Massachusetts is the oldest adult use market in New England. Operators have enjoyed their first-mover advantage within this limited license state. License holders are capped at 100,000 sq. ft. of cultivation and operators cannot own more than three retail licenses.

While the Cannabis Control Commission feigned strict social equity requirements, major MSOs still found their way into the market, building out the maximum three dispensaries allowed per owner. Operators need to secure Host Community Agreements and satisfy a myriad of other state and local regulatory requirements before licenses are issued, which has slowed market development.

February 2025 | In Good Health announced its acquisition of two dispensary locations from TILT Holdings for $2MM

March 2023 | MariMed completed its acquisition of Ermont

March 2022 | Agrify Corp. announced a senior secured debt facility for up to $135MM

January 2022 | 4Front Ventures acquired New England Cannabis Corporation for $50MM

September 2021 | Jushi finalized $91MM deal to acquire Nature's Remedy

September 2021 | Ayr Wellness Inc. acquired Cultivauna Inc, the owner of Levia-branded cannabis infused seltzers and water soluble tinctures

September 2021 | Cresco acquired Cultivate in a $90MM deal

June 2021 | GTI acquired Liberty Compassion

October 2020 | Curaleaf acquired Alternative Therapy Group

Smaller operators in the Bay State are facing a challenging environment due to oversupply and downward pricing pressure. These conditions have made it difficult to compete with larger MSOs who are able to achieve higher operational effeciencies. Massachusetts has a three dispensary limit and most of the major MSOs have already reached their maximum retail presence.

Though the state had a slow start to adult-use sales in late 2018, the market is now working its way towards the $2B mark. 2022 finished strong with over $1.76B in sales, 2023 saw growth of 1.8% to 1.8B in sales, and 2024 saw another 2.4% bump to $1.84B in sales. We are expecting similar growth numbers trends to persist in 2025. Keep in mind these revenue figures are growing with the backdrop of prices being slashed by more than 50% since the adult use market's inception, indicating that demand for cannabis is growing quite rapidly.

If you have an opportunity to invest in a Massachusetts operation, you won't regret it. Strong business opportunities remain in cultivation and in select retail locations, including the underserved Boston area.

If you are an SSO, bide your time, reap the annual earnings rewards, and wait until something changes on the regulatory front to allow for a monetization event.

While there is some turbulence being felt resulting from the oversaturation of retail locations, there are also many strong signs in the state. Signs point to state-wide consolidation at some point in the future. Operators should keep a close eye on developments in the state as positive and negative trends continue to play out.