In just four years, retailers have surpassed $1 billion in total sales, driven largely by booming adult use demand that has more than compensated for a steep drop in medical purchases.
Data from the Montana Department of Revenue shows that from early 2022 through the end of 2025, combined monthly sales of medical and recreational cannabis climbed to an average of $27.3 million, marking a 13 percent increase overall. Beneath that growth, however, is a major shift in consumer behavior. Medical marijuana sales have fallen sharply, dropping by more than 70 percent during the same period.
By 2025, the market had reached $327 million in annual sales, with adult use accounting for roughly 90 percent of that total. That figure represents an increase from about $304 million in 2022, when medical marijuana still held a much larger share. On a per person basis, sales now average around $287, highlighting just how significant cannabis has become to the state’s economy. Tax revenue has followed suit, bringing in nearly $60 million last year alone.
The contrast with earlier years is striking. When voters approved legalization in 2020 and sales officially began in select counties in 2022, medical marijuana made up about 40 percent of the market. Today, it accounts for only around 10 percent. While medical cannabis has been legal in Montana since 2004 for registered patients, its role in the broader marketplace has steadily diminished.
Sales patterns over time reveal predictable seasonal trends, with stronger numbers during the summer months and slight slowdowns in winter. Early in 2022, recreational sales steadily climbed, reaching close to $20 million per month by the end of the year. Meanwhile, medical sales moved in the opposite direction, falling from over $10 million in January to under $6 million by December.
Tax policy has played a major role in shaping the market. Medical marijuana is taxed at just 4 percent, while recreational products carry a 20 percent tax rate. Despite the higher tax, adult use sales generate far more revenue due to their sheer volume. Between 2022 and 2025, total cannabis tax revenue increased by 44 percent, reflecting the dominance of the recreational side of the market.
Over the four year period, Montana collected $217 million in cannabis taxes. The vast majority, about $207 million, came from adult use purchases, while medical marijuana contributed less than $10 million.
Even so, the line between medical and recreational use is not always clear. Some consumers may still be purchasing cannabis for health related reasons without registering as medical patients. Montana policy lobbyist Kate Cholewa has pointed out that cost and privacy often factor into these decisions. For people who use smaller amounts, the expense and process of obtaining a medical card may not feel worthwhile, even if it offers a lower tax rate.
The result is a cannabis market that looks entirely different from where it began just a few years ago, shaped by shifting consumer preferences, tax structures, and the growing normalization of adult use.
