Ohio cannabis sales are fueled by recreational marijuana – Medcan24

The story has been reprinted with the permission of Crain’s Cleveland Business.

Ohio’s legal marijuana industry generated $656,4 million in sales of marijuana in eight months after the launch of the adult-use program in August.

The Ohio Division of Cannabis Control recorded retail marijuana sales from August 6, when the recreational marijuana first became available in Ohio, by licensed dispensaries until April 5.

This total includes approximately $434.2 millions in sales for recreational products and about $222.2 in medical.

The adult market in Ohio is about 66%, which means it has been eight months since recreational cannabis was legalized.

The state doesn’t follow calendar dates when reporting sales.

That activity compares relatively closely with the February sales period — specifically Feb. 2 through March 1 — which included approximately $55.7 million and $22.2 million in rec and medical sales, respectively, or more than $77.8 million in total.

Retail prices have been steadily declining since August last year, and the market continues to grow.

DCC reports that during the first week in which cannabis flowers were sold for adult use, they averaged $26.59/tenth of an inch and $9.40/gram. Average price of the manufactured products was $31.06.

Between the week of March 30 through April 5, prices on average for cannabis flower stood at $19.77 per one-tenth of an ounce — a nearly 26% decrease since early August — and $6.99 per gram. On average, manufactured products cost around $28.57.

In Ohio, the first legal cannabis sold under the medical program was in January 2019. The state’s marijuana sales have topped $2.5 billion since then.

The market in Michigan is a fraction the size, even though it continues to grow. Of course, that market is grappling with some challenging industry dynamics, including an over-supply of product and business licenses. These factors are responsible for the failure of many businesses and the low prices that legal cannabis is sold at in Canada.

The average retail price of flower was $85.55 an ounce according to Michigan’s Cannabis Regulatory Agency.

Michigan, however, has only generated just under $2 billion of licensed cannabis sales within the first three month of this year.

It’s an egregious contrast from Ohio, where the cannabis industry has seen sales of $2.5 Billion in just six years.

Ohio’s legal marijuana industry clearly loses a large chunk of its business to Michigan, as customers here are crossing the border in search of cheap products.

The Drug Enforcement Policy Center at the Ohio State University’s Moritz College of Law noted this in its 2024 cannabis customer survey and analysis of the medical marijuana program. In the survey, 34% of respondents admitted to visiting dispensaries outside their state for medical marijuana.