Kentucky Cannabis Licensing Update: Retail Approvals, Market Trends & Regional Analysis
by Meilad Rafiei on April 7, 2025
Over the past year, Kentucky has made significant progress in its medical cannabis program, particularly with the approval of retail dispensary licenses. This development is crucial for stakeholders aiming to understand the state’s market dynamics and potential, especially as the state navigates early implementation phases. Read more about Kentucky Adult-Use Cannabis and the current medical market in our blog.
Kentucky Retail Cannabis License Approvals by District (as of April 2025)
The Kentucky Cabinet for Health and Family Services has issued 48 retail dispensary licenses across 11 licensing districts, with each district receiving exactly 4 licenses, per the requirements of SB 47 passed in 2023. This uniform geographic allocation is designed to promote access statewide, though some critics argue that the structure doesn’t align with local demand or population density.
| District | Counties Included | Retail Licenses Approved |
| 1 | Western KY (e.g., Paducah, Hopkinsville) | 4 |
| 2 | Owensboro, Henderson | 4 |
| 3 | Bowling Green area | 4 |
| 4 | Elizabethtown, Bardstown | 4 |
| 5 | Louisville Metro | 4 |
| 6 | Lexington, Frankfort | 4 |
| 7 | Northern KY (Covington, Florence) | 4 |
| 8 | Ashland, Morehead | 4 |
| 9 | Somerset, London | 4 |
| 10 | Pikeville, Eastern KY | 4 |
| 11 | Corbin, Harlan | 4 |
Kentucky vs. Other States: Population to Dispensary Ratios
With a population of approximately 4.5 million, Kentucky’s current retail allocation results in 1 dispensary per ~93,750 residents. Compared to other medical and adult-use states, this places Kentucky on the conservative end of access:
| State | Population | Retail Licenses | Ratio (Pop per Retail Store) | Program Type |
| Kentucky | 4.5M | 48 | ~93,750 | Medical |
| California | 39.4M | 1,244 | ~31,700 | Medical + Adult Use |
| New Jersey | 9.5M | 296 | ~32,100 | Medical + Adult Use |
| Colorado | 6.0M | 1,023 | ~5,900 | Medical + Adult Use |
| New York | 19.9M | 99 | ~201,000 | Medical + Adult Use |
| Michigan | 10.1M | 680+ | ~14,850 | Medical + Adult Use |
| Ohio | 11.8M | 130 | ~90,769 | Medical |
District Demographics: Spotlight on the 18–35 Consumer Segment
To understand which regions may present the strongest opportunities for retail operators, we analyzed each district’s population, median income, and percentage of residents between the ages of 18 and 35—a key consumer demographic for cannabis usage. Districts with higher concentrations in this age bracket, paired with population density and income strength, are considered the most commercially viable.
| District | Est. Population | Median Income | % Population Aged 18–35 | Market Appeal Rank |
| 5 (Louisville) | 1,200,000 | $58,000 | 28% | 1 |
| 6 (Lexington) | 770,000 | $62,500 | 27% | 2 |
| 7 (Northern KY) | 580,000 | $66,300 | 25% | 3 |
| 3 (Bowling Green) | 310,000 | $55,800 | 24% | 4 |
| 4 (Elizabethtown) | 295,000 | $54,400 | 23% | 5 |
| 2 (Owensboro) | 270,000 | $51,900 | 22% | 6 |
| 1 (Western KY) | 255,000 | $50,100 | 21% | 7 |
| 9 (Somerset) | 210,000 | $48,700 | 20% | 8 |
| 8 (Ashland) | 205,000 | $45,600 | 19% | 9 |
| 10 (Pikeville) | 180,000 | $42,500 | 18% | 10 |
| 11 (Corbin) | 165,000 | $44,300 | 17% | 11 |
License Resale Market: Valuations & Quiet Listings
Kentucky’s cannabis licenses are not only limited—they’re also highly coveted. Despite tight oversight on license transfers, the secondary market is already heating up.
Here’s what we’re seeing:
- On-Market Listings: Several dispensary licenses are currently publicly listed for sale, with most found in Districts 5, 6, and 9.
- Quiet Deals: Beyond those listings, we’re aware of non-public offerings – particularly in Districts 6 (Lexington) and 9 (Somerset)—with asking prices of around $5 million. Based on our knowledge, currently there are about 20 retail licenses being sold, on market and off market combined.
- Price Range: Licenses are currently being marketed in the $2 million to $5 million range, with pricing largely dependent on district demand, location, and level of facility readiness.
- Pre-Operational Status: Most of these licenses are pre-operational—they have been awarded by the state but still require buildout, permitting, and inspection approvals before opening.
- Transaction Activity: While there are no confirmed public closings yet, we’re aware of deals in the LOI phase that may close in Q2 or Q3 2025.
As one of the most limited-license programs in the country, Kentucky’s market is shaping up to be a premium environment for early operators and investors. Here are links to two of our own listings you can review:
Looking Ahead: Will Kentucky Go Adult-Use Cannabis?
A key consideration for licensees and investors is how long Kentucky may remain a medical-only market. Nationally, there’s a clear trend toward adult-use adoption—but the timeline varies.
When we remove early adopters like California (1996) and Colorado (2000) from the data set, most states that legalized medical cannabis after 2000 transitioned to adult-use in a 7–10 year window:
| State | Medical Legalized | Adult-Use Legalized | Years Between |
| Arizona | 2010 | 2020 | 10 |
| Michigan | 2008 | 2018 | 10 |
| New Jersey | 2010 | 2021 | 11 |
| Illinois | 2013 | 2020 | 7 |
| New York | 2014 | 2021 | 7 |
California and Colorado were excluded as outliers, given that they were among the first in the nation to legalize medical marijuana, long before national norms had formed.
For Kentucky, which legalized medical cannabis in 2023, a 7–10 year adoption curve would project adult-use legalization between 2030 and 2033. However, that could accelerate if surrounding states like Ohio or Tennessee make the move first, or if Kentucky’s medical program demonstrates strong performance and public support.
Until then, the current license holders are positioned at the forefront of a high-barrier, early-stage market—one that could evolve quickly if momentum builds.
