May 11, 2021

Illinois Retail Cannabis Sales Top $150 Million in April

Photo by Antonio Gabola on Unsplash

The Illinois Department of Financial and Professional Regulation (IDFPR) published adult-use sales figures for April 2021 earlier last week. In a press release, IDFPR announced that adult-use cannabis retailers in the state generated over $114.9 million in gross revenue in April, a new record. April’s sales are up 5.3% from March’s over $109.1 million.

Combined with April’s medical cannabis sales, which we examine below, total retail cannabis revenue in Illinois reached over $150.2 million last month, up 3.7% from over $144.8 million in combined sales in March.

Sales to out-of-state customers increased in April, but made up a comparable proportion of total sales relative to March. According to IDFPR, residents from states other than Illinois were responsible for 30.5% of sales in April, or over $35 million. In March, out-of-state shoppers accounted for 30.6%, or over $33.4 million, of the total revenue tallied. In February 2020, prior to the COVID-19 pandemic, out-of-state sales made up 36% of Illinois’ monthly adult-use revenue total.

Average daily adult-use sales increased month-over-month for the thirteenth straight time in April. Mean daily sales figures for the trailing three months are shown in the table below.

Adult-Use Cannabis Sales (Retail) – Trailing 3 Months

The IDFPR’s latest update also includes the number of “items” sold. An item can represent a single product of any type, be it flower, concentrate, or edible.

Items Sold & Average Price per Item (Retail) – Trailing 3 Months

Reported wholesale flower prices in Illinois’ adult-use market fell again in April. From March to April, monthly average rates for flower in the state’s adult-use sector decreased by 3.9% per pound. The state’s Spot Index, which includes both medical and adult-use wholesale transactions, also declined in the same span, by 1.6% compared to March.

The Illinois Department of Public Health (IDPH), which oversees the state’s medical cannabis program, also recently issued an update on patient numbers and sales figures for April. IDPH data shows retail sales of medical cannabis in April totaled over $35.2 million, down by 1.1% compared to March’s revenues of over $35.6 million.

April 2021’s retail revenues are up by 13.2% year-over-year, compared to over $31.1 million in sales recorded in the same month in 2020. The year-over-year growth rate in monthly sales in April subsided relative to that recorded the month prior, which was 19%. Illinois medical cannabis sales data shows that sector of the market appears to have leveled off recently in terms of patient demand, after experiencing robust growth in 2019 and 2020.

Of April’s sales total, 47.1% – or over $16.6 million – went to purchase flower, a proportion up from the month prior, when the percentage was 46.7%. Flower’s proportion of total medical cannabis sales in Illinois trended upward through most of 2020, but leveled off around 48% in the latter months of last year.

As of the end of April 2021, IDPH had approved 156,224 patient applications since the opening of the state’s registry in September 2014, up by about 1,250 from the month prior. 55 dispensaries served 69,257 unique patients in April, down by about 50 unique patients compared to the previous month.

Each patient purchased, on average, 18.2 grams of flower in April, down from 18.5 grams in March. The average retail price of a gram of flower in Illinois’ medical market in April was $13.18, up from March’s mean retail price per gram of $13.00.

On the wholesale side of the market, Illinois cultivation centers recorded over $33.2 million in revenue in April, down by 0.9% from over $33.5 million in supply side sales documented in March.

May 4, 2021

Arizona Monthly Cannabis Sales Surpass Totals in Oregon and Nevada

Photo by Dima Mukhin on Unsplash

Arizona officials have released preliminary sales revenue data for February, for both the state’s adult-use and medical cannabis markets. February was the first full month of adult-use sales in Arizona.

According to Ryan Randazzo, a reporter for the Arizona Republic, February’s adult-use sales reached $35.7 million. However, he notes that, according to the state Department of Revenue (ADOR), “some of that money was held over from the 10 days of [recreational] sales in January, while some taxes have yet to be remitted.

Medical cannabis sales revenue reached $57.8 million in February, according to Randazzo. As we have covered for some time, the Arizona Department of Public Health’s monthly reports on the state’s medical cannabis system only include sales volume figures. Randazzo points out that ADOR implemented a new code for medical cannabis taxes, allowing monthly revenue figures to be assessed. We noted in early March that February 2021’s medical cannabis sales volume was down 10% year-over-year.

All told, Arizona’s licensed cannabis businesses generated a total of roughly $93.5 million in February.

