In another troubling sign of the times, the number of inactive marijuana business licenses in California now surpass active permits.
According to an analysis by SFGate, inactive and/or surrendered licenses climbed to 10,828 compared with 8,514 active licenses.
Jonatan Cvetko, the executive director of the United Cannabis Business Association, called the California market a “complete failure,” the news outlet reported.
A 2023 rule change allowing cannabis cultivators to consolidate smaller licenses into a large one accounted for 1,071 inactive licenses, state regulators told SFGate.
The number of inactive licenses, per business segment, include:
- Distribution: 1,100-plus.
- Delivery: Nearly 500.
- Retail: More than 300.
California’s decline in active licenses, fueled by failing cultivation businesses in the Emerald Triangle, overregulation and a thriving illicit market, has likely also affected national licensing trends.
The number of active cannabis business licenses in the United States – including those in regulated medical and recreational markets – continued to decline through the third quarter of 2024 as reductions in established markets outpaced growth in emerging ones, MJBizDaily reported in November, citing CRB Monitor data.
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