On November 6, 2012, Washington State voters passed Initiative 502 (I-502). The initiative makes it legal for businesses holding the appropriate cannabis license(s) to produce, process, or make retail sales of cannabis for medical and recreational uses. It is not allowed to hold a producer/processor and retailer license.

Effective April 18, 2019, all products produced under chapter 246-70 WAC are required to be tested for heavy metals and no longer required to include “Not tested for heavy metals” on the label.

In 2014, average monthly sales were $10.8 million. By 2015 average monthly sales doubled to $21.6 million. This then increased almost three-fold in 2016 to $57.6 million and to nearly $80 million in 2017, with strong demand continue in 2018 and 2019 with about $90 million a month and in 2020 and 2021 with $117.6 and $122.0 million a month. In 2022 and 2023, average monthly sales declined to around $106 million per month.

While all categories of cannabis products enjoyed healthy growth, alternative methods of consumption outpaced traditional flower sales. 33.7% of Washington cannabis sales were concentrates with vapor pens, 10.2% were edibles, 15.3% were pre-rolled marijuana cigarettes, and 5.1% were beverages and other products, with dried flower accounting for about 35.7%.

The total retail sales in Washington cannabis market hit $1 billion in 2018, reached $1.1 billion in 2019 and totaled $1.4 billion in 2020, 100% increase over 2016 ($691.3 million). In calendar year 2021 (January-December), cannabis sales were $1,464 million. In 2022, retail cannabis sales decreased by 12.5% to approximately $1,294 million, while cannabis sales remained relatively stable in 2023 at an estimated $1,240 million.

There were 45 retail title certificate holders and 1,750 active cannabis licenses, including 854 producer/processor licenses, 476 retailer licenses, 167 producer licenses, 225 processor licenses, 14 cooperative licenses, 2 research and 12 transportation licenses in 2023.

Per RCW 69.50.535 and WAC 314-55-089, all retail licensees are required to remit to the Washington State Liquor and Cannabis Board (WSLCB) an excise tax of 37% on all taxable sales of marijuana, marijuana concentrates, useable marijuana, and marijuana-infused products.

Washington state collected $362.0 million in cannabis excise taxes in the fiscal year 2018 (ended June 2018), $387.6 million in the fiscal year 2019 (ended June 2019), $464.9 million in the fiscal year 2020 (ended June 2020), $555.4 million in the fiscal year 2021 (ended June 2021), $511.1 million in the fiscal year 2022 (ended June 2022) and $464.5 million in the fiscal year 2023 (ended June 2023) according to the most recent figures.

Washington Cannabis Market Infographics

Washington Hemp/CBD Industry