Recreational marijuana sales for adults 21 and older began on Aug. 6. Dispensaries were selling between $36 million to $37 million in medical cannabis per month over the last few months leading up to that.
These are approximate figures for comparative purposes as DCC’s seven-day reporting periods don’t always start or end neatly at the beginning or end of each month.
With October stretching across five calendar weeks, for example, which includes a few days of September and November — the full reporting period covering October would be from Sept. 29 through Nov. 2 — combined marijuana sales over that span totaled approximately $89.92 million.
While sales have seemingly hit a plateau for now, the fact they’ve generally stayed there for several months instead of decreasing is a promising sign for industry operators who believe there is room to grow from here.
During the first week of December, Ohio officially surpassed $200 million in adult-use sales, according to DCC, while total medical sales (which began in January 2019) have eclipsed $2 billion.
Ohio’s legal cannabis market should continue to benefit as regulatory rules that are still being implemented — and in many cases, still being written — continue to be rolled out.
This includes fifth and sixth rule packages that are still winding their way through the regulatory process, as Andrew Makoski, DCC’s chief legal, explained this month during a panel for the Drug Enforcement Policy Center at The Ohio State University’s Moritz College of Law.
Among those rule packages are guidelines for selling pre-rolls, a product category legalized by Ohio’s adult-use law that composes a sizable portion of some cannabis markets.
According to Headset, a provider of cannabis market data, pre-rolls accounted for more than 15% of all cannabis sales in the U.S. and one-third of sales in Canada in August 2023, for example.
Sales could also see a boost as more shops come online.
Currently, there are 124 dispensaries in the state with dual licenses to sell both rec and medical marijuana. But another 100 more retailers could open as the state awards additional so-called 10(B) licenses.
Other changes could benefit the industry as well, with some likely more impactful than others.
Among those are the potential for loosening advertising restrictions on cannabis companies and changing packaging amounts for flower for adult-use customers that are currently derived from “day unit” measurements of one-tenth of an ounce.
A bullish outlook for Ohio’s cannabis market is spurring Akron-based Klutch Cannabis to expand cultivation operations with an additional facility in Cuyahoga Falls.
Klutch founder and CEO Adam Thomarios told Crain’s that the investment in that facility is a sign of his optimism for this market.
“This has been a long time in the works, planning, engineering and designing it,” he said. “We’re excited for our growth and excited about the retail growth in the state. We’re looking forward to Ohio advancing as far as the advertising rules go.”
In the meantime, dispensary prices have continued to come down since the launch of rec marijuana in August.
During that first week of adult-use, prices on average for cannabis flower in the state were $26.59 per one-tenth of an ounce and $9.40 per gram, according to DCC. Manufactured products cost $31.06. on average.
During the first week of December, prices on average for cannabis flower were $21.15 per one-tenth of an ounce and $7.47 per gram and $28.42 per manufactured unit. Those prices are down since August by 20% for flower and about 8% for processed or manufactured products.
While not exactly an apples-to-apples comparison given differences in size and maturity, Ohio’s legal cannabis market is showing more stability than neighboring Michigan.
In August, Michigan set a new record for monthly cannabis sales at $295.4 million. However, that oversupplied market has begun to contract some since then, which played a role in the closure of Chicago-based PharmaCann’s LivWell operation in Warren, Michigan.
Based on a per capita analysis, Headset estimates that Ohio’s combined legal cannabis market could ultimately grow to $2.1 billion in annual sales at maturity.
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