Ohio’s Cannabis Market Expected to Reach $2 Billion in Sales by 2027

COLUMBUS, Ohio (WCMH) — A national cannabis company predicts Ohio will be a $2 billion market by 2027, provided legislators do not make significant changes to existing marijuana laws.

Wholesale Cannabis Platform Highlights Ohio as a Key Growth Market

LeafLink, a wholesale cannabis platform that connects marijuana distributors and retailers, has identified Ohio as one of six expanding cannabis markets. The company projects that Ohio’s total cannabis sales will reach $2 billion within the next two years. This prediction follows Ohio’s rapid market expansion in 2024, during which monthly sales doubled after the commencement of recreational marijuana sales.

New Dispensary Openings Expected to Drive National Cannabis Market Growth

According to LeafLink, newly opened dispensaries in New York, New Jersey, Maryland, Ohio, Illinois, and Minnesota will significantly contribute to national cannabis market expansion. The company estimates that these six states alone will account for 75% of total U.S. cannabis sales growth by the end of 2027.

Neighboring Michigan’s Success Signals Ohio’s Market Potential

LeafLink pointed to Michigan’s cannabis market as the largest in the country, with retail sales averaging $327 per resident. In contrast, Ohio’s retail sales currently average just $58 per resident. This suggests that Ohio has significant room for growth, with its total sales equating to each resident spending $58 on cannabis products annually.

Projected Expansion of Dispensaries and Cultivators in Ohio

LeafLink anticipates substantial expansion within Ohio’s cannabis industry, predicting an increase in the number of dispensaries and cultivators over the next two years. In 2024 alone, Ohio averaged $5.2 million in sales per licensed dispensary, with 134 dispensaries operating across the state. The company expects Ohio’s cannabis sector to continue growing, with the potential for around 350 new dispensaries and 40 additional cultivators or processors entering the market by 2027. If existing dispensaries are granted licenses to open new storefronts, LeafLink predicts this could triple retail access for Ohioans.

Legislative Efforts Could Impact Market Growth

Despite Ohio’s current trajectory, some state lawmakers are seeking to slow the expansion of the cannabis industry. Competing bills in the House and Senate propose changes to the state’s recreational marijuana laws, including adjustments to tax revenue distributions, stricter regulations on public cannabis consumption, and reductions in the legal THC limit. Both bills also aim to cap the number of active dispensaries at 350, potentially limiting future market growth.

U.S. Cannabis Industry Could Gain 5,000 New Dispensaries by 2027

Beyond Ohio, LeafLink projects significant expansion across the U.S. cannabis industry. Between the six key states identified in its report, the company predicts the opening of approximately 5,000 new dispensary locations. This nationwide growth could further cement Ohio’s position as a central player in the country’s evolving cannabis landscape.

While legislative actions may influence the future of Ohio’s cannabis market, current projections suggest substantial economic opportunities if existing laws remain unchanged.