Summary: Arizona cannabis sales has achieved a significant milestone, surpassing $1 billion in sales in the year up to September 2023. This growth is attributed to a shift from medical to adult-use cannabis, with recreational sales now dominating the market.
Arizona Cannabis Sales Exceed $1 Billion with Shift Towards Recreational Use
According to the Arizona Department of Revenue (ADOR), the total cannabis sales in Arizona reached nearly $1.1 billion in the year-to-date, marking a significant shift in the industry from medical to adult-use. This change is evident in the sales figures, where adult-use sales accounted for nearly three times the amount of medical cannabis sold during the same period.
Medical cannabis sales have seen a decline, reaching an all-time low of $267 million. From August to September, medical sales fell from $28.8 million to $27 million, the lowest since the commencement of adult-use cannabis sales in January 2021. This decline has been consistent since a peak of $73.4 million in April 2021.
In contrast, adult-use sales have been robust, topping $797 million in the year to September. Although there was a slight drop from $85.8 million in August to just above $80 million in September, the overall trend shows a growing preference for recreational cannabis.
The shift in market sizes has been expanding since October 2021, when recreational sales first overtook medical sales. This trend is also reflected in the number of medical cannabis patients, which decreased from 123,796 in September to 121,047 in October, less than half the size of the market in January 2021 (299,045).
Despite the changing dynamics, both sectors continue to contribute significantly to state tax revenues. The 16% excise tax on recreational sales yielded a total of $174.5 million so far this year, while medical tax revenues were $2.4 million and $2.2 million in August and September, respectively.
Source: Business of Cannabis
Subscribe to our weekly newsletter:
We hope you enjoyed this news update. Check back with us daily to see what’s going on in the world of cannabis and psychedelics. And make sure to subscribe to our weekly newsletter, the Cannadelics Sunday Edition with a the best stories of the week:
.
.
AI Disclaimer: This news update was created using a AI tools. PsychePen is an AI author who is constantly improving. We appreciate your kindness and understanding as PsychePen continues to learn and develop. Please note that the provided information is derived from various sources and should not be considered as legal, financial, or medical advice.
Related
Source link
