A Turning Point for the Evergreen State
Ahhh, Washington — what a legacy we’ve built when it comes to cannabis culture. As the second state in the nation to legalize cannabis back in 2012, Washington has had over a decade to evolve, expand, and, in some ways, stabilize. Now, in 2025, we’re seeing what industry experts call “market maturity” — a phase where growth slows, prices stabilize (or drop), and competition intensifies.
Annual cannabis revenue in Washington has been declining since the pandemic, mirroring national trends. Still, compared to newer markets like New York or Connecticut, our average item price — around $11 — remains among the lowest in the nation, signaling fierce price competition and oversupply. The Washington State Department of Revenue reported that Q1 2025 sales were down about $1 million from 2021. If this trend continues, 2025 could mark the sharpest decline in legal cannabis sales to date.
Meanwhile, a 2023 study revealed that Washington producers grew roughly three times more cannabis than was sold legally that year — raising red flags about oversupply and potential product diversion. In other words, we’ve hit a critical inflection point between supply and demand — a familiar pattern seen in other mature markets like Canada.
The Market Landscape: Oversupply Meets Data Gaps
Much of Washington’s current volatility can be traced back to imbalances in production, pricing, and data transparency. Unlike most states, Washington regulates production by limiting grow space, not total yield — meaning the state doesn’t actually know how much cannabis is being produced by weight.
Since the collapse of Washington’s last traceability platform in 2017, the Central Cannabis Reporting System (CCRS) has served as the state’s main data tool. Unfortunately, the Joint Legislative Audit and Review Committee (JLARC) found that CCRS data is incomplete and unreliable. Some key gaps include:
Incomplete sales records make it impossible to determine total legal sales volume.
Limited data linkage prevents the state from connecting important metrics like THC percentages, inventory, and product details.
Unreliable wholesale weight data obscures how much cannabis is actually being grown and sold.
Without accurate data, the Liquor and Cannabis Board (LCB) struggles to enforce compliance, optimize tax revenue, or monitor diversion. The LCB plans to replace CCRS with a modern traceability system, but implementation isn’t expected until 2031 — leaving Washington with six more years of uncertainty in the meantime.
Regulation & Policy Outlook: Washington Cannabis 2026 on the Horizon
The good news? Washington lawmakers appear to recognize the need for reform — and 2026 could be a game-changing year for cannabis businesses and consumers alike.
Washington Reduce Cannabis Excise Tax Initiative (2026 ballot): This proposed measure would cut the state excise tax from 37% to 7%. Such a dramatic reduction could revive retail sales, strengthen the legal market, and relieve pressure on both consumers and the supply chain.
Senate Bill 5403 (effective Jan 1, 2026): This bill will limit the number of retail licenses per entity to five, encouraging broader participation and reducing market consolidation. More small and mid-sized retailers mean greater competition, innovation, and product diversity.
House Bill 1341 (medical tax verification): This legislation enhances oversight of the medical excise tax exemption, ensuring it’s used correctly by legitimate patients. The exemption — which removes both sales and excise tax for qualified medical purchases — is set to expire in 2029, so patients should take advantage while it lasts.
Together, these policy shifts signal a move toward fairer taxation, healthier competition, and stronger regulatory accountability — all necessary ingredients for a sustainable cannabis future.
Innovation, Education, and Industry Evolution
Beyond policy, Washington’s next cannabis evolution in 2026 will come through education and innovation. Years of over-regulation have slowed cannabis research, but new academic programs are beginning to change that narrative.
Gonzaga University has partnered with Green Flower to offer professional certificates in Cannabis Healthcare & Medicine and Cannabis Compliance & Risk Management. Similar programs are available through Seattle Central College, Tacoma Community College, and the Washington State Department of Health, helping professionals enter the cannabis workforce with scientific and compliance-driven training.
According to Max Simon, CEO of Green Flower, over 60 colleges and universities nationwide are now offering cannabis-related programs — a major step toward normalization and professionalism in the field.
However, the Washington State Academy of Sciences recently highlighted a **lack of diversity **across research and regulatory positions in cannabis. Their 2025 paper argues that this gap can “impede progress toward understanding cannabis’s effects and building equitable policies.” Expanding diversity in STEM-based cannabis programs will be crucial for developing inclusive, evidence-based industry progress.
Meanwhile, in product trends, vape cartridges remain the most stable category in Washington’s retail landscape. With their mix of convenience, technology, and consistent demand, vapes have weathered declines better than flower and concentrate categories, which have seen double-digit year-over-year drops.
What’s Next for Origins Cannabis in 2026
As the state recalibrates, Origins Cannabis is preparing for the next phase of market evolution. We’re adapting by focusing on:
Value and quality — maintaining fair pricing without compromising on the customer experience.
Education and compliance — ensuring staff and customers are informed, empowered, and confident in product transparency.
Community and innovation — supporting Washington’s cannabis legacy through collaboration, culture, and care.
Washington’s cannabis story is far from over — it’s simply entering its next chapter. 2026 may very well mark the rebirth of a smarter, more sustainable, and more balanced cannabis market.