Maryland’s Total Retail Cannabis Sales Top $700 Million In 2023

With the legalization of adult-use cannabis sales in July 2023, the cannabis industry experienced a significant increase in Maryland’s total retail cannabis sales, with over $700 million in sales.

This milestone is not only a testament to the progress of Maryland’s cannabis industry but also highlights its potential for economic growth and social equity.

Let’s explore how the launch of adult-use sales has impacted cannabis sales in the state and what it means for the future of Maryland’s cannabis market.

In 2014, the State of Maryland legalized medical cannabis with the passage of House Bill 881 and established the Maryland Medical Cannabis Commission (MMCC). However, it wasn’t until the 2022 General Election that Maryland voters approved a ballot referendum to allow adult-use cannabis sales starting July 1, 2023.

This marked the official launch of the state’s adult-use market, expanding opportunities for both consumers and businesses. With this new legislation in place, Maryland joined over a dozen other states that have legalized recreational cannabis use for adults. This decision was met with much excitement and anticipation as it opened doors to a thriving industry in Maryland.

Impact of Adult-Use Sales on Total Retail Cannabis Sales in Maryland

The launch of adult-use sales in July 2023 has had a significant impact on total retail cannabis sales in Maryland. In the first year alone, the state’s cannabis industry generated over $700 million in retail sales, showcasing its potential for growth and success.

To put this number into perspective, let’s compare it to the sales data from the medical cannabis market. In 2023, the total retail sales for medical cannabis in Maryland were reported at $464 million per the MCA Medical and Adult-Use Cannabis Data Dashboard for the whole year. Looking at the reported adult-use sales for 2023, adult-use cannabis brought in over $331 million.

The catch is that this was only after six months of sales instead of a full year of recorded sales, like the medical cannabis numbers. Additionally, the sales of adult-use set new records every month from July to December. In July, the first month of adult-use sales brought in $51 million, by December adult-use sales totaled over $61 million for the month.

Per the MCA Medical and Adult-Use Cannabis Data Dashboard, total medical and adult-use sales in the state accounted for $796 million in total retail sales. Total sales for 2022 (medical only) were $500 million. It is evident the legalization of adult-use sales has energized the cannabis industry in Maryland.

SunMed Growers in Cecil County says their sales have doubled since the legalization. The company started in 2018 and spent $100 million to set up its facility and 60-acre farm. 

SunMed President Jake Van Wingerden told CBS News Baltimore that the sales will now help them pay the debt they’ve accumulated and increase staff salaries. 

“Once legalization happened we were able to stabilize and a lot of our projections came true,” Van Wingerden said. “We recently at SunMed gave the entire staff a 5-dollar-an-hour raise across the board. So, we were very excited to be able to reinvest back into our team and our people.” 

Allocation of Tax Revenue from Cannabis Sales

The success of adult-use cannabis sales in Maryland not only benefits businesses and consumers, but also the state’s economy and social equity initiatives. In the first quarter of adult-use sales alone, between July and September 2023 it was reported that $12 million in tax revenue was generated. This revenue is distributed among various funds that support different aspects of the state’s economy and community.

35% of the tax revenue goes towards the Community Reinvestment and Repair Fund, which aims to support communities disproportionately harmed by marijuana prohibition. This fund will help address the impact of past criminalization and provide resources for communities to thrive.

An additional 5% goes towards Maryland counties, providing them with much-needed funds for their local areas. Another 5% is allocated to the Cannabis Public Health Fund, which supports programs related to public health education, research, and substance abuse treatment. Additionally, 5% goes towards the Cannabis Business Assistance Fund, which provides resources for small businesses in the cannabis industry.

The remaining 50% of the tax revenue goes toward the state’s general fund, which supports a variety of initiatives and programs for the overall benefit of Maryland. This includes education, public safety, and health services.

Expansion and Diversification Efforts in Maryland’s Cannabis Industry

The success of adult-use cannabis sales in Maryland has sparked initiatives to further expand and diversify the industry. This includes efforts to issue new licenses exclusively for social equity businesses, providing opportunities for individuals from marginalized communities to enter the cannabis market.

In September, the state announced a licensing round that includes 75 dispensaries, 16 growers, and 32 processor licenses. This will more than double the number of legal retailers in the state, as currently, only existing medical marijuana dispensaries are able to serve adult consumers.

This expansion and diversification not only benefits the industry but also local communities. By providing opportunities for social equity businesses, it promotes economic growth and job creation in communities that have been disproportionately affected by the war on drugs. It also allows for a more diverse range of products and services within the industry, catering to a broader audience.

In addition, these efforts help to combat the issue of racial disparities within the cannabis industry. By prioritizing social equity applicants in the licensing process, Maryland is taking steps towards a more fair and inclusive industry.

Future Growth Potential for Maryland’s Cannabis Industry

The future of the cannabis industry in Maryland looks promising, with no signs of slowing down. Since the start of adult-use sales in July 2023, the state has been setting new sales records every month. With this trend, it is predicted that total retail sales could exceed $1 billion by 2024.

This growth not only benefits businesses and consumers, but also has the potential to bring significant economic benefits to the state. The cannabis industry creates jobs, generates tax revenue, and stimulates local economies. It also provides opportunities for social equity initiatives, such as promoting diversity and providing resources for marginalized communities.

As the industry continues to grow, it is important for Maryland to prioritize social equity and inclusivity in its policies and regulations. By doing so, the state can ensure that all members of society are able to reap the benefits of this booming industry. With a strong focus on equity and responsible growth, Maryland’s cannabis industry has the potential for tremendous success in the future.

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