Kentucky's medical cannabis market is rapidly emerging, with the state having legalized medical cannabis on March 31, 2023, and the program officially launching on January 1, 2025. As initial sales began in late 2025 and early 2026, the demand for licensed cannabis businesses, including those involved in the crucial distribution of products, is growing across the Commonwealth.

While Kentucky does not issue a standalone "Distribution" license, the activities of distributing medical cannabis products are integral to cultivator, processor, and dispensary operations. Cultivators are authorized to deliver and sell raw plant material to other licensed cannabis businesses, while processors handle the acquisition and transfer of manufactured products to dispensaries. This presents unique opportunities for entrepreneurs looking to enter the supply chain for medical marijuana in cities such as Lexington, Russellville, and Glasgow.