In 2023, voters in Ohio approved the legalization of recreational cannabis for adults aged 21 and above. But while residents supported the measure at the ballot box, lawmakers have spent months debating if and how the law should be changed.
For some people, cannabis is a business opportunity or a hobby, while others view it as medicine, a problem, or even a public health concern.
Recreational sales officially launched on August 6, 2024. At the time, 98 dispensaries were authorized to serve both medical patients and recreational buyers. That number has since grown to 162 locations across the state.
According to the state’s Division of Cannabis Control (DCC), more than 100,000 pounds of cannabis flower have been sold since August 2024. Medical cannabis sales, however, have declined, with many patients choosing to skip the hassle of renewing medical cards now that cannabis is widely available.
Total sales in the past year have reached $1 billion, with 70% of this coming from recreational sales. While the numbers look strong on the surface, the figure lags behind what other states are seeing.
Pennsylvania, which only allows medical sales and has roughly the same population as Ohio, has consistently averaged $1.5 billion annually from its program, outpacing Ohio’s combined sales by over 30%. Missouri, with only half of Ohio’s population, brought in approximately $1.5 billion during its first year of recreational sales.
Ohio dispensary operators say competition is hurting them, with shops selling delta-8 THC, which is still unregulated, continuing to draw customers. Michigan also presents a challenge, as cannabis across the border is consistently cheaper than what Ohio retailers can offer.
In the political arena, lawmakers have debated multiple proposals, including limiting home cultivation and penalizing passengers who use cannabis in cars. The state’s main hemp and cannabis bill has stalled, though legislators plan to revisit it later in the year.
Meanwhile, social equity program funding—designed to give small businesses and disadvantaged communities a fairer shot at entering the market—was cut from the state budget.
At the same time, cities with dispensaries have yet to receive the tax revenue they are owed.
Ultimately, the future of Ohio’s marijuana industry depends largely on how policymakers address these challenges. Whether the market can keep growing will be shaped not just by consumer demand, but also by the rules that state leaders choose to implement.
The marijuana industry around the country and beyond, including businesses like Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), will be watching how the authorities in Ohio address the issues that could impact the success of the legal marijuana industry in the state.
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