Ohio Cannabis News Update – May 2025

The Ohio cannabis industry entered 2025 with momentum—but that energy is being eroded by poor legislation, inflated pricing, and an unregulated flood of hemp-derived THC products. Meanwhile, Michigan’s market continues to surge, offering a clear picture of what’s possible when regulation supports growth rather than stifling it.

In this update, we break down pricing disparities, the latest legislative threats to adult-use access, concerns about product regulation, and how these issues are reshaping Ohio cannabis marketing strategy across dispensaries, processors, and cultivators.

Ohio Cannabis vs. Michigan: A Tale of Two Markets

Let’s start with the numbers. Michigan just passed $10 billion in total adult-use cannabis sales since legalization. In contrast, Ohio has generated less than $300 million in adult-use revenue less than 10% of its northern neighbor.

That’s not a gap—it’s a canyon. And pricing plays a major role.

Ohioans currently pay over $210 per ounce on average. Michigan consumers? Closer to $80. That price differential is pushing thousands of buyers across state lines. Why? Because they have a lot more product than Ohio.

Cannabis Cultivators, Ohio - 37; Michigan - 1,235.

Cannabis Dispensaries, Ohio - 123; Michigan - over 1000.

Tons of Ohio consumers are crossing the boarder and speaking with their wallets.

Even with early growth (a 103% increase in Ohio cannabis sales year over year), price is the most common barrier to consumer conversion. Retailers like Buckeye Relief and Klutch Cannabis acknowledge that 10–15% of shoppers are walking away without buying due to cost.

The difference in strategy is obvious: Michigan fostered competition and volume. Ohio is doing the opposite.

Legislative Threats: Senate Bill 56 and the Undermining of Voter Intent

Despite a clear vote in favor of adult-use legalization, Ohio’s conservative lawmakers are now pushing to undercut the framework established by Issue 2.

Senate Bill 56 proposes several changes that would fundamentally restrict market access:

• Home grow limits reduced from 12 to 6 plants per household

• THC limits on extracts reduced from 90% to 70%

• Excise tax raised from 10% to 15%, plus 5.75% state and additional local sales tax

• License caps imposed statewide, limited to 350 dispensaries

• Revenue reallocations that eliminate funds for local communities and social equity initiatives

Instead of investing in the regulated Ohio cannabis industry, this proposal would funnel revenue straight to the general fund. This not only strips cities and equity programs of promised funding but also discourages community support for dispensaries.

Lawmakers claim this protects public health. In reality, it signals to multistate operators (MSOs) and investors that Ohio cannabis legislation is unpredictable and politically fragile.

Some national operators are already reducing or canceling expansion plans in Ohio. The market is being seen as a short-term play, not a long-term bet.

Unregulated Competition: The Rise of Delta-8, THCa, and Other Hemp-Derived THC

While licensed cannabis operators follow every rule, another market is thriving—completely outside of Ohio’s regulatory oversight.

Delta-8, Delta-9, THCa, and similar compounds derived from hemp are legally sold in gas stations, vape shops, online stores, and convenience retailers throughout the state. These products are:

• Not age-restricted in many cases

• Untested for contaminants or potency

• Widely accessible across Ohio counties

• Tax-free and untraceable

Consumers don't always know the difference. And many don't care. With products labeled “THC” and sold in colorful packaging at half the price, Ohio cannabis retailers are losing customers to unregulated sellers every day.

Despite growing concern from both public health experts and cannabis professionals, Ohio’s legislature has been slow to act. As of May 2025, no effective regulation exists for intoxicating hemp-derived products.

Tariff Impacts on Hardware and Non-Flower SKUs

Ohio-grown cannabis flower is insulated from international trade shocks due to in-state production mandates. However, vaporizer cartridges, batteries, and some packaging components are not.

With rising tariffs on Chinese imports, Ohio processors and vape brands are already feeling the squeeze. These added costs are pushing up retail prices at a time when the market can least afford it. Hardware SKUs may be the most impacted segment in the coming months.

Processors heavily reliant on disposables or branded pen devices should expect continued volatility. Alternative sourcing, local manufacturing partners, and SKU diversification should now be part of every operator’s strategy.

Ohio Cannabis Marketing: Navigating a Tougher Sales Environment

Whether you're a dispensary, a processor, or a vertically integrated operation, the reality is clear: consumers are more price-sensitive, less loyal, and often unaware of the regulated options available.

That means your cannabis marketing strategy must be aggressive, transparent, and locally focused.

Embrace Local SEO and Google Visibility

Advertising restrictions limit your exposure, so you need to win where you can—Google Maps, local search, and directory listings. Your Google Business Profile must be up to date, fully optimized, and reviewed consistently.

Check out: Cleveland’s Ultimate Guide to Local SEO for Cannabis Dispensaries

Build Sales Processes for Your Processor or Cultivator Brand

If you’re a cannabis processor or cultivator trying to sell into Ohio dispensaries, you need a proactive B2B sales engine. This includes:

• Consistent outreach

• Sample drop coordination

• Education-based email flows

• Competitive pricing conversations

This guide explains how to build a real process: How to Build Your Ohio Cannabis Processor Sales Process

Speak Directly to the Consumer with Clarity

With advertising restrictions limiting language (you can’t say “dank,” “haze,” or promote discounts directly), owned channels matter more than ever. That means:

• SMS alerts

• Branded email newsletters

• QR codes linking to menu promos

• Educational blog content

See how to navigate these rules: What You Need to Know About Marketing Cannabis in Ohio

Compete on Experience, Not Just Price

Yes, Michigan may beat you on price. So build value in other ways. Train staff. Improve store navigation. Build loyalty programs. Host educational events. Capture reviews.

Cannabis marketing in Ohio isn't just about driving traffic—it’s about converting it.