What percent of dispensaries fail?

While there isn’t a specific statistic for dispensary failure rates, we can infer some information from the broader cannabis industry data:

  1. Only 27.3% of U.S. cannabis businesses are profitable, compared to 65.3% of all small businesses in the U.S. in 2024. This suggests a high rate of struggling or failing cannabis businesses.
  2. The cannabis industry faces similar challenges to other small businesses, where approximately 70% fail within the first 10 years.
  3. The cannabis industry is experiencing significant consolidation, with larger companies buying up smaller operators. This trend often results from smaller businesses struggling to remain profitable.
  4. Experts predict that 2025 will bring “another wave of mergers and acquisitions,” with larger operators expanding their portfolios through distressed assets. This indicates that many smaller dispensaries may be failing or close to failure.

 

Given these factors, it’s likely that the failure rate for dispensaries is higher than the average small business failure rate of 70% over 10 years. However, without a specific statistic for dispensaries, we can’t provide an exact percentage.

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