Arizona’s first month of combined adult-use and medical cannabis sales are greater than total sales in some states with more mature adult-use markets. For example, Oregon retailers sold over $88.9 million worth of product to both adult-use consumers and patients in February. Oregon’s adult-use market opened in late 2016. Nevada has not yet released February sales figures, but total adult-use and medical sales in that state have hovered consistently between about $75 million and $83 million for the past several months. Recreational sales commenced in Nevada in July 2017.

The newer adult-use markets of Michigan and Illinois outpaced all of those mentioned above in February, with total retail sales of $105.8 million and $110.3 million in February, respectively. As we have noted in previous reports, strong revenue figures out of new adult-use markets are reshaping the U.S. cannabis landscape. Previously, Washington State, Oregon, and Nevada rounded out the top five largest state-legal cannabis markets, after California and Colorado. Additionally, the fact that Arizona’s February adult-use sales trailed retail revenues from its medical cannabis sector significantly indicates that total monthly sales have significant room for growth once licensed businesses can build out additional production to fully supply the recreational side of the market.

April 27, 2021

Michigan Retail Cannabis Sales Climb Nearly 38% in March

Photo by Chris Smith from Pexels (cropped)

The Michigan Marijuana Regulatory Agency (MRA) recently issued its Monthly Report for March 2021, providing sales, licensing, and production data for the state’s medical and adult-use cannabis markets. Overall, total adult-use and medical cannabis sales in Michigan in March amounted to almost $145.8 million, up by 37.8% compared to over $105.8 million in combined revenues in February. March’s combined legal cannabis sales represent a new record for Michigan’s market.

Michigan’s retail cannabis product pricing data reviewed below shows that average flower prices paid by consumers and patients dropped notably again in March, more so on the adult-use side of the market. Based on flowering plant counts as of the end of last month, supply should at least be steady, if not expanding, over the next couple months, which should help support the expanded sales levels seen in March.

March 2021 Michigan Adult-Use Cannabis Market Summary

Adult-Use Cannabis Sales (Retail) – Trailing 3 Months

Average daily sales in March continued the current run of expanding demand that began in December 2020. Retail revenues averaged over $3.14 million per day in Michigan’s adult-use system in March, up 31.4% from over $2.39 million in February.

The mean retail price of an ounce of flower in the state’s recreational sector has trended downward significantly during the last three months.

  • January 2021: $323.69 ($5,179 per pound)
  • February 2021: $267.20 ($4,275 per pound)
  • March 2021: $254.91 ($4,079 per pound)

Flower sales volume and revenue figures for the trailing three months are shown in the table below.

Retail Flower Sales Volume & Revenue (Adult-Use) – Trailing 3 Months

The number of plants reared and harvested in the most recent three months are shown in the table below. Vegetative and flowering plant figures are as of month-end, while harvested plant figures encompass all those successfully brought in during the entire month.

Plants Cultivated by Licensed Growers (Adult-Use) – Trailing 3 Months

March 2021 Michigan Medical Cannabis Market Summary

A rolling tally of the most recent monthly sales made by medical cannabis dispensaries are shown in the table below.

Medical Cannabis Sales (Retail) – Trailing 3 Months

Similar to February, average daily sales in Michigan’s medical market show continued demand growth in March, albeit at a lower rate than on the recreational side. In March, medical dispensaries sold over $1.55 million per day, on average, up 14% from over $1.36 million in average daily sales in February.

The average retail price of an ounce of flower in Michigan’s medical cannabis system in the most recent three months are as follows:

  • January 2021: $252.02 ($4,032 per pound)
  • February 2021: $229.22 ($3,667 per pound)
  • March 2021: $217.49 ($3,480 per pound)

Retail sales of flower in the medical market and month-over-month changes for the most recent three months are as follows:

Retail Flower Sales Volume & Revenue (Medical) – Trailing 3 Months

The number of plants being reared by licensed growers in Michigan’s medical cannabis market at the close of each of the trailing three months is shown in the table below. Vegetative and flowering plant figures are as of month-end, while harvested plant figures encompass all those successfully brought in during the entire month.

Plants Cultivated by Licensed Growers (Medical) – Trailing 3 Months

April 20, 2021

Colorado Retail Marijuana Sales Dip in February

Photo by Fr. Daniel Ciucci on Unsplash

The Colorado Department of Revenue (CDOR) recently released its monthly Marijuana Sales Report for February 2021. Total sales fell in February, which is not an atypical occurrence based on historical trends. However, tax data indicates increased wholesale trading and transfers in the adult-use market, yet Colorado’s Spot Index declined in February compared to the prior month.

