Booming Vermont Cannabis Sales Prove That It's Not Just for Hippies Anymore
As sales smash records, Vermont grapples with an oversaturated market, the future of its small farms, and the complex realities of normalization.
The old stereotype of a Vermont cannabis user is officially obsolete. The consumer driving Vermont’s record-breaking, nine-figure cannabis industry is no longer just a “hippy.” According to national consumer data, they are just as likely to be a professional buying an edible to ease anxiety, a retiree trying a tincture for pain management, or a young adult choosing a vape pen over a six-pack for a Saturday night.
The evidence is in the numbers. In August 2025, Vermont’s legal marijuana market hit its highest monthly total since launching in October 2022, reaching $13.64 million in taxable sales, according to reporting from The Marijuana Herald. This surge is part of a consistent upward trend. Total sales in 2024 hit $139.2 million, far exceeding the state’s initial projections, and 2025 is on pace to break that record, with sales from January to August already topping $98 million.
This “green rush” has reshaped Vermont’s economy in tangible ways. But as the market matures, it also presents Vermonters with critical new questions about the industry’s future, its impact on public health, and the very identity of the state’s “craft” cannabis vision.
A Nine-Figure Industry and Its Economic Limits
The economic boom is undeniable. According to reporting from VTDigger, the sector supports over 1,200 jobs statewide. The number of licensed retailers has ballooned, reaching 106 by July 2025. In a symbolic milestone reported by Seven Days, Vermont now has more licensed cannabis shops than it has state-run liquor stores.
This growth generates a steady stream of tax revenue. Vermont levies a 14% excise tax and a 6% sales tax on recreational cannabis. In 2024, this brought in approximately $19.7 million in excise taxes and $8.1 million in sales tax, according to reporting from WCAX.
However, anyone expecting cannabis to be a silver bullet for the state budget may be disappointed. Reporting from WCAX notes that the total cannabis revenue represents “a drop in the bucket,” accounting for less than 1% of the state’s General Fund revenues.
Where that money goes has also evolved. The sales tax portion is directed to after-school programs. The excise tax, which initially funded the regulatory system, now has a new path. Starting in July 2025, 100% of the excise tax revenue goes directly into the state’s General Fund, with 30% of it, up to $10 million, earmarked for substance misuse prevention programs.
Growing Pains: Is the ‘Green Rush’ Turning into a ‘Bust’?
Despite surging sales, the industry is facing significant growing pains. The primary challenge is market saturation. With nearly 400 licensed cultivators and over 100 retailers in a state with just over 640,000 people, the market has become “cutthroat,” according to industry entrepreneurs who spoke with Seven Days.
As more stores compete for the same customer base, prices have begun to fall. While consumer demand is growing, it has not kept pace with the rapid opening of new dispensaries. This imbalance has raised alarms, with James Pepper, chair of the Vermont Cannabis Control Board (CCB), warning that unfettered expansion could trigger a market “bust.”
In response, state regulators have tapped the brakes. In late 2024, the CCB paused the issuing of new retail licenses, followed by a similar pause on new cultivation licenses in early 2025, as reported by Seven Days. These moratoriums are intended to “freeze” the market while officials study the state’s supply-and-demand balance and prevent a catastrophic oversupply.
The Fight for Vermont’s ‘Craft’ Identity
The market saturation is hitting small producers the hardest, creating a crisis for the “craft” industry that Vermont’s legalization law was intended to foster.
According to reporting in VTDigger, many small farms and craft growers are struggling to survive. Current rules prohibit them from selling their products directly to consumers. Instead, they must sell to licensed retailers, often at steep wholesale discounts that they report are unsustainable.
This has become the central political debate for the industry. Small growers are advocating for new rules to allow direct-to-consumer sales, such as at farmers’ market-style events or on-farm stands, similar to the model used by craft breweries. The CCB has reportedly recommended creating new license types to enable these producer-to-consumer sales, an idea that has gained traction with lawmakers.
This presents Vermonters with a key determination: Should the state allow market forces to create a high-volume, low-price industry dominated by larger players, or should it intervene to protect and nurture the small, craft-focused farms that are central to the state’s agricultural identity?
The Other Side of Normalization: Public Health and Safety
As cannabis becomes a mainstream economic force, the state must also manage its public health and safety implications.
On one hand, legalization appears to be succeeding in its goal of shrinking the illicit market. According to data from VermontStateCannabis.org, arrests for both marijuana possession and sales have plummeted since legalization and the opening of retail stores, suggesting the legal, taxed market is displacing the unregulated one.
On the other hand, widespread availability brings complex public health questions.
Youth Use: The data here is nuanced. The user’s provided research from healthvermont.gov shows a very high rate of use (48%) among young adults aged 18-25. However, national data cited by the Marijuana Policy Project suggests that for high schoolers (under 18), use rates have often decreased in legal states. The theory is that regulated, ID-checking stores are a higher barrier to access for teens than illicit dealers. The Vermont Department of Health continues to warn that cannabis use can harm the developing brain, impacting memory and learning.
Impaired Driving: Driving under the influence of cannabis is illegal and dangerous. However, measuring its impact is notoriously difficult. According to the National Conference of State Legislatures, there is no agreed-upon testing standard for cannabis impairment equivalent to the .08 blood-alcohol level. While national studies cited by the University of Vermont and the Marijuana Policy Project have so far found no statistically significant increase in traffic fatalities in legal states like Colorado and Washington, this remains a critical area for public safety monitoring.
General Health: The Vermont Department of Health cautions that cannabis smoke contains many of the same toxins as tobacco smoke. It also warns that edibles pose a significant risk of accidental poisoning for children, underscoring the need for safe storage.
The Next Chapter
Vermont’s cannabis experiment is in full swing. The “hippy” stereotype has been replaced by a mainstream, multi-million dollar industry that is creating jobs and contributing tax dollars, even if it’s not a budget miracle.
Now, the real work begins. The economic boom has created a market so competitive that it threatens to consume the very small producers it was meant to support.
The decisions Vermonters and their lawmakers make next will be crucial. How can the state “right-size” the market to ensure its long-term stability? Will it embrace direct-to-consumer sales to save its craft farms? And how will it continue to balance the clear economic benefits with the vital, ongoing mission of protecting public health? The record-breaking sales figures prove the market is here to stay; the challenge now is to shape it into one that truly serves Vermont.