Illinois Sets Record in Cannabis Sales; Boosts Social Equity and Diversity in Licensing

LOS ANGELES- Illinois’ adult-use cannabis retailers hit a historic peak in November, achieving the highest sales to in-state residents in a single month since the opening of cannabis shops in January 2020. The total sales for the month, including those made by out-of-state customers, ranked as the fifth-highest monthly total in the state’s cannabis market history.

Breakdown of November’s Cannabis Sales

The Illinois Department of Financial and Professional Regulation announced that recreational cannabis sales reached a total of $139.1 million in November. This total comprises $105.5 million in sales to Illinois residents and $33.6 million by visitors, as reported by Marijuana Moment, excluding taxes. Additionally, a record-breaking 3.77 million individual adult-use cannabis products were sold during the month.

Medical Cannabis Sales and Market Trends

While figures for November’s medical cannabis sales are yet to be released, October’s sales were reported at $26.2 million. This includes $12.4 million in dry flower and $13.8 million in concentrates and infused products, according to data from the Medical Cannabis Patient Program. Notably, Illinois consumers face higher cannabis prices compared to other states with legal markets, a concern acknowledged by Governor J.B. Pritzker.

2023: A Year of Record-Breaking Growth

The fiscal year 2023 has been marked by an “unprecedented” surge in state-legal cannabis sales, partly fueled by the opening of 28 new retailers and overall retail sales surpassing $1.5 billion. The fiscal year brought approximately $451.9 million in revenue from legal cannabis to Illinois, surpassing alcohol revenue, which stood at around $316.3 million.

Advancing Social Equity in Cannabis Licensing

To counteract the impacts of the War on Drugs, Illinois issued 200 conditional licenses and set up a Social Equity Criteria Lottery. This lottery prioritizes individuals disproportionately affected by drug laws, with over 2,600 applicants competing for 55 new social equity dispensary licenses. The majority of these licenses were allocated in Cook County, the most populous region in the state.

A Boost to Diversity and Challenges for Small Growers

The cannabis industry in Illinois has witnessed a significant increase in minority and women-owned businesses since 2020. Black-owned companies now represent 27% of the market, Latino/a or Hispanic-owned companies 5%, Asian-owned companies 3%, and women-owned businesses comprise 16%.

However, small cannabis growers continue to face challenges in this booming market, struggling to compete even with state support.

Illinois’ record-breaking November sales and the state’s efforts to foster social equity and diversity in the cannabis industry represent significant milestones. These developments not only underscore the growing acceptance and commercial success of legal cannabis but also highlight the state’s commitment to addressing historical injustices associated with cannabis prohibition. As the market continues to evolve, the balance between commercial success and social responsibility remains a key focus for stakeholders.