Rhode Island Sees Record Adult-Use Marijuana Sales As Medical Purchases Fall To Lowest Since Recreational Market Launched

October 14, 2023 · marijuanamoment.net

Rhode Island’s licensed marijuana retailers sold more adult-use cannabis than ever in September, according to newly released state numbers. Overall sales, however, fell just a hair short of a $9.67 million monthly record in August due to a drop in medical cannabis purchases.

September sales of recreational cannabis products totaled $7,116,727.00, according to the latest numbers from the Rhode Island Department of Business Regulation. That’s the greatest amount since legal sales to adults launched in December 2022. Medical marijuana receipts for last month came to $2,516,624.54, a record low since adult-use sales began.

All told, Rhode Island’s reported total marijuana sales for the month were $9,633,351.50. That’s just shy of the $9,672,793.26 the state reported for August, which was the fourth consecutive month of record marijuana sales by licensed stores.

Those monthly retail totals reported by the state, however, don’t match up precisely with the sum of reported medical and recreational sales. In September the difference between the two numbers was just $0.04, but in August it amounted to $2,000.12. In fact none of the monthly sales figures equal the sum of their component medical and adult-use parts, in amounts ranging from nearly $70,000 above the expected total to more than $124,000 below.

Asked about the discrepancies posted on the state’s sales tracker, an official at the Office of Cannabis Regulation told Marijuana Moment that the auditor who would field those questions was out of town and unavailable until early next week.

In terms of product types by item, September had record sales of cannabis concentrates and pre-rolls. Edibles, pre-packaged flower, tinctures, topicals and vape carts, meanwhile, all saw lower numbers compared to August.

The number of active registered medical marijuana patients also fell to 10,817—down almost a third from the 15,062 active patients in December 2022, when adult-use sales launched.

This past August, Rhode Island’s governor and leaders of the House and Senate announced their appointments to the state’s Cannabis Advisory Board. The 19-member panel works with the Cannabis Control Commission to issue recommendations

Regulators on a listening tour in the state that month also heard from advocates who called for equity and other adjustments to industry rules.

Meanwhile, some workers in the marijuana industry have been pushing to unionize.

Across the country, many relatively new state markets have seen record-breaking sales numbers this year.

In Illinois, for example, officials recently touted the industry’s “unprecedented growth” in fiscal year 2023, with regulated stores selling more than $1.5 billion in marijuana products. In September, stores in the state sold more individual cannabis products than during any prior month.

Connecticut, meanwhile, tallied more than $25 million in total sales in September, besting a record set the previous month.

Licensed retailers in Maryland, sold a record amount of adult-use cannabis products in September although medical marijuana sales fell.

In New Mexico, monthly sales in September narrowly missed a monthly sales record set in August as the state crossed the half-billion-dollar mark in total adult-use sales.

August was also a record-setting month in Rhode Island, which sold its highest amount of cannabis for the fourth consecutive month, notching $9.7 in monthly receipts.

Purchases of adult-use cannabis in August also broke a record ($23.7 million) in Montana, state officials reported, although medical marijuana sales were at their lowest ($5.0 million) since recreational markets opened early last year.

In Maine, too, marijuana sales reached a record high in August, with nearly $22 million worth of purchases, according to recent data from the state Office of Cannabis Policy (OCP).

Early last month, Massachusetts officials reported that retailers have now sold more than $5 billion in adult-use marijuana since the state’s recreational market launched five years ago. Sales reached $139.3 million in August alone, with the year-to-date total at $1.05 billion within the first eight months of 2023.

Michigan marijuana sales also reached another record high in July, with nearly $277 million worth of cannabis sold.

In Missouri, meanwhile, retailers have been selling about $4 million worth of marijuana per day on average since the state’s adult-use market opened up in February—and the state saw a record $121.2 million in cannabis purchases in June.

In Colorado’s more mature marijuana market, retail and medical marijuana sales have been slipping in recent years, down from a peak during the heights of the pandemic, though regulators announced this week that the state has passed the benchmark of more than $15 billion in legal marijuana sales since the adult-use market launched,. Annual sales peaked in 2021, when they reached about $2.2 billion, but have since declined and largely leveled out in the past two years.

Earlier this month, the U.S. Census Bureau published a map detailing how much of each state’s total revenue comes from legal marijuana activity. In some states, such as Oregon, cannabis at times has provided $1 out of every $20 in tax money received by the state. For Rhode Island, however, the latest available data comes from late 2022, at which point cannabis revenue made up just 0.13 percent of the state’s revenue.

Late last month the bureau published a report showing that legal cannabis states had collected more than $5.7 billion in marijuana tax revenue over an 18-month period, a figure it intends to update quarterly going forward. The agency also recently updated its survey of private businesses to better capture marijuana-related economic activity.

Together, the new tracking and reporting efforts—which come nearly a decade after the first state-legal sales of adult-use cannabis in the United States—indicate an increasing willingness by the federal government to acknowledge the billions of dollars flowing into state coffers annually as the result of state-level marijuana legalization, even as the substance remains federally illegal. (Full Story)

In categories:Business Medical
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