Big Sky, Big Opportunity:
Business Growth Insights for Montana’s Cannabis Market
The crisp scent of pine mingles with earthy terpenes as customers trickle into a sunlit dispensary in Missoula, locals with loyalty punch cards and tourists seeking a taste of Montana-grown flower.
A budtender in a flannel shirt chats with a rancher about the body feel of a Bubba Kush eighth, while a digital menu above updates with fresh drops from Flathead Valley farms and solventless hash from Bozeman labs. This is the heartbeat of Montana’s cannabis scene, rooted in rugged independence, shaped by local pride, and quietly growing into one of the most promising markets in the Mountain West.
Montana’s Cannabis Market: Strong Roots, Rapid Growth
Montana legalized adult-use cannabis in 2020, with recreational sales launching in January 2022. Since then, the industry has grown steadily, with more than $400 million in cumulative recreational cannabis sales as of early 2025. Montana’s cannabis market is driven by local operators, craft cultivation, and a customer base that values quality, simplicity, and transparency.
Montana's approach has fostered a competitive market with broad access, especially in rural areas.
With over 450 licensed dispensaries currently operating across the state and sales expected to surpass $305 million in 2025. This means Montana has ~43.7 legal shops per 100k residents, the highest dispensary density in the United States, reflecting its early adoption and robust implementation of cannabis legalization. However, the state has explored capping the number of licenses issued until 2027.
Montana’s cannabis industry is showing signs of sustainable growth, especially in rural economies. As access expands and consumer demand rises, this frontier market is beginning to mature in exciting ways.
Fueling Growth in Montana’s Cannabis Ecosystem
Montana may have fewer players than coastal markets, but it offers tremendous potential for those ready to invest in smart growth. Whether you're a cultivator looking to upgrade greenhouse infrastructure, a manufacturer needing equipment to scale production, or a dispensary expanding into underserved counties, one thing is clear: capital access is critical.
Operators in Montana need financing solutions built for cannabis—flexible, fast, and designed to accommodate state-specific compliance and market realities. From working capital for expansion to inventory financing and buy now, pay later options, access to the right financial products is the difference between staying small and scaling up.
A Fast-Rising Market with Room to Expand
Montana’s cannabis sales exceeded $306 million in 2023, with monthly averages near $25 million in 2024—a number that continues to rise. The Montana Department of Revenue projects year-over-year growth of 10–15% in 2025, fueled by strong adult-use sales and seasonal tourism traffic. In cities like Billings, Helena, and Kalispell, new dispensaries are drawing loyal customers with locally grown flower, small-batch edibles, and solventless concentrates.
Despite being a relatively small market, Montana punches above its weight in terms of product innovation and community impact. With fewer regulatory hurdles than neighboring states and a relatively pro-business licensing system, Montana provides a compelling environment for entrepreneurs and multi-state operators alike.
Regulatory Landscape: Consistency Over Complexity
Montana’s Department of Revenue oversees the Cannabis Control Division, which has established a straightforward framework for licensing and compliance. Unlike more bureaucratic states, Montana allows vertically integrated operations and has streamlined the application process. Although the state does not currently have social equity licensing set-asides, it does prioritize local ownership and community reinvestment.
Montana caps the number of licenses but allows existing operators to expand.
As of May 6, 2025 Montana Senate Bill 27 (SB 27), which seeks to revise the state’s marijuana laws, passed the Senate, the House and has been transmitted to Gov. Greg Gianforte (R) for consideration, Gianforte has not publicly stated whether he intends to sign the bill. SB 27 includes key provisions extending the current moratorium on issuing new cannabis business licenses until July 1, 2027, requires any license applications during the moratorium be directly tied to existing licensed premises and authorizes acceptance of new license applications starting July 1, 2027.
Local opt-outs remain a consideration, with some counties prohibiting cannabis sales but overall, the regulatory climate supports responsible growth and market clarity.
Consumer Demand is Growing in the 406, Especially in Rural Markets
The entire state has one area code (406), and Montana’s population may be under 1.2 million, but cannabis sales per capita are among the highest in the country. In 2024, the average monthly cannabis spend per adult-use consumer was over $100—driven by loyalty, repeat customers, and limited competition from the illicit market.
Local tourism boosts seasonal demand, particularly near ski towns and national parks.
The most popular products? Flower and edibles still lead, but solventless concentrates and tinctures are gaining traction with older consumers and medical patients. Montanans value transparency, clean sourcing, and a connection to local growers—making craft brands well-positioned for long-term loyalty.
Tax Revenue and Economic Impact
Montana levies a 20% tax on adult-use cannabis sales, with funds allocated to substance abuse treatment, environmental conservation, and veteran services. In FY 2024, the state collected over $53 million in cannabis tax revenue, with projections climbing to $60 million in 2025. As a result, cannabis has become a key contributor to the state budget without burdening existing taxpayers.
Cannabis business operators are also creating jobs, revitalizing downtowns, and supporting agriculture across the state. From Butte to Bigfork, weed businesses are proving they can bring real economic value to their communities.
Challenges Ahead—and Opportunities for the Prepared
Like any emerging market, Montana faces its share of challenges: limited access to traditional banking, competition from out-of-state brands, and consumer education gaps. But the upside is substantial. Montana’s marijuana operators are resilient, community-minded, and committed to long-term growth.
With the right financial partner, they can scale faster, build smarter, and strengthen their position in a market that values grit, quality, and independence.
FundCanna partners with over 600 clients, in 43 states, across every vertical in the cannabis supply chain and we’ve deployed over $200 million to them to foster real business growth; FundCanna clients increase their revenue by an average of 60% within a year of working with us.
Whether you’re in Missoula or The Flathead, FundCanna can help you fuel your next phase of growth in Montana’s cannabis market.
Need capital to grow In Montana? Let’s talk. Contact FundCanna 1-844-420-3536
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