Missouri cannabis industry in full swing with recreational sales

Missouri retail cannabis stores opened their doors legally a month ago, in hopes of catching up to states that have already cashed in on the ever-expanding cannabis industry, and making a dent in the illicit cannabis market.

According to the Missouri Department of Health and Senior Services Section for Medical Marijuana Regulation, medical marijuana sales increased from around $9 million in sales to over $640 million from January 2021 to January 2023. With recreational cannabis now available, experts expect an increase in revenue similar, and indeed exceeding, that seen on the medical cannabis side.

Big revenue ahead for Missouri’s cannabis industry

Missouri approved adult-use cannabis on November 8, 2022, after voters supported a ballot initiative that legalized possession, home growing, and recreational use. The measure made licenses available for medical cannabis facilities to convert to cannabis cultivation for recreational use. In January of this year, application forms for personal cultivation were made available to the public. The state’s program rules were finalized this month, making legal recreational cannabis available at licensed dispensaries on February 3, 2023, with total recreational sales being reported at $8,500,900, and $4,189,064 in medical sales, for a combined total of more than $12.5 million in the first weekend.

There are 212 licensed medical cannabis dispensaries in the state; nearly all of them applied for a license to sell recreational cannabis when the legal framework was established. Many dispensary owners expect to double their sales. Jason Berkenstock, vice president of a Michigan-based cannabis retail company operating in Missouri, anticipates “approximately a 2X lift in sales velocity with the flip to adult use.”

Experts estimate the Missouri recreational cannabis industry could generate over a half-a-billion in sales in its first year, and between $800-900 million in the next four. With much of the market having existed underground before legalization, the hope is that many legacy operators will join the legal cannabis market and cash in.

February Cannabis Sales in Missouri

Similar to how other States have performed, the first month of sales data shows a resounding increase in cannabis sales. The chart below shows the first month of legal recreational cannabis in Missouri topped 70 million, with another 31.2 million on the medical market.

With a combined total of more than 100 million in sales in the first month, we can expect the year-end average to top the half-billion estimates in 2023. Depending on how many patients and recreational users opt to grow at home – home applications for cultivation licenses began February 3rd alongside recreational sales – we can generally expect a similar return as other states across the country.

Missouri paves way for other red states to make recreational weed legal Beyond its own residents state-wide, Missouri can expect a swell of new cannabis buyers from its eight bordering states, some of which still prohibit recreational cannabis. A neighboring state with a legal cannabis industry will likely add a new attraction to Missouri’s tourism industry as well, contributing to the state’s economy in multiple ways. Of course, travel across state borders with cannabis remains illegal.

It remains to be seen if Missouri’s legal cannabis sales will meet predictions, but the future of cannabis legalization in red states is a great deal dependent on the success of Missouri’s move to legalize adult use. While traditionally opposed to cannabis legalization, seeing a thriving new industry that floods a neighboring conservative state with new tax revenue may motivate some conservative leaders to consider trying something similar in their own states.

Where the grass IS greener.

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Missouri Recreational Cannabis Sales: Statistics and expectations

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