Cannabis Sales Update: October Was Weak Overall, But Not In Florida

Cannabis sales decreased by 0.5% in October compared to September while, "at a per-day basis, sales decreased 3.7% month-over-month," according to New Cannabis Venture's Alan Brochstein, citing BDSA data.

“In total, sales across the 11 markets totaled $1.64 billion during the month,” Brochstein wrote.

Read on for a look at both Eastern and Western markets.

Eastern Markets

“Note that Florida, Maryland, and Pennsylvania are medical-only markets,” Brochstein noted. Moreover, In September, “year-over-year growth ranged from -16.2% in Maryland to 34.3% in Florida,” the analyst wrote.

Florida: “Sales grew at a more rapid rate in October than in September, increasing from 24.9% to 34.3%, the highest annual growth yet and a record of $201.6 million,” according to the report.

Also, “flower sales grew 28%, pre-rolls increased 28%, ingestibles gained 38%, and concentrates expanded 43% year-over-year.”

Moreover, in Illinois, where according to recent data released by the state “sales grew 0.7% from September and increased 6.6% from October 2021,” BDSA estimated sales of $160.1 million, up 0.8% sequentially and 3.1% from a year ago, added Brochstein.

Maryland: Sales fell again, "increasing 0.1% from August to $38.4 million, down 16.2% from a year ago.”

Massachusetts: Sales “slipped 0.5% sequentially and decreased 0.7% compared to a year ago to $148.0 million.”

Michigan: In October compared to September, state cannabis sales fell 1.2% and increased 28.1% from a year ago to $209.4 million, “down 1.2% sequentially and up 27.3% from a year ago."

Pennsylvania: Sales “declined 0.6% in October to $92.1 million, down 10.3% compared to a year ago.”

Western Markets

“In September, YoY growth ranged from -23.7% in Nevada to -5.5% in California compared to a year ago,” reads the BDSA report which provides coverage for Arizona, California, Colorado, Nevada, and Oregon.

Arizona: Combined sales of $107.9 million increased 2.1% from September, down 5.7% compared to October 2021. Sales of marijuana in Arizona soared to $1.6 billion in 2021, just one year after recreational cannabis was legalized in the state.

“Medical sales of $39.9 million were up 2% sequentially and down 30% from a year ago,” reads the report. “Adult-use sales of $68.0 million gained 2% from September and 19% year-over-year.”

However, the crop is far from being added to the traditional “5 C’s” of Arizona’s economy, experts said, as production still trails far behind other states, reported Tucson, a local outlet.

“We don’t see SWAT teams busting in the doors of dispensaries,” said Aaron Smith, CEO of the National Cannabis Industry Association. “But we do have problems with not being able to take tax deductions like a normal industry, or being able to have interstate commerce, which really creates a barrier to entry for a lot of folks.”

The Arizona Department of Revenue revealed that state sales brought in $221.3 million in taxes in 2021, and sales in 2022 were on pace to eclipse that number, with $196.4 million in taxes in the first nine months of the year.

According to an industry research group, legalization made Arizona second only to California for retail sales that year.

Moreover, in the Golden State “sales fell 2.8% sequentially to $399.1 million and decreased 5.5% compared to a year ago,” Brochstein noted. “Flower sales were down 15%, while pre-rolls grew 9%. Ingestibles gained 4% and concentrates fell 3% year-over-year.”

Meanwhile, in Colorado, sales declined 2.7% in October compared to September, dropping 19.0% from a year ago to $142.9 million. By its part, Nevada sales increased 12.6% sequentially, falling 23.7% from a year ago to $65.5 million. Flower sales dropped 28% from a year ago. Concentrates fell by 17%, while ingestibles decreased by 22% and pre-rolls declined by 20%.

Finally, in Oregon "sales in September fell 2.0% from September to $79.4 million, down 21.2% from a year ago," concluded Brochstein.

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Photo: Courtesy Of Maxim Hopman On Unsplash