BISBEE, Ariz. (KGUN) — November will mark five years since Arizona voters approved Proposition 207, legalizing recreational marijuana for adults and ushering in a new regulatory era for the state.
As the anniversary approaches, the cannabis industry in Arizona is showing signs of contraction. Despite steady demand, overall marijuana sales have fallen each year since peaking at more than $117 million in 2022.
This year saw the steepest decline yet, with revenues dropping to just over $86 million.
Against that backdrop, one of the world’s largest dispensary chains — Trulieve — is continuing to expand. The Florida-based company recently opened its 22nd Arizona dispensary in Bisbee, part of a strategy to grow into underserved rural markets.
“Bisbee is really great, we saw a great opportunity for a location there,” said Konya Lindsey, Trulieve’s executive marketing director. “What’s really great about Trulieve is how large we are. So ya I think that does sort of help our customers and patients believe in the brand.”
Industry analysts say that Trulieve’s scale may help it withstand downturns in the market that have hit smaller operators especially hard.
Statewide, combined recreational and medical marijuana sales dropped nearly 10% in 2024 to about $1.3 billion, according to Arizona Department of Revenue data. Much of that decline is tied to shrinking medical sales as more patients shift to adult-use purchases.
For Trulieve, rural expansion offers another path to growth. Prior to the Bisbee store’s debut, the nearest dispensary serving southern Cochise County was in Sierra Vista — also a Trulieve shop.
Lindsey said the new location will help fill a gap in access for residents. “We took advantage of being able to serve that specific community and be able to expand our presence in southern Cochise County,” she said.
Under Prop. 207, marijuana sales remain a significant contributor to Arizona’s tax base. Recreational purchases are subject to both the standard transaction privilege tax and an additional 16% excise tax, revenue that supports public safety, health programs and community colleges.
As the industry recalibrates, Trulieve’s investment in rural Arizona highlights how larger operators may navigate a more challenging cannabis marketplace while still finding room to grow.
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Eddie Celaya is a multimedia journalist at KGUN 9. Born in Tucson and raised in the Phoenix area, Eddie is a life-long Arizonan and graduate of the University of Arizona who loves the desert and mountains and hates the cold. Previously, Eddie worked in print media at the Arizona Daily Star. Share your story ideas with Eddie at edward.celaya@kgun9.com, or by connecting on Facebook or Instagram.
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