TUCSON, Ariz. (KGUN) — As April 20 approaches, Arizonans are gearing up to celebrate the unofficial marijuana holiday, marking five years since the state legalized recreational cannabis.
While dispensaries anticipate increased foot traffic, the cannabis industry faces shifting economic dynamics.
"4/20 always brings the best deals. It's our week, it's our day," said Alex Marts, a customer at Earth's Healing North dispensary in Tucson, 78 W River Road.
Michael Shew, the dispensary's operations manager, noted that the celebration now spans multiple days. That's in part to avoid huge crushes of customers that would often form lines hundreds of people long.
"With 4/20, we see a good influx of people the weekend prior, so 4/18, 4/19 and 20," he said.
Beyond dispensaries, events like the 4/20 Fest, an open-air event on Saturday, April 19, hosted by Tucson Foodie and Tucson Doobie, at the Whistle Stop Event Center, 127 W. 5th St., have emerged.
"It's a consumption event, so just bring your friends and hang out," said Nuri Castro, Earth's Healing's marketing lead.
However, the cannabis market has experienced a downturn.
In 2024, combined medical and recreational marijuana sales in Arizona declined to just over $1.1 billion, down from nearly $1.4 billion in both 2022 and 2023, according to the Arizona Department of Health Services.
In an earlier interview this year, Shew attributed this to changing consumer behaviors and increased competition.
"Customer behavior is changing," he said. "Within Tucson, we have seen a few dispensaries pop up over the past year."
According to Headset, an industry tracking firm, the downturn is true for the 4/20 holidays as well.
Sales on 4/19 and 4/20 peaked in 2023 at $10.1 million before falling significantly in 2024 to $7.3 million.
Despite the decline, consumers seem to be benefiting from decreased prices.
Data from Headset indicates that the average price of cannabis products in Arizona dropped from $19.92 in January 2024 to $18.37 in January 2025. "
They do have a great variety of products they can get at a great discount," Shew said.
Tax revenues from marijuana sales support various state programs. Arizona imposes a 16% excise tax on recreational marijuana sales, in addition to the standard sales tax.
One-third of excise tax revenue is allocated to community colleges, 31% to public safety, 25% to the Arizona Highway User Revenue Fund, and 10% to the justice reinvestment fund.
At Pima Community College, marijuana tax revenues constitute approximately 3% of the operating budget.
David Bea, Vice Chancellor of Finance, expressed concerns about potential fluctuations in this funding.
"If three percent goes away, it results in cuts, yes." Last year's allotment totaled nearly $6 million, supporting workforce training and development programs.
As 4/20 coincides with Easter this year, Shew anticipates large crowds, but notes they may not be as substantial as in previous years.
Nonetheless, the celebration remains a significant cultural and economic event in Arizona's evolving cannabis landscape.
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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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