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Washington, D.C.’s medical cannabis market is growing rapidly, but the pace of expansion is raising concerns about whether demand can keep up. Since January, the number of licensed dispensaries operating in the District has increased by 267 percent. Over the same period, average monthly sales per store have nearly fallen by half, according to recently released data.
The distribution of retailers across the city is uneven. Wards 1, 2, and 6 now account for 71 percent of all dispensaries, reflecting the wards’ younger demographics, higher household incomes, and dense commercial areas. Other parts of the city, particularly wards with older populations and higher unemployment, have far fewer retail options.
Tourism also plays a role in shaping the market. Ward 2 contains 67 percent of the city’s hotels, making it a hub for visitors who participate in the program. Out-of-state patients account for about 45 percent of D.C.’s total patient base, helping offset slower growth in local enrollment.
The data points to a market that is expanding at a fast pace but facing limits tied to patient demand, neighborhood demographics, and consumer behavior. Industry observers say the next phase of the market may depend on whether the patient base grows further—or whether future policy changes, such as broader adult-use sales, expand the pool of consumers.
