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Utah’s cannabis market, with its underserved demand due to strict regulations and high prices, hints at significant untapped potential.
A recent poll shows that 50% of Utahns now support the legalization of adult-use recreational marijuana, reflecting a significant shift in public opinion.
The survey, conducted by Noble Predictive Insights for the Utah Patients Coalition, highlights evolving attitudes just six years after the state legalized medical marijuana.
Utah’s cannabis market, with its underserved demand due to strict regulations, high prices and limited access, hints at significant untapped potential for investors if rules evolve.
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Key Poll Findings
The poll shows that 50% of Utah voters support recreational cannabis legalization, while 38% prefer medical cannabis only and 9% believe it should remain illegal. Younger voters, aged 18-34, overwhelmingly favor legalization at 60%, while only 29% of those over 65 support it.
Shifting Attitudes And The Medical Cannabis Program
Desiree Hennessy, executive director of the Utah Patients Coalition, noted growing acceptance of recreational cannabis. She pointed to the evolution of the medical marijuana program, established after voters approved Proposition 2 in 2018, as part of the shift in attitudes. However, issues like pricing and access still push many patients to seek weed from other states or through illegal markets.
Rep. Jennifer Dailey-Provost emphasized that high prices in Utah’s medical program are driving patients elsewhere. She plans to introduce legislation in 2025 to improve pricing transparency for patients.
Cannabis Regulations In Utah
Utah maintains strict regulations on cannabis use, allowing only medical marijuana under the Utah Medical Cannabis Act. Smoking is prohibited, with legal options limited to capsules, tinctures and vaporized products. Penalties for possessing recreational cannabis remain severe, with fines of up to $1,000 for small amounts. Many patients still look to out-of-state sources to escape high costs.
Several companies, including Dragonfly Wellness, the first medical cannabis dispensary in Salt Lake City, are active in Utah’s regulated medical cannabis market. Multi-state operators such as Curaleaf CURLF, Columbia Care CCHWF, and Bloom Medicinals are also licensed to operate in the state, contributing to the network of 14 medical dispensaries. Utah recently issued its 15th medical cannabis pharmacy license, further expanding its regulated market.
Read Also: Why Pennsylvania’s GOP Districts Are Embracing Weed: The Cannabis Revolution You Didn’t See Coming
Market Insights For Cannabis Investors
According to the March 2024 report from the Utah Department of Health and Human Services, Utah’s medical cannabis market faces a competitive landscape due to cross-price pressures from neighboring states with mature adult-use cannabis markets.
As of March 2024, Utah had 83,421 registered medical cannabis patients, primarily treating pain, PTSD, and nausea. Utah’s medical market captures 40.13% of cannabis demand, with patients sourcing an average of 4.01 grams per month from medical dispensaries.
However, when it comes to purchasing decisions for medical cannabis in Utah, price is the most important factor for 28% of patients, followed by THC/CBD content at 22%. Price remains a dominant factor, consistently ranking higher than other attributes in patient decision-making.
Price discrepancies with neighboring states are driving patients to look for other options, with Utah residents willing to pay $12.15 per gram, compared to $8.37 in Colorado and $8.58 in Nevada. Monthly spending averages $109.10, close to the national average.
The report from the Department of Health and Human Services found that 25.5% of medical cannabis patients traveled out of state for cannabis in the past month, with 58.53% going to Colorado and Nevada.
Meanwhile, 26.6% of non-patients also traveled out of state for cannabis. There was only a 1.1% difference in travel frequency between medical and non-medical users, with non-patients slightly more likely to travel.
Future Of Recreational Cannabis In Utah
Despite growing support, Utah’s path to recreational cannabis legalization remains uncertain. Dailey-Provost notes that federal descheduling may be necessary before any significant political movement occurs. For now, Utah is surrounded by states with legal recreational markets, which could add pressure for future changes.
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