Legal adult-use cannabis sales launched earlier this month in Ohio, and strong sales numbers do not appear to be subsiding. According to local reporting by WKBN, “over the first 19 days — $32.9 million worth of recreational marijuana has been sold — or an average of $1.7 million a day.”
“Meanwhile, since July 1, sales of medical marijuana have dropped 19 percent. Still, together both medical and recreational marijuana sales last week in Ohio were $18.4 million.” the media outlet reported.
Ohio, which has a population of roughly 12 million people, became the 24th state to adopt an adult-use cannabis legalization measure in late 2023. The launch of legal recreational sales was greatly anticipated by consumers in the state, as well as in surrounding states.
In the first five days of legal recreational cannabis sales, Ohio’s legal industry sold roughly $11.5 million worth of products, including an estimated 1,200 pounds of cannabis flower.
The United States adult-use cannabis industry has generated over $20 billion in total tax revenue since the first legal recreational cannabis purchase was made in Colorado on January 1st, 2014 according to a report by the Marijuana Policy Project.
“Through the first quarter of 2024, states have reported a combined total of more than $20 billion in tax revenue from legal, adult-use cannabis sales. In 2023 alone, legalization states generated more than $4 billion in cannabis tax revenue from adult-use sales, which is the most revenue generated by cannabis sales in a single year.” the Marijuana Policy Project stated in a press release.
Ohio’s legal cannabis industry is expected to generate a considerable amount of taxes and fees now that regulated recreational sales have launched.
“The state is estimating that tax revenue could be up to $206 million a year. Recreational marijuana products will be taxed 5.75% in state sales tax, and an additional 10% excise tax.” stated 10WBNS in its local coverage. The revenue is earmarked for 4 funds according to the local media outlet:
- 36% of the funds will go towards cannabis social equity and jobs fund.
- 36% will go toward host community cannabis fund.
- 25% to substance abuse and addiction fund.
- 3% to the Division of Cannabis Control and tax commissioner fund
79% of people living in the United States lived in a county with at least one regulated cannabis dispensary according to an analysis by the Pew Research Center. The Pew Research Center also found the following:
- 74% of people in the U.S. live in a state where recreational or medical cannabis is legal
- There are nearly 15,000 cannabis dispensaries in the U.S.
- California has the most overall dispensaries (3,659)
- Oklahoma has the most dispensaries per capita (36 dispensaries for every 100,000 residents)
Total legal cannabis sales in the United States are expected to reach $31.4 billion in 2024 according to a recent analysis by Whitney Economics. Additionally, leading cannabis jobs platform Vangst, in conjunction with Whitney Economics, estimates that the legal cannabis industry now supports 440,445 full time-equivalent cannabis jobs in the United States.
Whitney Economics also projects the following legal cannabis sales figures in the United States for the coming years:
- 2024: $31.4 billion (9.1% growth from 2023)
- 2025: $35.2 billion (12.1% growth from 2024)
- 2030: $67.2 billion
- 2035: $87.0 billion
The emerging legal cannabis industry in the United States is projected to add roughly $112 billion to the nation’s economy in 2024 according to an analysis by MJBiz Daily. The projection is part of the company’s 2024 MJBiz Factbook.
“The total U.S. economic impact generated by regulated marijuana sales could top $112.4 billion in 2024, about 12% more than last year,” MJBiz stated in its initial reporting.