Illinois adult-use cannabis brought in $1.5 billion in 2024, a sharp 13% fall from the year before, even though customers bought a record 58 million items, state numbers show. The main reason? Prices have crashed more than 60% since legal sales began five years ago.
Customers now pay around $167 per ounce of flower, down from over $400 when the market opened in January 2020. The flood of new growers and fierce competition finally delivered the low prices many voters hoped for when they said yes to legalization.
Illinois added dozens of new cultivation centers and craft grow licenses in the last two years. All that extra weed hit dispensary shelves at once.
State regulators report the total weight of flower sold jumped 25% in 2024 while the dollar total fell. Shoppers clearly love the deals.
“People are buying way more because it finally feels affordable,” said one Chicago dispensary manager who asked not to be named. “An eighth that cost $65 in 2020 now sells for $25 to $35 on a good day.”
Michigan Sees the Same Story Next Door
The same pattern plays out across the border. Michigan shops moved 260,000 more pounds of cannabis in 2025 than the year before, yet total sales slipped $113 million to $3.17 billion.
Average price per gram in Michigan now hovers around $6, half of what customers paid two years ago. Both states show the classic sign of a market that has shifted from shortage to surplus.
Tax Money Still Rolls In, But Growth Stops
Illinois still collected more than $400 million in cannabis tax revenue last year. Cities and towns that host dispensaries also took in tens of millions from local sales taxes.
The big change is the end of sky-high growth. After years of 50% to 100% jumps, state officials now plan budgets with flat or slightly lower cannabis cash.
Shoppers Win, Some Businesses Struggle
Long lines and empty shelves feel like ancient history. Customers walk in and choose from dozens of brands at prices closer to gray-market days.
Not every company cheers. Smaller growers who paid top dollar for licenses now fight to stay profitable when wholesale flower sells for $1,000 a pound or less.
A few stores have already closed in high-rent areas where foot traffic never lived up to early promises.
Here are the year-over-year changes in key numbers for Illinois:
- Total sales: $1.79 billion (2023) → $1.5 billion (2024)
- Items sold: 46 million (2023) → 58 million (2024)
- Average price per ounce of flower: $210 (2023) → $167 (2024)
- Tax revenue to state: $417 million (2023) → $402 million (2024)
What Happens Next
Industry watchers expect prices to level off soon. Many growers say current rates barely cover costs plus Illinois 34% total tax load at wholesale and retail.
Some predict a wave of mergers as bigger multi-state companies buy struggling local operators at discount prices.
Lawmakers also watch closely. Lower revenue could slow talks about new social-equity licenses or big investments in communities hit hardest by the war on drugs.
For everyday buyers, the new reality feels simple. Legal weed finally costs less than street prices in many neighborhoods, and the shelves stay full.
The grand experiment that started with $500 ounces and two-hour lines has settled into something closer to a normal consumer market, complete with weekend sales and budget brands.
Maria Garcia is an award-winning author who excels in creating engaging cannabis-centric articles that captivate audiences. Her versatile writing style allows her to cover a wide range of topics within the cannabis space, from advocacy and social justice to product reviews and lifestyle features. Maria’s dedication to promoting education and awareness about cannabis shines through in her thoughtfully curated content that resonates with both seasoned enthusiasts and newcomers alike.
