Last year saw many regulated recreational cannabis markets record significant growth in their sales. While established markets such as Colorado recorded slight declines in sales, states such as Maine and Arizona saw growth in their markets. Below, we examine adult-use sales using data from regulators in different states.
Recreational sales started strong last year, with monthly recreational cannabis sales peaking in March at $100 million. The state launched its adult-use cannabis market in 2021.
Adult-use cannabis sales in the state have relaxed since the pandemic, with the state selling only $1.14 billion in recreational cannabis through November last year. The figure is a slight decrease from the $1.18 billion recorded in 2022 for the same period.
Despite its record-breaking sales during the pandemic, the marijuana market in California has seen sales slip from late 2021. Between 2021 and 2022, year-over-year sales dropped by more than 10%. In 2023, this figure reduced to 8%, which is promising but still doesn’t represent true recovery.
The state, which outsells California when it comes to adult-use cannabis, didn’t record any significant decline in its growth last year. Figures show that year-over-year sales dropped to 48% between 2022 and 2023, from 55% in 2021 to 2022. It is expected that recreational sales will be strong in 2024.
Decreasing year-over-year marijuana sales over the last two years brought Colorado’s market value to its prepandemic levels. Figures show that between January and October 2023, recreational marijuana sales reached $1.15 billion. This is slightly lower than the figures recorded over the same period in 2019.
Last year, the state’s recreational sales totaled $901 million. This is quite a drop, especially when compared to sales in 2020 and 2021, which surpassed $1 billion. It is expected that adult-use sales in Oregon may recover this year.
The state’s first year of adult-use sales brought in almost $131 million, with forecasts expecting it to reach $145 million.
Last year, the state’s new recreational marijuana market raked in $331 million. Its location on the East Coast and its population density make it a market to watch this year.
Despite the state’s recreational marijuana market hitting new highs in sales last year, its growth has begun to slow. While this is expected in new markets, its decline is a bit more extreme.
In 2023, the state brought in $74 million in total recreational cannabis sales. This figure is significantly higher than its sales projection of $50 million. Rhode Island’s market is expected to continue growing in 2024.
These successes registered at state level could be because consumers are taking to the legally produced cannabis products made by numerous enterprises such as Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) and other state-legal cannabis businesses.
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