CRB Monitor 2Q 2025 Business License Activity Review

U.S. Cannabis Industry Consolidation Accelerates in Q2 2025

The latest quarterly cannabis licensing report from CRB Monitor reveals an industry in the midst
of a profound and ongoing transformation. The data for the second quarter of 2025 underscores
a clear trend of consolidation and strategic retrenchment across established North American
markets, even as nascent markets like New York show explosive, albeit isolated, growth.

The overarching narrative is one of correction. The total number of active cannabis business
licenses in the United States fell to 37,889, extending a multi-year national decline —  a 13% contraction over the past two years and a clear indicator that the era of unchecked expansion is over. Markets are maturing, and operators are grappling with economic realities like margin compression and intense competition.

This consolidation is most evident in the sharp decline of future-oriented metrics. The number of approved and pending licenses — which represent the near-term pipeline of new businesses — plummeted 14% in Q2, marking the fourth consecutive quarterly drop. Similarly, new license applications (“pre-licensing” activity) fell 4%, a figure that becomes even more stark when considering it’s down 40% from two years ago.

“What we’re witnessing is the great rationalization of the American cannabis industry,” said Steven Kemmerling, CEO of CRB Monitor. “The boom of initial licensing has subsided, and the market is now ruthlessly shedding excess capacity. This is a painful but necessary phase that will ultimately create a more stable and sustainable foundation for future growth.”

Download CRB Monitor’s Second Quarter 2025 Cannabis Business Licensing Review: A Broad Leveling Across Markets to get the full picture of cannabis business licensing, including applications, approved licenses and active operations.

Among the licensing highlights in our exclusive research report:

• New York’s licensing activity is on a trajectory of its own, accounting for a staggering 88% of all new license applications currently under review in the entire U.S.
• Other states showing significant growth included Connecticut, the District of Columbia and Ohio, while Oklahoma shed another 259 licenses.
• The Canadian market held steady, with active licenses remaining in the 5,800 range for the fourth consecutive quarter, signaling a period of stability after its own period of contraction.
• Vertically integrated operators were the fastest-growing license type over the past two years, more than doubling in number.
• One bright spot in minor license categories was social use clubs, which grew 18% for the quarter and have seen a four-fold increase over the past year.

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