Reflections From Maryland’s 2025 Cannabis Market: Stabilizing, Resettling and New Opportunities for Operators

Maryland spent 2025 finding its footing, and that shift is giving the cannabis market a clearer path forward. The pace slowed. Competition became real. Rules tightened. Consumer behavior shifted. None of this signals decline. It simply shows a market settling into its next phase.

For dispensaries, this moment is a fresh chance to look ahead, make thoughtful adjustments and build a stronger foundation for 2026. The Maryland cannabis market still holds plenty of potential, and the retailers who understand current trends can step into the new year with clarity.

What follows is a look at the most important developments shaping the Maryland cannabis market, supported by data and reporting across the industry.

Sales Performance: A Flat Year on Paper, A Telling Year in Practice

According to Headset’s Maryland market report, total sales held steady in 2025 while unit volume increased by 5.9 percent. This combination usually reflects a shift toward value shopping. Maryland consumers are still purchasing cannabis, and in fact they are buying more individual products, but they are choosing lower priced or discounted items more often.

Some key category trends in Maryland:

• Pre-rolls posted the strongest category growth, increasing 12.1% year over year
• Vapes held one of the largest category shares in Maryland, remaining a core part of consumer purchasing patterns throughout 2025.
• Edibles and beverages recorded positive year-over-year growth, supported by a consistent rise in unit sales across both formats.

As FOX Baltimore noted in a mid-year report, 2025 has been shaped by loopholes, competition and regulation-induced slowdown (including a tax increase from 9% to 12% that went into effect October 1). For many operators, the Maryland cannabis market felt less like a growth story and more like a year of holding ground. Even so, consumption remained healthy, and the shift in shopping patterns provides useful insight into what consumers value most. 

 

Regulatory Updates: A Clearer and More Structured Environment

Maryland regulators placed significant focus on compliance and ownership transparency in 2025. One example came when the state denied a cannabis license after identifying ownership changes that occurred after the lottery process. The commission noted that it was required to follow the rules as written when reviewing whether the applicant still qualified. This reinforced the importance of stable ownership structures during the licensing process and showed how even seemingly administrative changes can invalidate a lottery win.

Another development came with the establishment of the Maryland Department on Social Equity, which appeared before the Legislature for the first time in December. As Maryland Matters explained, the department’s first committee appearance highlighted its leadership, its early structure and the ongoing consolidation of multiple agencies and responsibilities into one unit that will oversee Maryland’s cannabis social equity program.

 

Hemp THC Products Are Now Illegal and This Alters Consumer Behavior

One of the most important shifts in the Maryland cannabis market came through a court ruling that declared hemp-derived THC products illegal. This removed a major source of gray-market competition. Thousands of consumers who once purchased intoxicating hemp products at convenience stores and smoke shops now have fewer unregulated options.

This ruling also aligns with the conversation in Washington related to a national hemp ban that lawmakers passed during budget negotiations. If national rules take shape, Maryland will already have a structure that matches federal expectations.

Impacts for dispensaries may include:

• Increased demand for low dose edibles and beverages
  • More foot traffic from consumers returning to regulated retail
  • A cleaner separation between legal cannabis and unregulated intoxicants

This creates a helpful tailwind as Maryland’s state-licensed cannabis market approaches 2026.

 

Experience Based Cannabis: Lounges and Delivery Take a Step Forward

Maryland spent much of 2025 exploring how to support a more experience-driven cannabis culture. Two developments stood out.

Maryland’s lounge approval comes with a major restriction. Inhalation is not allowed at this time, which shapes the types of experiences operators can offer. Early concepts focus on edibles, beverages and community-oriented events.

Delivery legislation also reappeared on the policy agenda in 2025, although meaningful progress remained slow. Reporting from Technical.ly highlighted challenges related to permitting, municipal approval and implementation, especially for smaller operators. These discussions show that delivery could eventually expand consumer access, but the Maryland cannabis market still needs a clear and workable framework before retailers can rely on it as a consistent service channel.

 

Micro-Grows and Local Brands: Authenticity Gains Strength

Another milestone arrived when Wicomico County approved Maryland’s first micro-grow license. It’s a sign that the market is opening the door for small format cultivators and regionally focused brands.

As more micro-grows come online, the Maryland cannabis market will likely see:

• More diverse genetics
  • Limited batch flower that appeals to connoisseurs
  • Stronger ties between dispensaries and local producers
  • New storytelling opportunities around provenance and quality

Small batch products often create excitement among consumers who want something unique. Retailers who feature these producers can differentiate their menus and build stronger community presence.

 

How Mosaic Supports Dispensaries in a Changing Maryland Cannabis Market

As the Maryland cannabis market shifts from rapid expansion into steady maturation, dispensaries benefit from tools that help them stay organized, understand their customers and operate efficiently. Mosaic supports retailers in several key areas that align with Maryland’s current environment.

Clear Visibility Into Sales and Customer Behavior

Understanding what resonates with customers is essential in a market that is still finding its long-term rhythm. Mosaic highlights real-time sales patterns, product movement and returning shopper behavior so dispensaries can spot trends early and adjust quickly. These insights help teams recognize where demand is growing, which SKUs are carrying momentum and how their decisions influence the customer experience.

Loyalty and Retention That Strengthen Customer Relationships

Strong customer relationships often carry dispensaries through periods of slower growth. Mosaic creates space for those relationships to deepen through rewards, personalized engagement and repeat-visit incentives that feel natural and easy for shoppers. Many Maryland consumers are navigating the regulated market for the first time, and these tools help retailers welcome them in, keep them informed and encourage them to come back.

Inventory and Operational Support for a Structured Regulatory Climate

As Maryland’s oversight becomes more defined, operators benefit from systems that make day-to-day management smoother. Mosaic brings inventory, product data and reporting together in a way that reduces friction across the business. Teams gain clarity, stay organized and maintain accurate records without spending extra time digging through multiple dashboards or spreadsheets.

Support for Delivery and Emerging Access Models

Delivery may not be fully available yet, but the conversation is moving, and retailers want to be ready the moment the framework is in place. Mosaic equips dispensaries with online ordering, integrated menus and customer communication tools that make adopting delivery far more approachable. When Maryland finalizes its guidelines, retailers using Mosaic can move quickly and meet customers who prefer to shop from home.

 

Why 2026 Offers New Stability for Maryland Dispensaries

The Maryland cannabis market is settling into a new rhythm as 2026 approaches. Growth may not look as dramatic as the early rollout years, yet the underlying structure is improving. Regulators are offering clearer direction. Unregulated products are less present. Consumers remain active and curious. New operators and local brands are adding fresh energy to the landscape.

This kind of stability gives dispensaries room to plan for the long term. Retailers that understand the pace of the market can build meaningful customer relationships and create stronger operational systems. Mosaic supports that work with tools that make it easier to stay organized, communicate with customers and respond to emerging trends. With the right strategy, 2026 can be a year of steady, sustainable progress for Maryland operators.