Greater than a half dozen U.S. states the place marijuana is authorized notched record-breaking month-to-month gross sales in December, with many comparatively new adult-use hashish markets persevering with to broaden and American consumers typically stepping up vacation spending.
A lot of the month-to-month gross sales information have been seen in states that legalized marijuana extra lately and, because of this, are nonetheless experiencing the early progress of markets of their rising phases. Connecticut, for instance, which began gross sales a yr in the past, set new month-to-month gross sales information each single month of 2023. Maryland additionally set information throughout each single month of gross sales final yr, although retail shops didn’t open till July.
However even in Illinois, which has now seen three full years of adult-use gross sales, December’s adult-use numbers have been up sharply, rising almost $15 million from a month earlier. Massachusetts retailers additionally hit a excessive mark after first opening in 2018, up $11.5 million from the month earlier than. December tends to be a powerful gross sales months, even in additional mature markets. And Michigan, which noticed gross sales start in 2019, noticed a spike in gross sales to finish a record-setting $3 billion yr.
Gross sales in New Mexico and Rhode Island, in the meantime, continued to develop steadily, whereas Missouri’s less-than-year-old leisure marijuana market plateaued, with figures rising solely barely over the yr after retailers opened their doorways in February.
In almost all states, rising adult-use hashish gross sales have coincided with falling gross sales of medical marijuana, as some sufferers flip to leisure retailers out of comfort, on account of product value or choice or to keep away from state registration.
Although some states have seen gross sales numbers flatten or fall over time, the marijuana market throughout the US as an entire is anticipated to proceed to scale up as extra states come on-line and youthful techniques proceed to mature. The multinational funding agency TD Cowen stated final month it tasks authorized hashish gross sales will attain $37 billion in 2027, up from what it stated was about $29 billion in 2023. A minimum of a few of that progress is anticipated to return from elevated substitution of hashish for alcohol, significantly amongst youthful adults.
Connecticut
Leisure hashish gross sales in Connecticut started a yr in the past, in January 2023. By Could, adult-use purchases had surpassed medical marijuana gross sales, which slowed barely over the course of the yr. Between each the leisure and medical markets, gross sales for all of 2023 got here in at greater than a quarter-billion {dollars}—$274 million.
In December, adult-use retailers bought simply over $17.1 million in hashish merchandise—persevering with a string of consecutive month-to-month information—whereas medical marijuana gross sales exceeded $10.3 million. Collectively, the markets’ roughly $27.5 million in gross sales marked the very best single-month gross sales complete to date recorded, in accordance with the Connecticut Division of Client Safety (DCP).
“One yr in the past, the state of Connecticut opened a wholly new market, creating jobs, alternative, and a protected, regulated method for adults to buy hashish,” DCP Commissioner Bryan T. Cafferelli stated in a press release earlier this month. “Since then, many new companies have opened and extra are on the best way. We’re happy with the work carried out by our company over the previous yr, and we’re wanting ahead to continued progress, truthful regulation, collaboration with our sister businesses, and considerate drawback fixing as new challenges current themselves within the years to return.”
Illinois
December has usually been a powerful marijuana gross sales month in Illinois, and 2023 was no exception. After ups and downs in gross sales in the course of the first a part of the yr and a plateau in the course of the second half, adult-use receipts climbed almost $15 million from November to December.
All advised, between leisure and medical markets, authorized hashish gross sales in Illinois set a brand new annual report in 2023, reaching slightly below $2 billion.
December’s adult-use gross sales not solely set a report for the leisure system, it additionally contributed to mixed gross sales information between adult-use and medical marijuana markets—at the same time as medical gross sales have slowly decreased in recent times.
Leisure marijuana gross sales generated $417.6 million in tax income for the state in 2023, in accordance with the Illinois Division of Income.
“From day one, my administration has put fairness first to construct probably the most accessible hashish trade within the nation,” Gov. J.B. Pritzker (D) stated in a press launch saying the fiscal information on Thursday. “Our work will proceed to restore previous hurt whereas offering alternatives for communities throughout the state and making a extra affluent future.”
Maryland
After opening authorized hashish gross sales to adults on July 1, Maryland leisure marijuana retailers bought greater than $330 million in 2023, contributing to just about $790 million price of complete gross sales for the yr between the state’s medical and adult-use markets.
In December, leisure gross sales—which have set new information each month because the market opened—tallied greater than $61.5 million, whereas medical gross sales got here to simply beneath $35 million, an uptick of greater than one million {dollars} from the month earlier than, however notably lower than medical marijuana gross sales previous to the opening of adult-use shops.
As for presidency income from hashish purchases, state officers reported final month that Maryland introduced in additional than $12 million in marijuana taxes in the course of the first quarter of authorized gross sales to adults.
Gov. Wes Moore (D) stated on the time that the “sturdy revenues” to date “replicate the power of the rollout of Maryland’s newly shaped grownup leisure hashish trade,” saying the cash is “essential to supporting social fairness and financial progress, that are central” to his administration’s values.
