Cannabis Sales Growth Lifts in June

Cannabis sales have shown a significant rebound, with a 1.9% sequential increase in May. This development marks a notable recovery following a decline in January, which was then followed by modest rebounds in February. The recent lift in sales indicates a positive trend for the cannabis market, with many attributing this growth to the sector’s capacity for adaptation and resilience.

Market Stabilization and Price Rebounds

Wholesale cannabis flower prices have started to stabilize in several oversupplied markets, such as Oregon and Oklahoma. These regions have experienced year-over-year price rebounds of 0.2% and 5.9%, respectively. Meanwhile, Michigan has seen a more significant recovery, with wholesale cannabis flower prices rebounding by over 13% year-over-year. This can be attributed to companies rightsizing their yields to align with current market demand.

New and emerging markets, including Illinois, Maryland, Minnesota, New Jersey, New York, and Ohio, are anticipated to drive substantial retail sales growth over the coming years. Illinois stands out for experiencing significant retail growth, benefitting from a maturing market and increasing consumer acceptance. Additionally, Maryland has witnessed a dramatic increase in wholesale cannabis prices, surging more than 125% over the past year, primarily due to operators leveraging the new adult-use market.

Cannabis Industry Projections and Impact

The cannabis industry is projected to reach nearly $40 billion in revenue by 2024, according to Statista. This growth is expected to be spurred by increasing legalization and consumer adoption. The expanding market, which now includes adult-use cannabis legalization in 24 states, enjoys robust support, with a record 70% of Americans in favor of legalization.

Interestingly, cannabis dispensaries have been linked to positive impacts on local real estate markets. A study has shown that dispensaries can increase home values by an average of 2 percentage points. This finding counters previously held beliefs that cannabis retailers negatively impact property values, showcasing the beneficial side effects of this burgeoning industry.

Furthermore, the legal cannabis industry continues to be a significant source of employment, supporting 440,445 full-time equivalent jobs. Recent trends also indicate a rebound in the representation of women and minority executives within the cannabis sector, reflecting broader diversity and inclusion initiatives. Overall, the cannabis industry’s growth and evolving dynamics underscore its critical role in the economy and society at large.