llinois Cannabis Market Reaches New Heights in November Sales

LOS ANGELES- November marked a significant milestone for Illinois’ adult-use cannabis market, achieving record-breaking sales predominantly from in-state residents, and ranking as the fifth-highest monthly total since the inception of legal cannabis shops in January 2020.

November’s Cannabis Sales Breakdown

The Illinois Department of Financial and Professional Regulation reported an impressive total of $139.1 million in recreational cannabis sales for November. This sum comprises $105.5 million in sales to Illinois residents and $33.6 million by visitors, exclusive of taxes, as reported by Marijuana Moment.

A noteworthy aspect of November’s sales was the volume of individual adult-use cannabis products sold, reaching an all-time high of 3.77 million items.

Medical Cannabis Sales and Market Trends

While November’s medical cannabis sales figures are pending, October’s sales in this category reached $26.2 million. This includes $12.4 million in dry flower and $13.8 million in concentrates and infused products, according to the Medical Cannabis Patient Program.

Despite these robust sales, Illinois consumers face higher cannabis prices compared to many other states with legal markets. Governor J.B. Pritzker acknowledged these high prices, yet highlighted the industry’s expansion and significant sales to out-of-state customers.

Record-Breaking Growth in 2023

Fiscal year 2023 has been remarkable for Illinois’ state-legal cannabis market, marked by an “unprecedented” surge in sales. The addition of 28 new retailers and total retail sales surpassing $1.5 billion significantly contributed to this growth. The fiscal year brought in about $451.9 million in revenue from legal cannabis, surpassing alcohol revenue, which was around $316.3 million.

Social Equity in Cannabis Licensing

Illinois has made strides in addressing the War on Drugs’ impact by issuing 200 conditional licenses and establishing a Social Equity Criteria Lottery. This initiative prioritizes individuals disproportionately affected by drug laws, with over 2,600 applicants for 55 new social equity dispensary licenses, predominantly in Cook County.

Diversity Boost and Challenges for Small Growers

The industry has seen a rise in minority and women-owned businesses since 2020, with Black-owned companies comprising 27% of the market, Latino/a or Hispanic-owned at 5%, Asian-owned at 3%, and women-owned businesses at 16%.

However, the state’s small cannabis growers are facing challenges in thriving, even with state support.
Illinois’ cannabis market is experiencing a period of significant growth and transformation, balancing commercial success with efforts to advance social equity. The record sales in November, along with the fiscal year’s robust performance, underscore the market’s potential. While the state navigates pricing challenges and strives to support small growers, the overall trend points towards a dynamic and evolving cannabis landscape in Illinois.