Oregon Cannabis Retail Sales Revenue Increases While Total Volume Sold Decreases
The Oregon Liquor Control Commission (OLCC) recently released sales and production data for May. Total sales revenue reached a new record high for the state’s market. However, sales volume declined across all categories, indicating higher retail price points for Oregon consumers and patients. Increasing retail rates correspond to a rise in wholesale prices that began in mid-April and continued through May.
The most recent OLCC data shows that total retail sales reached over $63 million in May, up by roughly 3% compared to revenues of around $61 million generated in April. May 2019’s sales are the highest monthly total recorded in Oregon’s market since licensed adult-use retailers opened their doors in October 2016. They are also up by about 19% year-over-year, from roughly $53 million in total retail revenues recorded in May 2018.
In May, sales revenue generated by both general consumers and registered patients increased compared to the month prior. Adult-use consumers spent around $58 million at licensed retailers in Oregon in May, up from around $57 million in April. Meanwhile, sales to patients rose slightly from about $5 million in April to settle just above about that amount in May.
Month-over-month changes in retail sales revenue and volume 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) increased to about $33 million in May, up from around $31 million in April. Sales volume declined to a bit under 19,000 pounds in May, after settling at about that point in April. The notable uptick in retail revenues generated by sales of flower in May while sales volume declined indicates that storefronts in Oregon charged higher prices for such product in May.
Concentrates and extracts generated just under $17.5 million in retail revenue in May, down slightly from about that amount the month prior. As sales in this product category largely held steady, the number of “units” of concentrates and extracts sold in May declined to roughly 865,000, down from about 880,000 the month prior.
Finally, sales of edibles and tinctures were also relatively steady and accounted for roughly $6.25 million in May, down from a little over that amount in April. A bit over 500,000 units of edibles and tinctures were sold to consumers and patients in May, down from roughly 525,000 units in April.
Harvest figures contracted in May compared to April. Licensed growers brought in a little over 125,000 pounds of wet plant material in May, down from roughly 165,000 pounds the month prior. After April 2019 saw an uptick compared to the same month the year before, when about 100,000 pounds of wet plant material were cut down, May 2019’s harvest volume is comparable to that documented for the same month in 2018.
Increased demand and fairly stable year-over-year harvest volumes for the first five months of 2019 have resulted in the state’s collective inventory of unsold flower and trim continuing to contract as the year wears on. As of June 2nd, data from Oregon officials shows that less than 825,000 pounds of dry cannabis plant material were logged as unsold in the state’s Cannabis Tracking System (CTS), down from a bit over 950,000 pounds recorded a month earlier. The amount of unsold concentrates and extracts was largely stable at a bit under 125,000 pounds as of June 2nd, down from roughly that amount as of May 2nd. Statewide inventory of unsold edibles and tinctures was also steady, at around 225,000 pounds of such products logged in Oregon’s CTS.