As states report cannabis sales for 2020, record highs persist across the country. It has become a multi-billion dollar business for several states blowing up the values valued by states when they originally planned legalization.
Billion dollar club
The Colorado Treasury Department reported that cannabis sales in the state reached over $ 2 billion in revenue from January through November 2020. Plus, December wasn’t even added to total sales. Despite the pandemic, the state has continued to break records. Steve Lopez, CEO of The Green Solution (Colorado), said, “With sales exceeding $ 2 billion in January through November 2020, we continue to see Colorado break sales records from the pandemic. We launched over 50 self-service kiosks at our 21 retail locations across the state last year, and we owe high revenues to innovation and creativity in our industry and the measures we have taken to prioritize the safety of employees and customers. “
Adult cannabis retailers in Massachusetts now have gross sales of more than $ 1 billion. This is based on information reported in the state’s mandatory system for tracking sales of seeds, the Cannabis Control Commission. At the close of business on October 30th, total data reported by 80 retailers in Metrc was $ 1,000,521,905. What makes this even more impressive is that the government program is basically only two years old.
“This sales milestone represents licensees’ ability to successfully support a safe, accessible, and effective adult industry, and I am pleased that the resulting tax benefits will have a significant impact on communities across the Commonwealth,” said Steven J. Hoffman , Chairman of the Commission. “These numbers also speak to Commission licensing and enforcement officers who work around the clock to make sure these companies and their products comply with all of our regulations, particularly health and safety regulations. Each year as this market matures, the public will continue to see progress on the Commission’s government mandates and goals, including our commitment to justice, and the steps we took in 2020 are evidence of that. “
The California Department of Taxes and Fee Management has shown that the state is on track to generate $ 1 billion in cannabis tax revenue in 2020. To date, marijuana taxes generated a total of $ 778.4 million in the first three quarters of the year, including $ 306.8 million in the third quarter. As of Aug. 11, 2020, California cannabis excise tax generated revenue of $ 101.8 million included in returns due for Q2 2020 through July 31, 2020, and cultivation tax generated $ 22.9 million Million USD. As of January 2018, the program has total revenues of $ 1.45 billion, including $ 709.9 million in cannabis excise tax, $ 173.7 million in cultivation tax, and $ 563.6 million in sales tax.
The Oregon Liquor Control Commission (OLCC) recently released data that found total cannabis sales in the state rose from $ 795 million in 2019 to $ 1,110,520,723 in 2020, a new record year for the state. Jeff Yapp, CEO of Golden Leaf Holdings, who runs the pharmacies of Chalice Farms, Oregon, said, “2020 was a tough year for many small business owners, but it was a record year for cannabis and Golden Leaf Holdings through Chalice Farms as more and more people turned to cannabis as an alternative form of health and wellbeing. With so many states seeing cannabis essential, the conversation in the industry began to change in a positive direction. Our clients, who deal with the stress, anxiety and pain caused by the many challenges of COVID-19 and the impact it has on their lives, see positive results from responsible cannabis products. “
Washington state is another of the more mature states for selling cannabis. The adult cannabis market generated sales of $ 1.1 billion in fiscal 2019, up 8% from 2018. The state’s fiscal year 2019 runs from July 1, 2019 to June 30, 2020.
Almost billion club
One of the cities that has been hit hardest over the past year is Las Vegas, which is incredibly reliant on tourism and hospitality. As sales continue to grow in Nevada, the cannabis industry has consistently earned the state much-needed tax revenue and saved jobs for more than 8,000 workers. The state’s 2020 fiscal year brought $ 684 million in taxable cannabis sales. Three months into fiscal 2021, the state reported sales of $ 234 million. This is equivalent to $ 178 million over the same period in the previous fiscal year.
Matt Janz, Director of THC Marketing at The Source + (Nevada) said, “We have seen our industry grow from illegal to essential. Not only did Nevada increase total cannabis sales in 2020, it also created much-needed jobs for thousands of people in a state that relies almost entirely on hospitality and tourism. We look forward to continuing to offer wellness as an essential business in our state and providing Nevada with substantial tax revenue during these challenging times. “
Michigan reported that combined cannabis sales in 2020 were $ 984.6 million, with adult use leading with sales of $ 510.7 million, while medical sales contributed $ 474 million. The adult market found flowers and ornaments to be the most desirable, taking up 55% of the market. Concentrates and vape accounted for 25%, with groceries ranking fourth with 19% of the market. The drop in flower prices was to be welcomed as prices started the year above $ 8,000 a pound in January and ended at $ 5,614 a pound in December.
Another relative newcomer is Illinois. That state reported that sales of adult and medicinal cannabis were $ 669 million in 2020. A spokesman for Green Thumb Industries said, “Another record month of adult cannabis sales in Illinois is not surprising. Cannabis is a massive new engine in the American economy and there is a tidal wave in demand for cannabis products. There is mass consumer acceptance of the U.S. cannabis industry. There are very few topics that have such universal acceptance. We look forward to welcoming a new generation of entrepreneurs as the social justice licenses are granted. “