Missouri:
The Heartland's Budding Cannabis Opportunity
The legalization of adult-use cannabis in Missouri has ushered in a new era for the state’s economy, creating exciting business opportunities and introducing new challenges.
As this emerging market gains traction, businesses must navigate a rapidly evolving landscape that requires strategic foresight, operational efficiency, and strong financial backing to succeed.
And the opportunity for growth is immense. But, like no-nonsense Missourians might say, “Don’t just tell me. Show me”, so let’s dig-in to verdant cannabis industry of The Cave State, a leading market in the United States.
Current Market Landscape
Missouri voters approved adult-use cannabis in November 2022, with sales officially beginning in February 2023. Since its inception, the Show-Me State’s cannabis market has grown at an unprecedented pace. As of early 2025, the state is home to over 200 licensed dispensaries, and cumulative adult-use cannabis sales have surpassed $3.9 billion.
In 2024, cannabis retail sales exceeded $1 billion, averaging more than $90 million per month. High-performing regions include St. Louis, Kansas City, Springfield, and several rapidly growing rural and suburban areas that have embraced cannabis commerce.
Tax revenue has also been a major win for the state. Missouri applies a 6% state tax on adult-use cannabis, with local jurisdictions able to add up to 3% more. These collections are helping to fund veterans’ health care, substance abuse treatment, and public defenders, among other initiatives. Early estimates for 2025 project more than $120 million in combined cannabis-related tax revenue.
Projected Growth
Missouri’s cannabis market is on track for continued growth. Analysts project $1.6 billion in adult-use sales in 2025, with consistent expansion expected through 2027 and beyond. As public acceptance grows and new products enter the market, more Missourians are embracing legal cannabis.
Early sales numbers prove Missouri’s weed industry trajectory is one to watch. In April 2025 alone over $125.8 million in cannabis products were sold in the state, marking a 4.86% increase over April 2024 sales. The year-over-year gain signals a consistent trend toward growth in the market; further proof of Missouri’s marijuana market strength is the increase in daily sales totals, which also show a year-over-year increase of 5%.
Each month of 2025 has so far outpaced its 2024 counterpart, positioning Missouri’s cumulative cannabis sales to reach $4 billion by the end of summer. Should the current pace hold for Missouri cannabis businesses, total sales for the year will surpass the $1.6 billion sold in 2024.
Missouri Expunged
The Missouri Department of Health and Senior Services (DHSS), which oversees the state’s cannabis program, has continued to license new operators while refining its regulations and social equity framework to include automatic expungement.
The state has also taken steps to simplify licensing for microbusinesses, encouraging broader participation in the industry from individuals and communities disproportionately impacted by prior cannabis enforcement.
Challenges in the Market
Missouri’s impressively swift cannabis market growth isn’t unfolding without obstacles.
License holders have cited obstacles with local zoning, limitations with banking, and prohibitive operational startup costs as major challenges. The fast pace of market expansion has led to increased competition, price compression and tighter margins across the state.
The Gateway to the West is also contending with gray-market activity, particularly the unregulated sale of THC products through non-dispensary channels. Illicit activities threaten the integrity of the legal market by undercutting licensed operators, diminishing potential tax revenue, and potentially compromising consumer safety.
Further complicating the landscape, many financial institutions still refuse to work with cannabis businesses, leaving operators with few options when it comes to financing growth or managing cash flow.
Further complicating the landscape, many financial institutions still refuse to work with cannabis businesses, leaving operators with few options when it comes to financing growth or managing cash flow.
The Role of Flexible Financing
In this rapidly expanding and increasingly competitive environment, access to capital is crucial. Cannabis entrepreneurs in Missouri—like those in other legal states—continue to face roadblocks when seeking funding from traditional banks.
Missouri has quickly established itself as a promising and profitable cannabis market in the heart of the United States. As the industry matures, businesses that invest in strategic planning and secure the right financial partnerships will be positioned to weather challenges and lead in this high-growth environment.
FundCanna stands out as a strategic partner for Missouri cannabis businesses seeking growth. 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.
With strategic financial support from FundCanna, cannabis operators can scale, compete, and thrive in this expanding market.
Need capital to grow in Missouri? Let’s talk.
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