The Massachusetts Cannabis Control Commission issued adult use retail sales data for January 2022 on its Open Data platform. The state reported sales of $112.6 million in January versus a downwardly revised $127.2 million in sales in December 2021, reflecting an 11.5% decrease month-on-month. Year-on-year, January sales were up by 29.4% versus January 2021 sales of $87.1 million. Average daily sales were $3.6 million in January, an 11.5% drop from the downwardly adjusted average daily sales of $4.1 million in December 2021.
As noted previously, 2021 total adult use cannabis sales were $1.33 billion, up over 90% from 2020’s sales of almost $700 million.
The CCC also provides information on the number of licensed cannabis businesses in the state with permission to operate. At the end of January 2022, there are 73 cultivator licenses (up one from December 2021), six courier licenses, eight independent testing laboratories, two transporter licenses (combined with other existing marijuana establishment licenses), four micro business licenses, one with a delivery endorsement. There are 56 Product Manufacturing licenses and 194 retail licenses (up three from December 2021). With an over-21 population of 4.5 million people – greater than the entire population of Oregon – there is still ample room for every form of cannabis business in Massachusetts.
Per Ounce Retail Prices
The CCC reports the average price per ounce fell from $371.66 in December 2021 to $367.50 in January 2022. The highest per ounce price for 2021 occurred in November at $380.38 per ounce and the lowest price per ounce for 2021 was recorded in October at $362.49. The extrapolated retail pound price ranged from $5,800 per pound in October 2021 to $6,086 per pound in November 2021.
Massachusetts’ Spot has tanked since mid-January 2022, losing over 17% in just a few weeks time. While the number of licensed cultivators has only increased by one since December, cultivators who gained permission to operate earlier in 2021, and who are entering the adult use system from outside the original group of vertically integrated medical businesses – are likely seeing their initial crops come in, or are beginning to produce at scale. Based on reports from other states, some may have put their first harvests into the market at steep discounts in an effort to gain market share.
The CCC reports adult use Plant Activity and Volume and it is clear there has been a substantial increase in the Plant Harvested Count: In January, the number of plants harvested was just over 46,000 versus about 40,500 in December. Year-on-year, January 2022’s harvested plant count is up substantially, from about 32,700 in January 2021. The CCC’s plant activity data also indicates that there was a notable outdoor crop grown in Massachusetts in 2021, with harvested plant totals peaking at 56,275 in October last year, which is also likely weighing on price.