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Illinois’ cannabis industry hit $2 billion in total sales in 2024, generating $490 million in tax revenue, marking another year of growth since recreational cannabis was legalized in 2020.
Adult-use dispensaries accounted for $1.72 billion, a 2.5% increase from 2023, while medical cannabis sales continued their three-year decline to $285 million.
More than 56 million cannabis products were sold, a 13% rise from the previous year. Illinois collected $473.8 million in adult-use sales taxes and $16.3 million in medical cannabis taxes, making cannabis a significant revenue source for the state. Despite these gains, businesses and lawmakers continue to raise concerns about the flourishing intoxicating hemp market.
Governor JB Pritzker has called for legislation to regulate the sale of intoxicating hemp products, which remain unregulated and free of the high tax rates the state places on cannabis sales.
Industry leaders warn that Illinois’ tax rates of up to 40% are pushing consumers to purchase from neighboring states like Michigan and Missouri, where cannabis taxes are considerably lower.
Equity remains a contentious issue. Social equity applicants, who received 65% of new licenses in 2023, accounted for only 11.9% of total sales, though that figure rose to 38% by December 2024. Critics argue that restrictions on medical cannabis sales and the dominance of multi-state operators (MSOs) continue to disadvantage small and minority-owned businesses.
Illinois now has 244 dispensaries, with over 100 applicants awaiting approval. Market analysts project 2-6% annual growth, but regulatory uncertainties, tax burdens, and competition from the unregulated hemp market remain key hurdles for the state’s $2 billion cannabis industry.
“}]] Illinois’ cannabis industry hit $2 billion in total sales in 2024, generating $490 million in tax revenue, marking another year of growth since recreational cannabis was legalized in 2020. Read More
