Delaware’s legal recreational marijuana industry has completed its first full year of operation with strong sales growth, expanding business participation, and increasing access for consumers across the state, according to state officials.
Since the market launched, Delaware has recorded over $53.4 million in revenue from recreational purchases. Cannabis Commissioner Joshua Sanderlin noted that sales have more than doubled compared with the period before recreational cannabis became available. Sanderlin also pointed to consistent monthly growth, explaining that July produced the highest sales total since the market opened.
The Office of the Marijuana Commissioner (OMC) reports that Delaware currently has 38 active permits covering retail operations, testing, cultivation, and manufacturing. Officials expect that number to increase in the coming months as more approved businesses begin operating.
One company benefiting from the expanding market is The Farm in Felton. The family-owned business first served medical cannabis patients before adding recreational sales after the state launched its adult-use program.
Jennifer Stark, the company’s chief executive officer, described the past year as an important turning point for cannabis businesses. She said opening the recreational market attracted many customers who previously chose not to enroll in the state’s medical cannabis program.
According to Stark, the ability to purchase cannabis without obtaining a medical card has encouraged more local residents to visit licensed dispensaries. She added that The Farm’s drive-thru service has become a popular feature, offering customers an additional level of convenience when making purchases.
Despite the industry’s positive first year, Sanderlin acknowledged that starting a cannabis business continues to present significant financial challenges since marijuana remains illegal under federal law.
He explained that cannabis businesses are generally unable to secure conventional bank financing or apply for loans through the U.S. Small Business Administration. Those restrictions can make it difficult for new operators to raise the capital needed to launch their companies.
Looking ahead, state officials believe the market will continue to expand as more retailers, growers, and manufacturers begin operations. Sanderlin said increasing the number of suppliers should provide consumers with a wider range of products while strengthening competition across the industry.
The OMC also reported continued support for the state’s Social Equity Fund during the program’s first year. Nine grants totaling over $1 million were approved to help entrepreneurs enter the regulated marijuana market. As additional licensed businesses open statewide, officials say the focus is now shifting from establishing the industry to supporting its long-term growth and sustainability.
This news that licensed marijuana businesses in Delaware are recording strong performance in their sales is likely to be welcomed by other industry participants, such as Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) that have long wanted to see more states setting up regulated markets for marijuana.
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