Ohio’s Cannabis Market in 2025: What’s Next After a $700M+ First Year

Ohio’s adult-use cannabis industry is growing up fast. In just over a year, the market has topped $702.5 million in recreational sales and brought in more than 109,000 pounds of flower sold to consumers statewide. That’s a big milestone for a state that only launched adult-use sales in 2024.

And that momentum continues to build. Let’s take a look at what’s shaping the Ohio market in 2025: the data behind the boom, the changing regulations, and what’s coming next for dispensaries, brands, and consumers.

A Strong Start: Over $700 Million in First-Year Sales

According to the Ohio Capital Journal, Ohio’s first year of recreational sales surpassed $702.5 million. Dispensaries sold more than 109,706 pounds of flower, and the average price per gram hovered around $6.63.

That’s a strong showing for a market that only opened its doors to adult-use consumers a year ago. Data from Headset shows that by September 2025, sales hit $82.3 million for the month, marking 7.8% year-over-year growth and a 27% jump in units sold.

As a result, Ohio is becoming one of the most active and promising cannabis markets in the Midwest.

More Stores, More Competition

When voters approved adult-use cannabis in 2023, Ohio built a framework that stood out: no cap on dispensary licenses. While that has since changed, with the Department of Cannabis Control imposing caps in certain localities in September 2024, that openness created room for new businesses and more access for consumers.

By mid-2025, there were 159 dispensaries licensed to sell both medical and adult-use cannabis (Ohio Capital Journal)—a sign that the market that’s expanding quickly but also starting to feel competitive pressure.

As more dispensaries open and supply catches up with demand, prices are gradually leveling off. Headset reports the average item price in Ohio dropped to $32.38 in September 2025, signaling a maturing market that’s finding its balance between access and profitability.

Ohio’s Regulations Are Still Evolving

Ohio’s cannabis program may be established, but it’s far from settled. Over the past several months, lawmakers and regulators have been working to refine the rules around both adult-use cannabis and hemp-derived products — two overlapping industries that are now at the center of debate.

The Ohio Hemp Ban and What Happened Next

Governor Mike DeWine’s administration made headlines in October 2025 by attempting to ban the sale of intoxicating hemp products, including items containing delta-8 THC and other hemp-derived cannabinoids. His executive order was intended to close loopholes allowing unregulated products to be sold in smoke shops, gas stations, and convenience stores.

But within days, a Franklin County judge issued a temporary restraining order, pausing enforcement of the ban and allowing stores to resume sales — at least for now (Ohio Capital Journal).

The order sparked confusion for both hemp retailers and licensed cannabis operators. While dispensaries operate under strict testing and packaging standards, hemp businesses have been able to sell intoxicating products outside that framework. The governor and some legislators argue that oversight needs to be consistent, while others believe the hemp market should remain separate from adult-use cannabis.

This debate is expected to resurface during the next legislative session as Ohio seeks a more permanent fix.

SB56: Still on the Table

Earlier in 2025, Ohio lawmakers introduced Senate Bill 56 (SB56) — a wide-ranging proposal that would have reshaped parts of the state’s cannabis law. The bill sought to reduce maximum THC potency for extracts, limit active dispensary licenses to 400, and move intoxicating hemp sales into the licensed dispensary system (Ohio Capital Journal).

By June, however, legislative leaders announced they were going to “push pause” on cannabis legislation for the summer, leaving SB56 stalled in committee. Lawmakers cited the need for more stakeholder input and data before making sweeping changes.

But the pause didn’t last long. In October, the Ohio House revived and passed a version of SB56 that would roll back some of the voter-approved protections in the state’s adult-use law and add new restrictions on hemp (Marijuana Moment).  The measure includes provisions to recriminalize possession of cannabis purchased outside Ohio, prohibit smoking or vaping cannabis in most public spaces, and remove workplace anti-discrimination language tied to legal use.

It also takes aim at the hemp market, introducing stricter limits on intoxicating hemp products, moving their sales under the dispensary system, adding a new tax on hemp-derived beverages, and capping THC content in edibles.

SB56’s evolution over the year highlights how quickly the state’s cannabis landscape can shift.

 

New Product Categories Are Fueling Growth

If you’ve been following the Ohio market, you’ve probably noticed a new buzz: pre-rolls are finally hitting shelves.

After being absent from the early adult-use rollout, pre-rolls are now one of the fastest-growing categories in the state. As Local 12 Cincinnati reports, dispensaries expect pre-roll sales to boost overall revenue and introduce more convenience for customers who prefer ready-to-enjoy products.

Headset’s data backs that up — pre-rolls saw 708% month-over-month growth earlier this year, a huge sign that Ohio’s consumers are exploring new formats and evolving their buying habits.

The Border Advantage: A Midwest Magnet for Cannabis

Ohio’s location also plays a big role in its success. Most neighboring states still lack adult-use programs, giving Ohio a clear “border advantage.” Consumers from nearby states regularly cross state lines to shop at Ohio dispensaries, which has fueled steady demand and helped retailers build broader customer bases.

As Headset’s forecast noted, that cross-border interest could help Ohio eventually reach $2 billion in annual sales as the market matures.

 

What’s Next: Growth, Innovation, and Market Maturity

Ohio’s cannabis industry is entering its next phase. The early “launch” period is over, and businesses are now focusing on smarter operations, tighter margins, and deeper customer relationships.

Sales will keep rising, but competition will too. Expect to see more dispensaries embracing loyalty programs, mobile apps, and data-driven marketing to keep customers coming back.

Prices will continue to normalize. With more supply, lower wholesale costs, and tighter competition, operators who optimize their digital strategy and differentiate through experience will fare best.

Regulation will keep evolving. Between the paused SB56 bill, the ongoing hemp debate, and new rulemaking expected in 2026, cannabis operators will need to stay nimble and engaged with state policymakers.

 

Opportunities for Ohio Dispensaries

For dispensaries, 2025 is the year to fine-tune operations and strengthen customer loyalty. Ohio consumers have shown they’re ready — now it’s about meeting them where they are with better digital tools, personalized offers, and seamless eCommerce experiences.

At Mosaic, we’ve seen how the right technology can help dispensaries not just grow, but thrive. A mobile-first, ADA-accessible platform with integrated loyalty, push notifications, and data insights gives retailers the ability to drive repeat purchases and larger basket sizes — even as the market tightens.

The dispensaries that win in this next chapter will be the ones that use data smartly, communicate clearly, and build experiences customers genuinely enjoy.

 

The Bottom Line: Ohio Is Just Getting Started

Ohio’s cannabis market is strong, young, and still finding its rhythm. The first-year numbers show promise, but the real test will come as regulation and competition evolve side by side.

From Governor DeWine’s hemp ban to the uncertain future of SB56, the state’s policy direction is still being written — and the businesses that stay informed, flexible, and customer-focused will have the best shot at long-term success.

Ohio is no longer just “catching up.” It’s carving out its own identity in the cannabis economy — and for operators who stay ahead of the curve, the future looks bright.