Licensing data may suggest broad participation, but small-scale cannabis producers that survive beyond initial launch remain rare. What is commonly described as “craft cannabis” functions far more as a marketing label than as a stable economic segment. The erosion of small cannabis producers reflects policy design choices, particularly the way competitive pressure has been introduced. Debates about craft cannabis often obscure this reality by treating craft as an aesthetic or cultural designation rather than an economic one. Craft cannabis depends on structural conditions that allow small producers to function as businesses rather than speculative ventures.