Missouri Cannabis Sales Skyrocket, Causing Shortages and Price Hikes as Demand Surges

1.7 min readPublished On: March 27th, 2023By

MISSOURI– Since the launch of recreational cannabis sales in Missouri, the state has experienced a surge in demand that has caused prices to skyrocket. Within two months of the launch, cultivators have struggled to meet the overwhelming demand, resulting in higher production costs for manufacturers and steeper prices for consumers at dispensaries. As a result, prices for cannabis products are expected to increase by 50%-60%.

A significant factor contributing to the demand surge is the influx of customers from Missouri’s eight bordering states, only one of which has legalized recreational use. In the Kansas City area alone, around 40% of all cannabis dollars spent come from neighboring Kansas counties. Despite the expected price hikes, Missouri still has some advantages over its nearest competitor, Illinois, which tends to have more expensive products and a tax structure that can reach up to 35%, while Missouri taxes retail cannabis sales at a flat 6%.

Missouri dispensaries sold almost $71.7 million worth of recreational cannabis in their first month, a milestone that took Illinois nearly a year to achieve. In contrast, Illinois recreational cannabis product sales by legal retailers fell to $120.5 million in February, according to the state’s Department of Financial and Professional Regulation, the lowest since the same month in 2022. The data shows a sales plateau occurring in the state, though future figures will paint a clearer picture.

Missouri expects to generate substantial tax revenue from cannabis sales to help fund various programs. The overwhelming success of the launch has led many local governments to consider implementing their own taxes on recreational cannabis sales. Missouri also benefits from a well-established retail footprint born from its medical cannabis market, as well as a smooth compliance process.

To sweeten the pot, revised regulations introduced in Missouri in December permit increased quantities per visit. Medical cannabis patients are now authorized to purchase a maximum of six ounces within a 30-day span, a rise from the prior four-ounce cap. All other individuals aged 21 and above can buy up to three ounces of recreational-use flower, or the THC equivalent.

About the Author: News Team

Newsteam at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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