Maryland launched its medical cannabis program in 2018 and transitioned to adult use in 2024 as a limited-license state. Currently, there are 108 active dispensaries, with additional operators expected to come online following a March 2024 lottery that awarded conditional licenses to social equity entrepreneurs. However, these licensees still need to clear a vetting process and satisfy build-out, security, and local zoning requirements. As a result, many social equity operators remain in pre-operational or early build-out stages as of 2025 and 2026, making it still unclear how many will reach market.

According to Headset, Maryland generated an average of $96 million in monthly sales in 2025. Over the past year, the market has demonstrated resilience, with year-over-year growth rates consistently positive. Growth peaked at over 6 percent in mid-2025 and remained at 1.3 percent year-over-year in January 2026. While month-to-month fluctuations reflect seasonality, promotional cycles, and evolving competitive dynamics, the broader trajectory suggests a market transitioning from early expansion to measured stabilization.

Headset also reports that pricing in Maryland remains higher than in many mature cannabis states, with the average item price at $28.00 in January 2026. Elevated pricing reflects strong consumer demand, limited license supply constraints, and a product mix skewed toward premium offerings. Notably, unit sales have remained robust despite these higher price points, signaling that Maryland consumers are willing to pay for quality, brand differentiation, and curated retail experiences. The pricing environment also suggests that, while significant price compression is present, it has not yet reached levels seen in more saturated Western markets.

In an interview, Chase Lessman, Vice President of Sales at Culta, described the company’s position within this developing ecosystem. Culta is one of three locally owned, Maryland-based vertically integrated operators that launched in the medical era and later expanded into adult-use. “Adult use occupies a higher percentage of sales than medical, but that is typical of a growing marketplace,” Lessman said, noting that the medical channel remains important for industry growth.

Culta recently appointed cannabis industry veteran Joseph Andreae as CEO. Andreae previously held leadership roles at Story Cannabis, Glass House Brands, and NorCal Cannabis, bringing operational scale experience from highly competitive markets. Culta currently operates 35,000 square feet of greenhouse cultivation and six acres of outdoor grow, giving it flexibility across production tiers and cost structures.

The Competitive Landscape

Maryland’s competitive dynamics reflect a familiar national pattern. In several states, smaller craft cultivators struggle to compete with multi-state operators that control significant canopy and distribution channels. Distillate-based products remain a major category for value-oriented consumers, allowing larger operators with scale efficiencies to capture substantial market share.

Lessman estimates that multi-state operators control roughly 50 percent of Maryland dispensary licenses. Vertical ownership structures can make it difficult for independent brands to secure shelf space when retailers prioritize internal supply chains and reciprocal wholesale relationships. However, wholesale data from BDSA indicates that Maryland-based operators such as SunMed and Curio Wellness rank among the top wholesale suppliers, followed by national operators.

“As an independent Maryland-owned operator, we do not have access to the same capital flows that MSOs can deploy across multiple states,” Lessman said. “We compete on brand strength, consumer relationships, and the quality of our product. We position ourselves as a premium brand while also offering price accessible products to remain competitive,” says Lessman.

That balance between premium positioning and accessible pricing has become increasingly important as price compression begins to narrow the gap between value and top-tier products. Lessman anticipates that established out-of-state brands may enter the market more aggressively once the five-year moratorium on license transfers expires around 2028, potentially triggering consolidation and acquisition activity.

Despite strong, regulated sales performance, some industry reports estimate that the illicit market still controls approximately 51 percent of total cannabis consumption in Maryland. This makes competitive pricing, lower taxation, reduced compliance burdens, and consistent regulatory enforcement essential for shifting consumers toward the legal channel and driving market growth.

Product Trends and Consumer Evolution

Flower currently commands approximately 60 percent of Maryland’s market share, slightly higher than in many other adult-use states where alternative formats have gained more traction. Vape cartridges and edibles trail behind but represent areas of potential growth.

Lessman believes demographic shifts may influence future category performance. “Gen Z is increasingly influential and more wellness-focused,” he said. “That could make smoking less desirable and drive growth in vapes and edibles.” If this trend accelerates, Maryland could see a gradual redistribution of category share toward inhalable alternatives and ingestible formats that align with discretion and perceived wellness benefits.

Solventless products are also gaining traction as the market matures and consumer sophistication increases. Lessman noted growing interest in rosin and other solventless concentrates as education improves and price gaps narrow. “As premium pricing compresses, I think you will start to see consumers moving from live resin to rosin as it becomes more accessible,” he said. Culta is currently one of only a few brands in the state offering solventless vape products, giving it an edge with early adopters in this segment.

Operational and Expansion Challenges

Lessman estimates that approximately 50 percent of statewide revenue is generated by the top 30 dispensaries. High-performing retailers are facing logistical constraints tied to vault space and inventory capacity. Expanding vault infrastructure requires state permits, security upgrades, camera installations, and strict adherence to building material specifications, slowing expansion even for strong operators.

As in other states, inventory management and SKU rationalization remain complex, as operators must navigate shifting consumer preferences while managing batch tracking, packaging dates, regulatory reporting, and supply chain coordination. With only about 25 cultivators supplying the market, product differentiation remains limited, making it more challenging for retailers to attract and retain customers.

“We are curating our menu carefully to identify best sellers and optimize shelf space,” Lessman explained. “There is not a ton of diversification yet, which makes it challenging.”

Vertical integration provides Culta with margin flexibility across cultivation, processing, and retail segments. By adjusting internal pricing strategies, the company can offset compression in one area of the supply chain with performance in another. “Being vertically integrated allows us to balance margin across segments and tighten certain areas to offset pressure elsewhere,” Lessman said.

Looking ahead, Culta’s strategy centers on deepening its position within Maryland while preparing for potential expansion opportunities when the license transfer moratorium expires in 2028. Lessman also pointed to federal rescheduling as a development that could reshape capital markets access, taxation, and competitive dynamics nationwide. Any shift at the federal level would influence how operators evaluate new state entry, capital allocation, and long-term growth strategies.

For Maryland operators like Culta, the next phase of growth is not based on rapid expansion but rather on operational efficiency, brand equity, and the ability to adapt as the market evolves and matures.

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