America at $132.41, according to data provided by Headset – a cannabis market intelligence firm. It was also announced recently that the Great Lake State has even surpassed California as the largest cannabis market in the U.S. in terms of sales volume. In May 2024, Michigan sold 24.2 million units (defined as a single item that a customer buys, such as a pre-rolled joint, a multipack of pre-rolled joints, a jar of flower, or a pack of gummies), while California sold 17.3 million units. However, California still takes the lead in terms of revenue due to its much higher prices of weed.
13. Albuquerque, NM
Total Weed Consumption: 3 metric tons per year
The first recreational dispensaries in New Mexico began licensed sales of weed in April 2022, and it was announced in March this year that the state’s cannabis industry has already crossed the billion-dollar mark, with $75 million in cannabis excise taxes going to the state general fund and local communities.
12. Boston, MA
Total Weed Consumption: 3.6 metric tons per year
The legal marijuana industry in Massachusetts is showing signs of maturing. In five years since the first recreational dispensary in the state opened in Northampton in 2018, legal retailers have sold more than $7 billion in medical and recreational marijuana, according to data from the state’s Cannabis Control Commission.
But prices have plummeted – from a high of nearly $15 per gram of flower when stores first opened to almost $5 per gram this year.
11. Lincoln, NE
Total Weed Consumption: 3.7 metric tons per year
The state of Nebraska has decriminalized possession of small amounts of cannabis, punishing possession of up to one ounce with a $300 citation, but the sale of any amount of marijuana is still a felony. However, it was announced this month that Nebraskans for Medical Marijuana turned in two petitions to the Secretary of State to put medical cannabis reform on the November ballot.
With a per capita weed consumption of 12.64 grams, Lincoln is included among the Most Stoned Cities in the U.S.
10. Las Vegas, NV
Total Weed Consumption: 4.1 metric tons per year
While recreational marijuana has been legalized in Nevada, it is only legal if you are 21+ and smoking in a private residence, pushing consumption onto the Strip, into parking lots, and really pretty much everywhere in the open around the city.
As a solution, marijuana consumption lounges were approved in September 2022 in Las Vegas and Clark County. In February 2024, Smoke and Mirrors – the first regulated cannabis consumption lounge in Nevada – opened up in Las Vegas, giving visitors a place to legally enjoy their weed.
9. Seattle, WA
Total Weed Consumption: 4.6 metric tons per year
Reaffirming the importance of the medicinal benefits of marijuana, a new law took effect in Washington state last month removing the requirement for patients with a medical cannabis card to pay the 37% excise tax, reportedly the highest cannabis tax in the country.
With an average price per ounce of around $234 for high-quality weed, Washington is included among the States with the Cheapest Weed in America.
8. Portland, OR
Total Weed Consumption: 5 metric tons per year
Portland was declared the Weed Capital of the United States or ‘The Best Weed City’ in 2023, according to a study by Real Estate Witch and Leafly. Portland Community College is now also offering cannabis programs to students who want to pursue a career in the marijuana industry upon graduation.
Oregon is included among the States that Smoke the Most Weed in America, with an estimated 32.8% of its adult population having smoked up within the past year. Oregon is also the State with the Most Dispensaries per Capita, with 16.5 cannabis dispensaries per 100,000 people.
7. Denver, CO
Total Weed Consumption: 6.8 metric tons per year
Colorado’s weed market has rapidly declined over the last few years, mostly due to the plummeting prices. In 2020, the state’s legal cannabis market soared to $2.2 billion, but just three years later, sales have declined to $1.5 billion, while cannabis tax revenues also fell by 30% last year.
6. Philadelphia, PA
Total Weed Consumption: 10.6 metric tons per year
Pennsylvania state lawmakers have recently announced their intent to file a new bill to legalize recreational cannabis. Analysts estimate that the Keystone State’s adult-use marijuana sales would range from $1.7 billion to $2.8 billion in the first year while bringing in $420 million to $720 million for state coffers.
5. Phoenix, AZ
Total Weed Consumption: 11.4 metric tons per year
According to the Arizona Department of Revenue, the state’s retailers sold nearly $1.5 billion worth of recreational and medical cannabis in 2023, a record since adult-use sales began in January 2021. Meanwhile, the recreational cannabis market contributed $172.8 million in excise tax revenue for the Grand Canyon State, with the lion’s share going to community college and provisional community college districts.
