Elevating in Ohio:
What Growth-Minded Operators Need to Know
in the Buckeye State
Elevating in Ohio:
What Growth-Minded Operators Need to Know
in the Buckeye State
If you’re in Ohio, you’ve witnessed a major shift in cannabis culture over the past year. After voters passed Issue 2 in November 2023, adult-use cannabis became legal, and sales kicked off in August 2024
In just eight months, the state has seen over ~$656 million in sales – with a whopping 66% ($434 million)
coming from recreational sales and 34% ($222 million) resulting from medical patient purchases.
Current Demand
Demand is undeniable with more than 100 new dispensaries to open by the end of 2025, adding to the current 124 weed shops already operating in The Buckeye State.
Consumers are exploring beyond simply high potency THC products, often making decisions with more sophisticated considerations like specific strains, alternative cannabinoids, terpene profiles, and diverse consumption methods. In the Ohio market, pre-rolls and pre-ground flower for vaporization make up a significant portion of cannabis sales.
On the industry side, Ohio's market is growing at a steady pace with established operators expanding and new players entering the space. But operators are not immune to legislative hurdles as the state considers changes in the law, including adjustments to tax rates and regulations.
Navigating Growth in a Dynamic Landscape
Savvy Ohio cannabis entrepreneurs proactively adapt to regulatory changes and position themselves for growth through strategic collaboration and remaining flexible.
Strategic Expansion Amid Regulatory Uncertainty
When something works, replicate it. Ohio operator Mavuno is simply growing their successful model by expanding their footprint.
Mavuno’s plan is to open two more dispensaries in Cleveland’s Gordon Square and South Euclid neighborhoods in summer 2025, locations chosen for their high level of economic development prospects and, of course, community engagement.
And they’ll need it, because ads are a no-go in Ohio.
Embracing Innovation and Community Engagement
Ohio’s known for extreme constraints on advertising cannabis, with prohibitions on any cannabis-related advertisements on billboards, TV, and radio.
Operators are turning to community engagement and educational initiatives to reach consumers.
Financial Planning and Compliance
Operators that seek to mitigate risk are leveraging the increased Commercial Activity Tax (CAT) exclusion threshold, which rose to $6 million in 2025.
This change exempts many medium-sized cannabis operations from CAT filing requirements, reducing tax burdens and compliance costs.
Preparing for Legislative Changes
Which often translates to watch, wait, and see – but motivated operators are taking a proactive approach closely monitoring legislative adjustments that could impact the industry.
For example, the Ohio Senate has considered increasing the current excise tax on cannabis products from 10% to 15%.
An increase would have a ripple effect across industry and consumer behavior; retails prices will rise as businesses pass along the tax to shoppers; price sensitive consumers may return to the illicit market; margins for business will shrink as they absorb part of the tax to remain competitive; and the state budget will experience a small boost in tax revenue, but only in the short term.
Operators should remain engaged in the legislative process and advocate for fair reforms for the industry.
Industry reactions will vary according to the vertical, with retailers eying discounting or innovative bundling to soften the blow, brands may shift toward value and efficiency rather than luxury or novelty, ancillary service providers may see increased churn as operators cut costs.
Consumer behavior will also vary according to how they use the plant. Unfortunately, medical users and low-income customers may be hit hardest by any tax increases, leading to an uptick in illicit purchases, home cultivations, bulk purchases, or less frequent purchases.
Ohio lit the fuse, now awaits the boom.
With more than half a billion dollars banked since its birth, the state’s cannabis industry is poised for explosive growth with momentum building for operators.
Over the next three years projected sales in the state are expected to exceed $2.3 billion by 2027 as the market matures. Major growth drivers for the Ohio cannabis industry will include regulatory clarity and expanding licensing, high demand from both urban and rural regions, increased normalization and consumer education, infrastructure investment and real estate, as well as new product form factors (i.e., beverages, wellness, edibles, etc.).
Smart industry operators are paying keen attention to industry updates, engaging with stakeholders, and prepared now to seize financial opportunities tomorrow.
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