Ohio’s Cannabis Market Reaches $76M, Yet Michigan Still Leads

Ohio Recreational Cannabis Sales Hit $22.5M in First 12 Days, Totaling $76.3M by September

Ohio’s recreational cannabis industry is booming, with sales reaching over $22.5 million in just the first 12 days after recreational marijuana dispensaries opened their doors on August 6, 2024. As of the end of September, the total sales have soared to $76.3 million, a promising start for the newly legalized market.

In addition to the recreational sales, Ohio’s medical marijuana program contributed an additional $16 million, reflecting the continued demand for both medical and recreational cannabis. Over the course of less than two months, Ohio’s legal cannabis market has sold 8,813 pounds of plant material and 1.2 million units of manufactured products, such as edibles and concentrates, through the state’s 124 dual-use dispensaries, which serve both medical and recreational consumers.

Ohio’s Cannabis Market Gaining Momentum

Ohio’s decision to legalize recreational marijuana last November has quickly translated into significant consumer interest. Dispensaries across the state have seen a sharp increase in foot traffic, with many reporting much higher demand than anticipated.

Zach Gergich, a representative from Nectar, a dispensary in Bowling Green, Ohio, expressed enthusiasm about the initial sales boom. “We’re five to ten times busier here depending on the day,” Gergich said. “We’ve been crushing it up here.” Despite this success, Ohio’s cannabis industry still faces challenges as it continues to develop its supply chain and adjust pricing structures to compete with more established markets.

Neighboring Michigan: A Well-Established Competitor

Ohio’s legal cannabis market is growing steadily, but its northern neighbor, Michigan, remains a formidable competitor. Michigan, which legalized recreational marijuana in 2019, continues to see record-breaking sales, with August alone bringing in $295.4 million. While Ohio’s legalization is still in its early stages, Michigan has had several years to refine its processes, build a robust supply chain, and offer more competitive pricing.

One Ohio resident from a Cleveland suburb explained why Michigan remains an attractive option for cannabis consumers. “Frankly, it is still worth it for me to drive to Michigan to buy cannabis,” they told Benzinga. “Marijuana prices here [in Ohio] are still much higher than in Michigan. So it’s cheaper even after I pay for gas to drive both ways.”

The price difference between the two states is largely due to Michigan’s more established market and greater availability of licenses for growers and processors, which helps to drive down prices. As Ohio’s cannabis industry expands and more growers and processors enter the market, prices are expected to become more competitive.

Ohio vs. Michigan: The Cannabis Battle Heats Up

Although Ohio is off to a strong start, the sales numbers show that it is not yet outpacing Michigan’s well-oiled cannabis industry. Michigan’s $295.4 million in sales for August alone highlights the gap between the two markets, but Ohio’s $22.5 million in just 12 days demonstrates the potential for significant growth.

Dispensaries like Nectar in Ohio are optimistic about the future. “We think it’s only going to get more competitive,” Gergich said. “We’ll see more licenses pop up for growers and processors, and as more product becomes available, we should hopefully see prices fall a little bit, which will make Ohio more competitive in that range.”

Ohio cannabis businesses are banking on increased production and a growing number of licensed operations to drive down costs and attract more customers who might otherwise look to Michigan for cheaper alternatives.

Room for Growth in Both States

Despite the competition between Ohio and Michigan, there seems to be plenty of demand for cannabis in both states. Ohio’s burgeoning market is showing great promise, but it faces several hurdles before it can catch up to Michigan’s dominance. Nevertheless, Ohio has the potential to grow substantially as it continues to issue more licenses and establish itself as a regional player in the cannabis industry.

Ohio’s $76.3 million in total sales by September, coupled with Michigan’s continued growth, signals that the Midwest cannabis market is thriving, with plenty of room for expansion in both states.

The Road Ahead for Ohio’s Cannabis Industry

Looking ahead, Ohio’s cannabis industry will need to focus on scaling production, increasing the number of licensed dispensaries, and reducing prices to remain competitive. As more businesses receive licenses and begin operating, Ohio’s market will likely see increased competition, which could lead to lower prices and better options for consumers.