Maryland's Inaugural Month of Adult Cannabis Sales Sparks $87 Million Surge, Outshining Neighboring States
Maryland's Inaugural Month of Adult Cannabis Sales Surpasses $87 Million
In a resounding success, Maryland's nascent recreational cannabis market generated an impressive $87.43 million in sales during its inaugural month, state officials reported. The average daily expenditure on cannabis for the month of July stood at approximately $2.8 million.
This substantial figure outperformed the debut-month performances of other states like New Jersey, where sales reached around $24 million, and New Mexico, which amassed $22 million in recreational cannabis sales during their respective first months.
BJ Carretta, Senior Vice President of Marketing at TerrAscend, which operates cannabis establishments in various Maryland locations, expressed satisfaction with the results. Carretta stated, "We're happy about it."
According to the Maryland Cannabis Administration, licensed growers managed to sell 19,582 pounds of cannabis in July, a stark increase from the 8,056 pounds sold in the preceding month of June. Notably, the flower category, including buds and pre-rolled joints, contributed over $52.6 million to July's sales. Following closely were concentrates, including vape products, and edibles.
Industry leaders lauded the smooth launch of Maryland's adult-use cannabis market, attributing its success to the state's avoidance of pitfalls encountered by other jurisdictions. Unlike New York, where legalization occurred without a formal regulatory framework, and Virginia, which decriminalized cannabis without legalizing sales, Maryland managed a seamless transition by ensuring a recreational market was available on the very first day of cannabis prohibition ending.
Matt Darin, CEO of Curaleaf, overseeing dispensaries in Gaithersburg, Reisterstown, Frederick, and Columbia, praised Maryland's swift adaptation to meet demand. The state's facilitation of existing medical license holders converting to general use licenses played a pivotal role in maintaining supply. Consequently, Curaleaf reported a substantial increase in customer numbers, more than doubling from the previous month.
Maryland's decision to levy a 9 percent tax on cannabis received accolades from industry leaders. This taxation approach helps keep legal cannabis prices competitive with the black market. In July alone, the state accrued $4.61 million in cannabis sales and use tax revenue.
With the foundation for adult-use cannabis sales established, Maryland now grapples with the challenge of promoting social justice and equity within the industry. Despite efforts to prioritize minority ownership, past licensing rounds exhibited disparities. The forthcoming round of recreational licenses aims to address these issues by focusing on applicants from Zip codes disproportionately affected by cannabis criminalization.
To fulfill Maryland's social justice objectives, Governor Wes Moore appointed Audrey L. Johnson as the acting executive director and Courtney Davis as deputy director of the newly-formed Office of Social Equity. This agency is tasked with aiding minority business entry into the industry while ensuring compliance with economic equity and social justice standards.
Governor Moore also unveiled appointments to the Cannabis Public Health Advisory Council, responsible for advising on the health implications of legalization and strategies to mitigate youth consumption and cannabis addiction.
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