Retail cannabis sales in the United States hit a record in October, according to data from wholesale marketplace LeafLink. A report of national cannabis sales for the third quarter of 2024 showed that retail sales of regulated marijuana products fell 2.1% from the previous month but rose 6.2% from last year, reaching about $2.8 billion. Total retail sales for 2024 are expected to come in at a total of approximately $32.6 billion, a 10.8% increase over 2023.
“The U.S. cannabis industry shows no signs of slowing down, with projections suggesting it could become a $55 billion market by 2030, growing at an annual rate of 11%,” LeafLink’s report on third quarter data notes. “Much of the near-term growth in 2024 and 2025 will come from newly issued licenses in states like New York, New Jersey, and Ohio, expanding retail capacity and fueling market momentum.”
The report also notes that retail sales have shown gradual growth over the year, with a 2.6% increase from January to October. Except for occasional monthly dips in sales, “the overall upward trend highlights a resilient retail market, which is beneficial as it points to sustained consumer interest and a strengthening market foundation.”
5,000 New Cannabis Retailers Projected To Open
An estimated 5,000 new cannabis retailers not owned by multistate operators are projected to open in the next two to three years in states such as New York, New Jersey, Maryland and Minnesota, LeafLink reports, representing a 70% increase in store count.
Different states with legal cannabis showed contrasting year-over-year price trends during the third quarter. For example, Maryland saw a significant 23.2% price drop, while Arkansas experienced a 20.7% increase.
Cannabis flower remained the top-selling product in the regulated industry, making up approximately 40% of retail sales and 39% of wholesale sales. Following flower, the most popular categories were vape cartridges (approximately 22% of wholesale sales), marijuana edibles (14%), pre-rolls (13%) and cannabis concentrates (12%).
The average price of cannabis flower price dropped to $1,065 per pound in October, down about $100 from peak levels seen during the summer. The decrease is consistent with seasonal outdoor harvests, which typically lead to oversupply and lower prices in key markets like Michigan and Arizona. The report adds that while prices are likely to decline through the end of the year as bulk cannabis flower is processed, reduced cultivation capacity in mature markets in the West such as California, Oregon and Colorado may help stabilize prices in 2024 compared to 2023.
Ben Burstein, LeafLink corporate development manager, noted that thousands of cannabis brands and retailers rely on LeafLink’s marketplace and product suite to manage their businesses, allowing the company to “give a data-centric perspective on what we’re seeing and provide useful insights for operators.”
“What’s clear is that the legal cannabis industry is on an upward trajectory,” Burstein writes in an email. “We continue to experience record-breaking sales each month, with strong growth from emerging markets.”
“Operator licenses are being rolled out faster than ever as new markets grow their legal programs and resolve bottlenecks across the supply chain,” Burstein adds. “And many state markets are expanding rapidly, such as our home state of New York, where monthly sales have more than tripled this year. There’s a lot to look forward to as we enter 2025.”
H/T: www.forbes.com
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