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Leisure hashish gross sales nonetheless smoking the medical market in 2023

3 min read

After almost $1.5 billion in gross sales in
2022, Arizona’s hashish market continues to be sturdy within the first
months of 2023, pushed by a rising leisure market.

Marijuana gross sales in Arizona proceed
to be a story of two markets, with leisure adult-use gross sales surging
and the medical marijuana market remaining in a freefall.

Leisure gross sales have greater than
doubled medical gross sales totals for the eighth month in a row, with
revenues hovering across the $80 million vary for greater than a yr,
whereas the medical market has hit file lows two months in a row, coming
in at lower than $30 million each months.

The latest Arizona Division of Income report
revised final December’s leisure gross sales totals up from $85.6 million
to $93.2 million, a brand new file that bested the $86.3 million reported
in November 2022.

Leisure gross sales totaled $84.1 million in January and almost $81 million in February.

In the meantime, medical gross sales dropped from
$34 million in December to $28.3 million in January 2023 after which $28.2
million in February.

Grownup-use gross sales started in January
2021, ushering in an exodus from Arizona’s medical marijuana program,
which voters created in 2010. The final time leisure and medical
gross sales have been wherever close to one another was October 2021, when adult-use
gross sales have been $65.8 million and medical gross sales have been $64.4 million.

Since then, the market has been
turned on its head and leisure has constantly outsold medical by
$50 million or extra every month.

Medical gross sales have declined almost
each month since April 2021, and the final time medical customers spent extra
than $50 million in a month was April 2022.

In 2021, medical marijuana gross sales
accounted for almost 55% — about $760 million — of the full. In 2022,
the leisure market represented almost 70% of gross sales, or greater than
$950 million, because the medical market crashed to barely greater than $500

Total, whole hashish gross sales for the reason that creation of authorized adult-use in January 2021 has topped $3 billion.

Tax revenues from hashish gross sales in January
hit an all-time excessive of greater than $25 million. For the primary quarter of
2023, marijuana tax collections totaled about $71.8 million, a ten%
enhance over the $65.1 million collected in the course of the first three months
of 2022.

The state collects 16% excise tax on
leisure gross sales along with the usual gross sales tax; medical
sufferers pay roughly 6% in state gross sales tax. Native jurisdictions cost
a further 2% or so for all marijuana gross sales.

One-third of leisure taxes
collected are devoted to neighborhood school and provisional neighborhood
school districts; 31% to public security — police, fireplace departments, fireplace
districts, first responders — 25% to the Arizona Freeway Consumer Income
Fund, and 10% to the justice reinvestment fund, devoted to offering
public well being companies, counseling, job coaching and different social
companies for communities which have been adversely affected and
disproportionately impacted by marijuana arrests and criminalization.

The Arizona Division of Well being Providers, which oversees hashish regulation within the state, releases month-to-month stories on the medical program which might be typically a month forward of ADOR stories.

The ADHS stories that, in March, there have been 127,892 qualifying sufferers cardholders, down from January’s whole of 128,621.

In January 2021, ADHS reported a complete of 299,054 qualifying sufferers, a quantity that has been dwindling month-by-month.

To this point within the first three months of
2023, Arizona hashish customers have bought 16,532 kilos of medical
marijuana in numerous varieties. In January 2021 alone, that quantity was
18,708 kilos.

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