Maryland Prepares for Launch of Recreational Cannabis Market on July 1

LOS ANGELES– Maryland is gearing up for the launch of its state-legal recreational cannabis industry on Saturday, July 1, signaling a shift from its portrayal in HBO’s The Wire to a regulated market for adult-use cannabis. Businesses in the state have been ramping up production to meet the anticipated surge in demand from both new and experienced consumers.

Cultivation and processing operations across Maryland have been diligently preparing a wide range of cannabis products, bolstering their inventories and increasing production to meet the expected demand. SunMed owner Jake Van Wingerden expressed confidence that demand will skyrocket in the initial months of the recreational market.

The approval of a referendum in November paved the way for Maryland’s recreational marijuana market, with the state leveraging its existing medical cannabis industry as the foundation. Almost every medical cannabis dispensary, processor, and cultivator in the state has paid to enter the recreational market, with fees ranging from $100,000 to $2 million based on revenue. The state has also expanded the number of licenses for dispensaries, processors, and growers, while introducing micro-licenses tailored to smaller operations.

Maryland’s path to legalization shares similarities with Missouri, where monthly cannabis sales tripled shortly after adult use was legalized. Insiders anticipate a similar trajectory for Maryland. If these predictions hold true, annual revenue from the cannabis industry in the state could surpass the billion-dollar mark. While the state’s medical cannabis market experienced rapid growth and consolidation in its first few years, sales began to level off last year.

In an effort to ensure fairness and equity in the new market, Maryland has implemented reserved licenses and funding opportunities for individuals from disadvantaged communities. The legislative process, which accomplished these goals in a relatively short timeframe, is seen as a potential model for other states.

Border towns like Westminster, Maryland, are likely to witness an initial surge in demand from residents of neighboring states such as Pennsylvania and Virginia, which have not yet legalized recreational cannabis.

A 9% tax will be applied to all purchases intended for recreational use, and dab concentrates will be exclusively available to medical marijuana patients.

Although businesses can now apply for micro-dispensary licenses that allow for delivery services without a physical storefront, the first licenses of this kind are not expected to be awarded until January 1, 2024.