Massachusetts
Massachusetts marijuana retailers bought a report $158.7 million price of authorized hashish merchandise in December, bringing the state’s complete recorded gross sales for 2023 to just about $1.8 billion. Most-ever gross sales to adults, at $140.0 million for the month, have been largely answerable for December’s total report.
As of the tip of 2023, adult-use retailers had seen greater than $5.54 billion in complete gross sales since opening in late 2018. Leisure gross sales additionally now make up the overwhelming majority of authorized marijuana gross sales within the state: Of the overall for 2023, greater than 87 p.c ($1.57 billion) got here from adult-use gross sales.
Although medical marijuana just isn’t topic to state tax, adult-use merchandise incur a ten.75 p.c excise tax along with the state’s 6.25 p.c gross sales tax. Municipalities can add as much as one other 3 p.c tax on high of these. State information confirmed for the primary time in 2022 that the state is producing extra tax income from marijuana than alcohol.
Michigan
Michigan noticed greater than $3 billion in purchases throughout 2023, with the overwhelming majority coming from adult-use gross sales. In December alone, licensed companies tallied a report $279.9 million in complete gross sales. Of that, about 99 p.c ($276.7 million) got here from leisure gross sales.
Michigan voters authorized adult-use marijuana legalization in 2018, with retailers opening the subsequent yr.
Officers stated in November that tax income from authorized marijuana grew by 49 p.c in comparison with the earlier yr, surpassing the quantity of income made out of alcohol gross sales. Marijuana gross sales incur a ten p.c excise tax—among the many lowest charges within the nation—in addition to a 6 p.c state gross sales tax.
In October 2023 alone, officers stated, the marijuana excise tax produced $52.4 million in tax income—greater than every other single supply except for gross sales and use taxes, earnings taxes, insurance coverage taxes and tobacco taxes.
Missouri
Missouri launched adult-use marijuana gross sales in February of final yr and nearly instantly started recording roughly $100 million in month-to-month gross sales. General in 2023, medical and leisure retailers mixed bought greater than $1.3 billion in hashish merchandise.
Whereas medical marijuana gross sales have declined notably because the opening of the adult-use market, leisure gross sales have slowly grown. As such, whereas adult-use gross sales set a report in December, at $106.5 million, total gross sales have been down barely from a report set in February.
Because the state approaches the primary anniversary of authorized adult-use gross sales, officers are nonetheless working to make accompanying adjustments to the prison justice system. Earlier this month, state courts requested lawmakers for an extra $3.7 million to proceed expunging previous cannabis-related prison information, noting that many older information aren’t digitized and require guide processing. Courts initially acquired $4.2 million to finish the method.
The regulation has already led to the expungement of greater than 100,000 marijuana instances from court docket information.
New Mexico
Gross sales of authorized marijuana in New Mexico jumped to $50.5 million in December, with adult-use retailers promoting about $37.5 million and medical dispensaries including one other $13 million to that. That marked information each for mixed markets in addition to leisure gross sales alone.
Since adult-use marijuana shops opened their doorways in April 2022, the market has seen $608.4 million in complete purchases, with medical gross sales accounting for about $307.5 million.
Greater purchases than in previous months drove December’s gross sales increase, with the common medical transaction coming in at slightly below $52 and the common adult-use sale at about $42.50. The typical transaction value in each markets has risen barely prior to now two months after the determine in each markets hit their lowest-ever factors in October.
It’s not clear from the publicly out there gross sales information whether or not the upper averages are on account of dearer merchandise or customers and sufferers shopping for extra.
In keeping with a state labor report launched final June, employees in New Mexico’s marijuana trade are having fun with larger pay on common than they have been incomes at their earlier jobs.
Rhode Island
December 2023 in Rhode Island noticed almost $7.8 million in adult-use marijuana purchases—not solely a month-to-month report, but additionally greater than double that of December 2022, the state’s first month of authorized gross sales. Over the course of the previous yr, gross sales figures within the state’s leisure system have grown steadily as medical gross sales have slipped considerably.
The sturdy progress in adult-use gross sales has made up for the dwindling medical purchases, with December’s mixed gross sales nonetheless coming in at $10.2 million, breaking a earlier report set in August.
All advised, 2023 noticed greater than $100 million in authorized marijuana gross sales within the Ocean State, roughly two thirds of which have been purchases by adult-use customers.
Rhode Island Gov. Dan McKee (D) lately celebrated the state’s first yr of authorized adult-use gross sales, which got here to an in depth on the finish of November. Throughout that interval, complete gross sales reached $105.0 million, with nearly $70 million from adult-use gross sales.
“A yr into adult-use hashish gross sales in Rhode Island, we’re happy with the cautious execution that outlined our entry into this trade,” he stated. “This success represents rising alternative for our state’s financial system but additionally for the almost 70 licensed cultivators, processors, and producers within the State of Rhode Island which we all know are integral to our native hashish provide chain.”