Missouri Cannabis Sales Skyrocket, Causing Shortages and Price Hikes as Demand Surges
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.
Innocan Pharma Reports Significant Revenue Growth and Impressive Gross Profit in Q1 2023
LOS ANGELES-- Innocan Pharma Corporation, a pharmaceutical technology company specializing in innovative drug delivery platform technologies, has announced its financial results for the first quarter ended March 31, 2023. The company reported significant growth in ...
Minnesota Legalizes Adult-Use or Recreational Cannabis
ST PAUL, MN–Minnesota Governor Tim Walz, a Democrat, made a significant move on Tuesday by signing a bill that legalizes the recreational use of cannabis in the state. With this signature, Minnesota becomes the 23rd ...
Canopy Growth Acquires 19.99% Stake in Indiva, Secures Distribution Rights for Wana Edibles in Canada
LOS ANGELES-- In a strategic move to expand its presence in the cannabis edibles market, Canadian cannabis producer Canopy Growth has announced the acquisition of a 19.99% stake in edibles manufacturer Indiva. The deal also ...