Arkansas medical marijuana patients bought more cannabis but spent less money in 2024, as softening prices drove sales higher but cut into dispensary revenue.
The state’s 37 licensed retailers sold 75,598 pounds of medical marijuana last year, up 21.5% from 2023. But total sales fell 2.5% to $275.9 million, according to figures released this week by state regulators and first reported by KNWA-TV.
“Lower prices were a key reason for the increase,” Scott Hardin, spokesperson for the Arkansas Department of Finance and Administration, said in a news release.
The state collected more than $31 million in marijuana taxes during the year, including nearly $16 million from the standard 6.5% sales tax and $15.2 million from a special 4% tax on sales between growers and dispensaries.
Suite 443 in Hot Springs, which was Arkansas’ first dispensary, led December sales with 730 pounds. Natural Relief Dispensary in Sherwood sold 547 pounds, while CROP in Jonesboro moved 419 pounds. Eleven stores sold less than 100 pounds for the month, according to Cannabis Business Times.
The Arkansas market had been looking to expand, but in October, the state Supreme Court blocked a ballot measure that would have let more patients qualify and grow plants at home, ruling 4-3 that the proposal’s language was misleading.
Arkansas’ medical marijuana program, which serves about 110,000 patients, has generated more than $1.3 billion in sales since the first store opened in May 2019. December sales hit $24 million on volume of 6,721 pounds.
The state has collected roughly $150 million in total tax revenue from the program since its launch.
[[{“value”:”Lower prices were the primary reason for the revenue drop, according to a department spokesman.
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