CANNABIS MARKET UPDATE SEPTEMBER 2025
U.S. Market expected to grow from $44 billion in 2025
to $76 billion by 2030 at a CAGR of 11.51%

Published by: StockWatchIndex Editorial Team
Rainer Poertner, Chief Analyst

As of August 2025, the cannabis industry seemed firmly in a growth stage, characterized by expanding market sizes, ongoing consolidation, increasing legalization at state and international levels, and robust innovation in products and technology. While August showed a strong increase in share prices, the last week of September showed a light downtrend of 3% in our portfolio again. Nevertheless, market values are expected to grow from $44.30 billion in 2025 to $76.39 billion by 2030, growing at a compound annual growth rate (CAGR) of 11.51%.

While the White House recently posted a video in support of cannabis and its rescheduling, the industry still faces headwinds from federal regulatory delays, a looming debt crisis, and market saturation in mature regions. This positions the sector as transitional, poised for maturity but still navigating uncertainties that could accelerate or hinder progress.

However, the tailwinds created by the White House gave a sharp boost to marijuana stocks the day of the post, including an 18% jump for Canopy Growth (NASDAQ: CGC), a 25% upward move by Aurora Cannabis (NASDAQ: ACB), and a 15% increase for Cronos Group (NASDAQ: CRON), all big players in our SWI portfolio. One of the biggest gains was for Tilray Brands (NASDAQ: TLRY), which rose 42% on the news. While Canopy Growth has given back some of its gains during September, Tilray and Aurora continued to show positive momentum in the last week of September.

The SWI Cannabis Portfolio Top Performers

While this announcement has provided some tailwind for cannabis stocks in August and the last few days of September, the overall performance in September was still 3% lower than in August.

Market Trends

• Cannabis Sales: The US cannabis industry saw $31.4 billion in sales in 2024, projected to reach $44 billion by the end of 2025.

• Price Compression: Average retail cannabis prices have dropped 32% since 2021, squeezing profit margins and forcing dispensaries to adapt.

• Mergers and Acquisitions: The cannabis industry is expected to see a wave of mergers and acquisitions in 2025, accelerating in 2026, driven by rescheduling hearings and market consolidation.

Are Cannabis ETFs a better Solution?

For investors who have a strong risk tolerance, a marijuana-themed exchange-traded fund could be a better option than individual stocks. The top-performing names this week include the following:

• Amplify Seymour Cannabis ETF (NYSEMKT: CNBS) and the Amplify Alternative Harvest ETF (NYSEMKT: MJ): These are operated by the same company. Alternative Harvest’s biggest holding is Seymour Cannabis, which accounts for 48% of the fund. The largest individual company Alternative Harvest holds is Tilray Brands, which makes up 18% of the fund and is one of the best-performing cannabis stocks this week.

• AdvisorShares Pure US Cannabis ETF (NYSEMKT: MSOS): This is marketed as the first actively managed U.S.-listed ETF with cannabis exposure from U.S. companies, but much of this ETF is made up total return swaps. That means it pays a fee to a third party, such as a bank, to invest in a company and also pays a fee to receive the gains or absorb the losses. The fund is up 11.9% this week.

• AdvisorShares Pure Cannabis ETF (NYSEMKT: YOLO): This ETF includes what you would expect when you think about cannabis stocks, but its biggest holding (nearly 40%) is AdvisorShares Pure US Cannabis. This fund is up 11% in the last week.

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Dynamic Market Concepts (DMC) or its affiliate Stockwatchindex (SWI) are marketing publiations with a team of writers and analysts that publish articles and research reports about subjects of interest for the editorial teams and reflect the writers’ opinions. Some of the published information has been provided by the companies covered, generated by publicly available sources, or by what the team deems reliable third-party entities. This is not meant as investment advice or stock solicitation, and the author is not responsible for any errors, mistakes, or shortcomings that may be occasioned when publishing the information in this publication and accepts no liability for any mistakes.