Arizona Cannabis Sales Drop, But Annual Projection Remains Strong

LOS ANGELES– Arizona’s cannabis sales have experienced a significant downturn in 2023, with the lowest recorded sales in July. Nevertheless, annual projections for the state’s cannabis market are optimistic and are still expected to parallel the 2022 figures.

This week, data from the state Department of Revenue revealed that July’s cannabis sales in Arizona plummeted to $77.3 million for adult-use and $26.1 million for medical use. In contrast, a peak was observed in March, with dispensaries selling $99.9 million in recreational cannabis and an additional $33.2 million in medical cannabis. Although initially reported sales surpassed $100 million for adult-use, this figure underwent a slight revision, as stated by the Arizona Mirror.

June’s figures showed a mild recovery, with sales of $85.2 million in recreational cannabis and $27.9 million for medical use. However, these numbers still lag significantly behind the sales numbers seen in the first quarter of the year. During this period, recreational sales consistently exceeded $90 million monthly, and medical sales were around the $30 million mark.

The decline in sales might elucidate why significant cannabis players like Cresco Labs have opted out of the southwestern market. This exit by multistate operators aligns with the apparent decrease in total sales throughout the year.

In terms of year-to-date figures for 2023, Arizona has accumulated just shy of $1 billion in cannabis sales: $714 million from recreational sales and $241 million from medical sales. With data for August and September pending, the Arizona Mirror forecasts that the state will likely match its 2022 annual sales record of $1.4 billion by the year’s close.

While this year has seen some fluctuations, the overall cannabis market in Arizona remains robust. The anticipated rebound towards the end of the year signifies the market’s resilience and potential for growth.