In February, combined retail sales of adult-use and medical cannabis totaled over $167 million, down by 11% compared to January’s combined revenues of over $187.6 million. February 2021’s sales are up by 20.5% year-over-year, from over $138.6 million in the same month in 2020. After January 2021’s monthly sales showed an annual growth rate well in excess of that observed for 2020 overall, February’s fell below last year’s growth rate. Total retail sales expanded by about 26% in Colorado in 2020.

Adult-use retailers in Colorado tallied over $134.5 million in February. Revenues from the state’s adult-use sector in February were down by 11.3% compared to the over $151.7 million in retail sales generated in January, in addition to being up by 20.1% year-over-year. Retail revenues from the adult-use sector expanded by over 24% in 2020.

Medical cannabis revenues in February came to over $32.4 million, down by 9.5% from the over $35.8 million in sales tallied in January in that section of the market, but up by 22.2% year-over-year. Retail sales in Colorado’s medical market in 2020 climbed by 30.8% from 2019.

In the wholesale realm, tax collection data for March 2021 – which corresponds generally to wholesale transfers and transactions executed in February – shows that the 15% excise tax on wholesale activity in Colorado’s adult-use system resulted in over $10.2 million accruing to state coffers. March’s wholesale excise tax receipts are up by 2.5% compared to tax collections from the previous month, which amounted to over $10 million.

Average Market Rates (AMRs) used by the state to assess the wholesale excise tax on internal transfers of flower, trim, and other plant material between commonly-owned adult-use licenses were unchanged from January to February. (Since August 2017, AMRs are adjusted quarterly by the Colorado Department of Revenue.) As a result, tax collection data indicates that vertically integrated adult-use businesses moved increased amounts of product to associated retailers and processors in February as demand remains robust.

Colorado’s Spot Index trended downward again in February, extending behavior that was observed to commence in November 2020. For February as a whole, the state’s composite average price was down by 2.1% from January’s monthly mean.

April 13, 2021

Monthly Retail Cannabis Sales in Oregon Up 22.9% in March

Photo by Isaac Smith on Unsplash

The Oregon Liquor Control Commission (OLCC) recently released sales data for March 2021. According to OLCC, licensed retailers generated over $109.3 million in revenue last month, a new record for monthly sales in the state’s market and up by 22.9% from over $88.9 million tallied in February. March 2021’s sales are up by 28.9% year-over-year, from over $84.8 million in the same month in 2020.

As we have remarked upon in regard to most state-legal U.S. cannabis markets, a notable jump in sales from February to March has come to be expected in any given year; in 2020, sales in Oregon rose by almost 22% in the same period, comparable to this year’s March spike. March 2021’s annual growth rate is up from February’s, but still represents a significant decrease from the almost 46% year-over-year increase in sales documented in January 2021; additionally, it is more comparable to the 20% – 25% annual increases in monthly sales that were observed consistently prior to the COVID-19 pandemic.

In March, sales revenue generated by adult-use consumers rose to over $99.6 million, up 22.5% from over $81.3 million in February. Sales to patients also increased in March, to over $9.6 million, from almost $7.6 million the previous month.

Month-over-month changes in retail sales revenue for the OLCC’s product categories are as follows: Revenue from sales of “usable marijuana” (the OLCC’s term for flower, trim, and pre-rolls) climbed 21.6%, from over $49.6 million in February to over $60.3 million in March. Usable marijuana products made up 55.2% of all sales in March, compared to 55.8% in February.

Concentrates and extracts generated over $27.8 million in March, up 19.8% from over $23.2 million in retail revenue in February. Concentrates and extracts constituted 25.5% of sales in March, compared to 26.1% in February.

Finally, sales revenue from edibles and tinctures increased in March as well, to over $11.3 million, up 24.2% from over $9.1 million in January. Edibles and tinctures accounted for 10.4% of total sales in March, compared to 10.3% in February.

Monthly harvest figures ticked upward in March. The wet weight of all plants harvested in Oregon expanded by 7.7% from 232,972 pounds in February to 250,962 in March. March 2021’s harvest wet weight is up 32.3% from 189,669 pounds brought in by licensed growers in March 2020, indicating the notable expansion in non-outdoor production noted in recent months has continued to persist.

1 2 3 34