Arizona Cannabis Sales Update Photo: 2H Media/Unsplash
June 29, 2022

The Arizona Department of Revenue (ADOR) published cannabis tax collections and estimated sales information for April 2022. Combined adult use and medical sales were $122.4 million in April, down 8.8% from an upwardly revised $134.3 million in March 2022 (previously $121.7 million) and down 7.9% from a downwardly revised $133 million (-$45,345) in April 2021.

April ushered in yet another increase in the adult use market’s share of total cannabis sales. April is the first month in which adult use sales constituted more than 60% of total revenues.

Arizona’s April 2022 medical sales, at $47 million, were down 1.3% from March 2022’s upwardly revised sales of $53.9 million (previously $49.2 million) and down 35% from a upwardly revised $72.9 million figure in April 2021 (previously $72.5 million). Medical sales’ share of the total was 38.5% in April 2022 against 54.5% in April 2021.

The Arizona Department of Health Services (ADHS) reported 212,083 qualifying patients in April 2022, down 7.3% from March 2022’s patient count of 228,763 and down 31.1% from April 2021’s patient count of 307,975.

In April 2022, ADHS reported 7,245 pounds of flower sold to patients, representing a 3.7% month-on-month drop in sales from March 2022, when 7,527 pounds of flower were sold. April 2022 flower sales to patients were down 40% from April 2021 sales of 12,070 pounds.

ADHS also reports on sales figures for edible products. April 2022 saw 141 pounds of these products sold to patients, representing an increase of two pounds over March 2022 sales, but a decrease of 46% or 117 pounds from April 2021’s sales.

ADHS reported 1,463 pounds of “marijuana other” (extracts and non-edible infused products) sold in April 2022. The sale of such products jumped 41% month-on-month. Year-on-year sales, however, were down 16% from April 2021’s sales of 1,743 pounds.

Combined sales volume in Arizona’s medical market in April 2022 was 8,849 pounds, up from 8,705 pounds in March 2022, but down 53% from sales of 14,072 pounds in April 2022.

Arizona adult use sales began in late January 2021. Cannabis prices rose steadily through April 2021 as the market adapted to the new demand. From July through fall 2021, indoor prices started rising again, peaking at $2,450 per pound. Greenhouse prices were relatively steady, trading in a $20 range between $1,643 and $1,663 per pound.

Both grow types started on a downward trajectory in late fall / winter 2021, a move that has been unabated for indoor-grown product. Greenhouse-grown flower has traded between $895 and $971 per pound since March 2022, but indoor prices have continued to crater, testing the $1,100 per pound handle. The continuing move lower by indoor prices is collapsing the spread between indoor and greenhouse to just over $200, from $870 in fall 2021.