Ohio Dispensaries Record $44 Million in First Month of Adult-Use Cannabis Sales

Ohio’s cannabis industry has kicked off its adult-use sales with a strong showing, recording more than $44.05 million in marijuana sales during August, according to the latest figures from the Ohio Division of Cannabis Control (DCC). This significant milestone marks the state’s first month of recreational cannabis sales, which began on August 6, 2023.

Cannabis Sales Surge in Ohio

Despite not representing a full month of retail activity, the impressive $44 million figure reflects a robust demand for adult-use marijuana. Tom Haren, spokesperson for the OHCANN trade group and a key figure behind last year’s successful Issue 2 adult-use cannabis referendum, praised the performance.

“That is $44 million that we took out of the illicit market and away from Michigan dispensaries,” Haren said. “I think it was a terrific first month.”

The final week of August saw $11.08 million in adult-use sales, helping to further boost the monthly total. On average, Ohio dispensaries sold approximately $1.69 million worth of recreational marijuana per day throughout August.

Strong Start, Consistent Sales

The first week of adult-use sales in Ohio was especially strong, with an average of $2.3 million in sales per day between the initial Tuesday and Saturday. In the following weeks, sales settled to a steady pace, averaging $1.5 million to $1.58 million per day.

Had sales continued at the daily average rate across a full month, Ohio could have recorded close to $54.19 million in adult-use marijuana sales for August. Regardless of the exact total, the state’s performance stands out compared to other markets that have launched adult-use programs.

Comparisons to Other States’ Launches

Ohio’s first month of recreational cannabis sales surpasses that of several other states when they first launched their adult-use programs. For instance:

• Michigan reported $7 million in adult-use sales during December 2019, its first month. However, Michigan only had five adult-use retailers at the time, and some ran out of supplies.
• Illinois saw $39 million in adult-use sales in January 2020, its first month. Like Michigan, Illinois faced product shortages that limited its sales potential.

By contrast, Ohio entered the market with nearly 100 active dispensaries and no significant product shortages, positioning the state for a successful rollout.

Medical Cannabis Sales in Ohio

While recreational sales took off, Ohio’s medical marijuana market remained strong. Between August 6 and the end of the month, the state recorded $31.59 million in medical marijuana sales, or approximately $1.21 million per day. This illustrates that Ohio’s medical market continues to be a significant component of the overall cannabis landscape.

Industry Leaders Pleased with Initial Performance

Operators and industry leaders are generally pleased with the first month of recreational marijuana sales in Ohio, especially given the minimal marketing and limited lead-up to the launch.

“We’re just 26 days in, and consumers are just dipping their toes in the water with legal cannabis for the first time, so this is a solid launch right out of the gate,” said Jason Erkes, spokesperson for Cresco Labs, which operates the Sunnyside brand of dispensaries. “With a minimal ramp-up period and no marketing or advertising, the revenue numbers are beyond impressive and will continue to grow as more stores open and more awareness builds about legal cannabis across the state.”

The Future of Ohio’s Adult-Use Cannabis Market

Looking ahead, industry experts are optimistic that Ohio’s adult-use market will continue to grow. Haren expects the market to expand as consumers become more familiar with legal cannabis, additional retailers open, and prices become more competitive.

“As more retailers open and prices come down, we expect to see even stronger growth in Ohio’s adult-use cannabis market,” Haren said.

Cannabis Prices Begin to Stabilize

According to the latest data from the DCC, the average pre-tax price for marijuana flower in Ohio during the last week of August was $25.46 per one-tenth of an ounce (often referred to as a “day unit”) and $9 per gram. This is a slight decrease from the start of the month when prices averaged $26.59 per one-tenth of an ounce and $9.40 per gram.

Ohio’s Growing Cannabis Market

Ohio’s first month of adult-use sales shows that the state’s cannabis industry is poised for continued growth. With no product shortages, nearly 100 active dispensaries, and strong demand, Ohio’s market is already showing signs of success. As more dispensaries open and prices stabilize, the state is likely to see even higher sales figures in the months to come.