May 10, 2022

Illinois Cannabis Market Continues to Benefit from Customers Across State Lines

Lake Michigan
Photo: Stephan Cassara/Unsplash

The Illinois Department of Financial and Professional Regulation (IDFPR) issued adult use sales data for April 2022 this week. Combined sales to in-state and out-of-state residents at $131.8 million were up by just 0.6% month-on-month versus combined sales in March 2022 of $130.9 million. Year-on-year, April 2022 sales were up 14.6% from April 2021’s combined sales of $115 million.

April 2022 adult use sales to in-state residents were also up just 0.6% to $90.9 million versus March 2022 sales of $90.4 million but were up 13.8% from April 2021 in-state sales of $79.9 million. In-state sales were 69% of total sales in April 2022 versus 68.6% of sales in March 2022; in-state residents accounted for 69.5% of sales in April 2021.

April 2022 adult use sales to out-of-state customers inched up 0.7% to $40.9 million versus $40.6 million in March 2022 but were up 16.6% from sales of $35 million in April 2021. Out-of-state sales were 31% of total sales in April 2022 versus 30.5% in April 2021.

IDFPR supplies monthly data on the number of items sold; April items sold increased to 3.1 million, up 3.1% from March items sold of 3 million. The average price of each item sold was $42.48 in April 2022, down from $43.54 per item in March 2022 and down from $46.67 in April 2021. With spot wholesale prices down 13.3% in 2022, average retail item prices are down just 4.2% this year.

The Illinois Department of Public Health (IDPH), which oversees the state’s medical cannabis program, issued an update on patient numbers and sales figures for March 2022, in which retail medical sales were $32 million, up 13.4% from February 2022 sales of $28.2 million, but down 10.4% from March 2021 sales of $35.7 million.

IDPH reported 206,389 qualifying patients in March 2022, a 2.8% increase over February’s patient count of 200,709 and up 33.2% from March 2021’s patient count of 154,965.

Flower sales within the medical market were $14.6 million in March 2022, up 10.7% from February medical flower sales of $13.2 million, but down 12.5% from sales of $16.7 million in March 2021. Patients in the medical cannabis program purchased an average of 17.3 grams of flower in March 2022 versus 16.6 grams in February 2022. Patients paid an average of $12.52 per gram, up $0.17 from the February gram price of $12.35 per gram. Flower sales made up 45.7% of total medical sales in March 2022, down from 46.8% of sales in February 2022 and down from March 2021’s flower market share of 46.7%.

January 11, 2022

Neighboring States Continue to Fuel Illinois Marijuana Sales in 2021

Marijuana Dispensary
Photo: Add Weed/Unsplash

The Illinois Department of Financial and Professional Regulation (IDFPR) published adult use sales figures for December 2021 this week. Adult use sales soared in December 2021, jumping 14.2% to $137.9 million in combined in-state and out-of-state revenues. December 2021 sales represent a new all-time monthly high in Illinois’ adult use market as it turned two years old.

In-state sales were up over 17% month-on-month, jumping from $81.7 million in November to $95.6 million. Out-of-state sales jumped 8.5% to $42.4 million in December 2021. Out-of-state sales were 30.7% of total sales in December 2021.

December 2021 combined in-state and out of state sales skyrocketed by 58.8% over December 2020. Cumulative 2021 adult use sales reached almost $1.38 billion, up 106% over 2020’s total.

Combined medical and adult use sales for December 2021 were $173.3 million, a 13.8% increase from combined medical and adult use sales of $152.2 million in November 2021, and up 99% over combined medical and adult use sales of $86.9 million in December 2020.

The number of items sold in December 2021 was 3.18 million, a 14.9% increase over items sold in November 2021. The average cost per item fell $0.25 to $43.35 in December 2021.

Per item average retail prices continue to fall as more competition and more and varied inventory comes to market at lower price points.

The Illinois Department of Public Health (IDPH), which oversees the state’s medical cannabis program, also issued patient numbers and sales figures for December 2021 this week. IDPH reported sales of over $35.4 million in December 2021, a 12.3% month-on-month increase over November medical sales of $31.5 million, but up just 2.7% from December 2021 sales of nearly $34.5 million. December 2021 medical sales hit their highest level since March 2021.

Retail sales of medical cannabis included $16.5 million in flower sales, representing 47.6% of total medical sales in December 2021. Medical consumers bought over $18 million of concentrates and infused products in December, a 12% increase over November’s $16.9 million figure.

Since inception, IDPH reports 188,017 patients approved for the program as of December 2021, versus 181,517 in November 2021, an increase of 6,500 qualified patients in the month. Year-on-year, the number of patient approvals for the program is up by 38,305.

IDPH reports 55 medical dispensaries served 70,178 unique patients who purchased nearly 1.3 million grams of dry cannabis in December 2021, versus 67,803 unique patients served in November 2021, who purchased over 1.1 million grams of dry cannabis.

Patients purchased an average of 18.4 grams of dry cannabis in December 2021, an increase of 1.7 grams over the 16.7 grams of dry cannabis purchased in November 2021. Patients paid an average of $12.79 per gram of dry flower in December, versus $12.94 per gram of flower in November 2021.

November 8, 2021

Over 34% of Cannabis Sales in Illinois Going to Out-Of-State Customers

Chicago Skyline
Photo: Ozzie Stern/Unsplach

The Illinois Department of Financial and Professional Regulation (IDFPR) published adult use sales figures for October 2021 this week. Adult use retailers sold over $123 million in the month of October, a 1.4% increase over September 2021’s sales.

Illinois residents represented $81.2 million, or 65.8%, of total sales, while out-of-state buyers purchased $42.2 million worth of legal cannabis products, or 34.2% of total sales. Total adult use sales, including in-state and out-of-state sales, are up 63.9% year-on-year; out-of-state sales have soared 105% year-on-year and in-state sales are up 48.4% year on year.

In 2020, the COVID-19 pandemic resulted in less travel, depressing sales to out-of-state purchasers. However, the proportion of total adult use revenues made up by out-of-state sales in October 2021 is comparable to February 2020, prior to the pandemic arriving in the U.S.

Items sold increased about 2% month-on-month but were up 77% year-on-year. The average price per item in October was $44.74, down $0.30 from $45.04 in September and down $3.58 from a year ago.

Illinois October Cannabis Sales

The Illinois average Spot price for 2021 was $217 higher than a year ago. Spot price remains in an uptrend amid significant consolidation of cultivation, multi-state demand, and a legal quagmire surrounding new licenses. When those new licenses are eventually granted, there will be more competition among sellers, but demand is unlikely to decline as long as contiguous states do not have legal markets.

In fact, wholesale demand will almost certainly increase with the opening of new retailers as there will be more stores serving consumers and more shelf space to stock. Given Illinois’ high population and relatively small number of licensed adult use retailers – 110 as of this writing – additional storefronts should boost sales significantly by expanding convenient access to the legal market, rather than diluting sales amongst existing stores.

Yet another lawsuit has created a delay in awarding Illinois cannabis licenses. The Chicago Tribune reports a Sangamon County judge has issued an order delaying the state from issuing deficiency notices to applicants that had not won the 75 license lottery held earlier this year. The state, amid accusations of inaccurate or unfair scoring, had offered potential licensees the chance to “cure” errors in their initial applications. Effectively, plaintiffs maintain the state should not allow applications to be cured. A hearing on this matter was scheduled for November 5.