Cannabis Business in Montana

Montana’s cannabis industry has seen significant growth, driven by both medical and adult-use sales. In 2023, the state generated over $319 million in cannabis sales, with $258 million coming from adult-use and $61 million from medical marijuana. The Cannabis Control Division oversees this expanding market, ensuring compliance and regulating the businesses involved in cultivation, manufacturing, and sales.

As of January 1, 2022, Montana permitted medical marijuana license holders in "green" counties to transition to serving adult-use consumers. These "green" counties, where the majority of voters supported Initiative 190 in November 2020, allow adult-use sales. In contrast, "red" counties, where voters opposed the initiative, prohibit adult-use marijuana sales. The state’s hybrid system allows counties to adopt regulations tailored to their local communities.

Plant-Touching Cannabis Licenses in Montana

Montana’s cannabis market offers a range of plant-touching licenses for businesses that handle cannabis production and sales. The Cannabis Control Division issues these licenses, along with worker permits required for employees in the industry. The licenses available include:

• Cultivator Licenses – Permitting the growth of cannabis for both medical and adult-use markets, with 13 different canopy licenses available based on facility size.
• Manufacturer Licenses – Allowing the production of cannabis products, including concentrates, edibles, and oils.
• Dispensary Licenses – Enabling businesses to sell cannabis directly to consumers.
• Transporter Licenses – Authorizing the transportation of cannabis products between facilities.
• Testing Lab Licenses – Required for labs that ensure the safety and potency of cannabis products through rigorous testing.
• Combined-Use Licenses – Allowing businesses to engage in multiple activities within the cannabis supply chain, such as cultivation and sales.

Ancillary Cannabis Businesses in Montana

Montana's cannabis industry also relies on a network of ancillary businesses that provide crucial support to plant-touching operations. These services include:

1. Legal Compliance Firms – Guiding businesses through Montana's cannabis regulations to ensure full compliance with state laws.
2. Insurance Providers – Offering coverage that addresses the unique risks involved in cannabis production and retail.
3. Banking Solutions – Assisting cannabis businesses in managing finances, despite the federal limitations on banking services.
4. POS (Point-of-Sale) Companies – Supplying software systems that manage sales, inventory, and compliance for dispensaries.
5. Security Providers – Implementing security systems to protect cannabis businesses from theft and unauthorized access.
6. Accounting Firms – Helping cannabis businesses with tax preparation, bookkeeping, and staying compliant with financial regulations.
7. Marketing Agencies – Developing compliant marketing strategies that allow cannabis businesses to promote their brands effectively.

Other types of ancillary businesses include:

• Software and Technology Providers
• Packaging and Labeling Companies
• Consulting Firms
• Data Analytics Firms