Ohio’s recreational marijuana market has experienced impressive growth, generating more than $11.5 million in sales in its first week. According to the state’s Commerce Department, Cannabis Control Division, the total revenue from adult-use cannabis sales reached $11,530,708 as of Aug. 10, 2024.
Sales officially began on Aug. 6, eight months after Ohio voters approved recreational cannabis legalization, with 57% of voters supporting the ballot measure. The average cost of an ounce of flower was $266. The data shows that 1,285 pounds of cannabis plant material and 173,043 units of processed products were sold.
Ohio’s medical marijuana market is also thriving, pulling in more than $8.3 million in sales in the same period. When recreational sales are factored in, the state’s annual revenue is expected to approach $1.3 billion. This amount would be much more than Michigan’s first-year cannabis sales revenue in 2020, which came in at $474 million for medical use and $510 million for recreational use. Conversely, Illinois recorded sales of about $11 million in the first week of 2020.
Currently, Ohio has 120 dual-use stores registered to sell marijuana for both recreational and medical purposes, up from 98 when recreational cannabis sales first started. The state intends to grant about 170 more licenses to increase retail options and 50 licenses set aside for social-equity candidates.
Despite the success, more than 70 cities across Ohio have enacted local bans preventing recreational cannabis entities from operating within their jurisdictions, as reported by Ohio State University’s Moritz College of Law.
Under the ballot initiative that legalized recreational marijuana, a 10% tax is applied to all nonmedical cannabis purchases. Revenue from this tax is allocated to five different state funds: the Marijuana Social Equity and Jobs Fund, the Recreational Use Tax Fund, the Host Community Marijuana Fund, the Substance Abuse and Addiction Fund, and the Cannabis Control Division and Tax Commissioner Fund. These funds are designed to address a range of needs, from social-equity initiatives to addiction services.
Meanwhile, large marijuana operators are moving quickly to capture market share. Ascend Wellness Holdings launched recreational sales at its Carroll store on Aug. 15, 2024, following its initial rollout at locations in Sandusky, Cincinnati, Piqua and Coshocton. Verano Holdings, based in Chicago, also began recreational sales at its five Zen Leaf stores across the state.
Recreational cannabis currently is legal in 24 states, the District of Columbia and two territories. The entire cannabis industry, including companies such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED), will be rooting for the industry in Ohio to grow and reach its full potential so that the consumers who need these products can access them legally and conveniently.
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