As the U.S. cannabis industry enters 2026, shifting market dynamics are reshaping how businesses operate and compete.
From licensing activity to pricing behavior, patterns that emerged in 2025 offer a clearer picture of where the regulated market is stabilizing – and where pressures are still building.
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Below are some numbers that help explain the state of the cannabis industry.
280E tax relief will greatly expand retailer profit, reinvestment
Notorious Internal Revenue Service Code Section 280E continues to strain plant-touching cannabis businesses, often erasing retailers’ profitability even in otherwise strong markets. However, President Donald Trump’s Dec. 18 executive order rescheduling marijuana promises long-awaited tax relief for cannabis businesses.
In many states, the 280E tax burden exceeds a retailer’s entire net profit, effectively
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