Illinois Cannabis Sales Stall in April

May 9, 2023 · Green Market Report

Declining prices and out-of-state competition hurt the state’s industry.

This story was republished with permission by Crain’s Chicago and written by John Pletz

Illinois marijuana sales growth flattened last month for the first time since the state legalized recreational cannabis in 2020, hurt by declining prices and out-of-state competition.

April sales totaled $132 million, compared with $131.8 million in same period a year earlier, according to the Illinois Department of Financial & Professional Regulation.

The rate of year-over-year revenue growth in Illinois has been declining steadily for more than a year, as pricing has come under pressure across the industry and the number of new stores has stalled.

The number of marijuana products sold in the state during April was up 9% from a year earlier, roughly in line with the growth rate in March. Product sales growth, however, also has decelerated from double-digit rates seen through most of last year.

Pricing declines have occurred across the industry, as consumers have felt the squeeze of inflation elsewhere in the economy and have traded down to lower-priced products. Prices have fallen much more quickly in other states — such as Colorado, California and Michigan — where less-strict regulations allowed more companies into the legal market than in Illinois, which is one of the more restrictive markets.

Illinois also is feeling the impact of lower purchases from out-of-state residents since Missouri started recreational-marijuana sales in February. Total out-of-state sales dropped 21% year-over-year in April to $32.4 million. In-state sales increased nearly 10% to nearly $100 million.

Illinois also is hampered by slower-than-expected opening of new stores. The state issued 192 new dispensary licenses last year, but only 18 have opened since then. (Full Story)

In category:Business
Next Post

Weedmaps Loses $4 Million in Q1 Despite Increase in Clientele

Several cuts in the second half of 2022 contributed to a 27% improvement in operating costs. California-based WM Technology Inc., better known as Weedmaps, (Nasdaq: MAPS) shrank its losses to $3.9 million for the first quarter of 2023, from more than $31…
Previous Post

Missouri Cannabis Sales Reach $350M During First Three Months

Cannabis sales in Missouri have topped $350 million during the first three months of adult-use sales, the Missouri Independent reports. And while sales have remained strong, there was a slight dip in cannabis sales in April as adult-use sales fell about 3%…
Random Post

Trulieve Kickback Allegations Highlight Systemic Problems in Arizona

Trips to the Bahamas. Rolex watches. Expensive cars. Exclusive concert tickets. Or literally just bags of cash. Those are all ways used by independent marijuana brands in Arizona to buy their way onto dispensary shelves, according to several industry insiders,…
Random Post

Women of Influence: Laganja Estranja

Jay Jackson, who’s also known as Laganja Estranja, rose to fame as the undeniable breakout star on season six of the Emmy-winning RuPaul’s Drag Race. The world-renowned choreographer and artist is a fierce cannabis and LGBTQ+ advocate who champions diversity…
Random Post

Is Cannabis Giant Glass House Brands Acting as Double Agent for the Legal and Illicit Market? - Math Formulas May Prove It!

According to a lawsuit reported by Green Market Report, Glass House Brands Inc., operating under the name Catalyst, a California cannabis company based in Long Beach, has been accused of unlawfully transporting and shipping cannabis across state lines on airplanes.…
Random Post

Buy! Sell! Puff, Puff, Pass! - Wall Street Drops Drug Testing for Cannabis, What It Could Mean for Your 401k

Major Wall Street banks are forgoing drug testing for applicants, including marijuana, in a significant shift from customary standards. This trend mirrors wider shifts in legal and cultural views, as well as the rising acceptance of cannabis use in professional…