Montana’s marijuana market has surpassed $1 billion in total sales since the state launched adult-use legalization in 2022, with recreational purchases now overwhelmingly dominating the industry, according to new state data.
Figures released by the Montana Department of Revenue show that from January 2022 through December 2025, combined monthly marijuana sales rose about 13 percent, reaching $27.3 million. That growth has been driven almost entirely by adult-use purchases, which have more than offset a steep decline in the state’s medical marijuana market.
In 2025 alone, retailers reported $327 million in total cannabis sales, with roughly 90 percent attributed to adult-use products. That marks a notable shift from 2022, the first year of legal recreational sales, when total revenue reached about $304 million and medical marijuana still accounted for roughly one-third of purchases.
The transition reflects a broader change in consumer behavior since voters approved legalization in 2020 and sales began on January 1, 2022. While medical marijuana has been legal in Montana since 2004, its share of the market has steadily eroded—from about 40 percent in 2022 to just around 10 percent today.
Monthly trends show predictable seasonal swings, with sales typically peaking during summer months and dipping slightly in winter. Adult-use purchases climbed steadily throughout 2022, nearing $20 million per month by year’s end, while medical sales dropped sharply—from more than $10 million in January to under $6 million in December of that year. By 2025, monthly medical sales had fallen by more than 70 percent overall.
Tax policy has played a significant role in shaping the market. Medical marijuana is taxed at 4 percent, compared to a 20 percent tax on adult-use products. Despite the lower rate, declining medical participation has meant that recreational sales now generate the vast majority of revenue.
Between 2022 and 2025, Montana collected approximately $217 million in marijuana tax revenue, with about $207 million coming from adult-use sales. Annual tax collections increased by 44 percent over that period.
Industry observers say some consumers may still be using adult-use products for medical purposes. Kate Cholewa noted that cost considerations and privacy concerns can discourage patients from registering for the medical program, even if they qualify.
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