In just under three months since the launch of adult-use cannabis sales, Ohio has seen significant revenue growth, with total sales surpassing $131.8 million, according to the Ohio Department of Commerce Division of Cannabis Control (DCC). The state reported about $55 million in sales over the past month alone, a testament to the rapid expansion of the cannabis market since the state legalized non-medical cannabis earlier this year.
As of October 26, Ohio has sold 16,254 pounds of cannabis flower and over 2 million units of manufactured cannabis products. These products include items such as edibles, concentrates, and tinctures. The state has reported an average price of $29.21 for manufactured products during the week of October 20-26, a slight decrease from the previous month’s average of $30.04. Similarly, the average price per gram for flower has dropped from $8.39 to $7.67 during the same period.
Though the state does not provide specific figures on the tax revenue generated from cannabis sales, it is important to note that Ohio imposes a 10% tax on all non-medical cannabis sales. Based on the total sales figure, this could mean approximately $13 million in tax revenue generated from adult-use cannabis sales in the first three months, though this figure remains speculative until the official tax reports are released.
Currently, Ohio boasts 124 dual-use dispensaries, which sell both medical and adult-use cannabis. However, many parts of the state have opted out of allowing adult-use cannabis sales. According to data from Ohio State University’s Moritz College of Law, more than 100 cities and townships have enacted moratoriums, effectively banning the sale of non-medical cannabis within their jurisdictions. Despite these restrictions, major cities in Ohio are seeing a concentration of dispensaries.
Columbus, the state’s capital, leads with 13 dispensaries, while Cincinnati follows closely with 10. Dayton has six adult-use dispensaries, and Cleveland hosts five, making these cities key hubs for adult-use cannabis in Ohio. The presence of dispensaries in these major urban areas contributes significantly to the overall sales, making cannabis accessible to many Ohio residents who live in more urbanized parts of the state.
The slight decrease in the average price of cannabis flower and manufactured products indicates that market demand is stabilizing, with the prices likely adjusting to consumer preferences and supply levels. The drop in price may also reflect efforts by dispensaries to remain competitive in the market as more options become available for consumers, especially in urban areas where dispensary competition is more pronounced.
The state’s cannabis market has faced challenges typical of new legal markets, including supply chain issues and pricing fluctuations. However, the sustained sales figures suggest a strong and growing market, with demand for cannabis products showing resilience in the face of regulatory hurdles.
Moratoriums and Local Resistance
While Ohio’s cannabis sales are booming, local resistance to adult-use cannabis remains a significant barrier to statewide access. The 100+ townships and cities that have passed moratoriums highlight the ongoing tensions between state-level legalization and local governance. These moratoriums prevent dispensaries from opening in many rural and suburban areas, potentially limiting access for consumers in these regions.
Ohio’s political landscape reflects the divide over cannabis legalization, with some local governments resisting adult-use cannabis sales due to concerns about public safety, crime, and community values. However, as the market continues to show strong sales, it is possible that local municipalities may revisit their stance on adult-use cannabis, especially as tax revenues generated by cannabis sales become more visible.
The robust sales figures in the first three months of Ohio’s adult-use cannabis market set the stage for continued growth, despite challenges posed by local moratoriums and regulatory concerns. As Ohio adjusts to its new cannabis landscape, policymakers, cannabis operators, and local governments will continue to navigate the complexities of legalization. The state’s cannabis industry is poised for further development, with potential for more dispensaries and increased tax revenue as local resistance to cannabis sales wanes and public opinion shifts.
Ohio’s cannabis market remains one to watch, as it continues to evolve in the coming months and years. For now, the early success of adult-use cannabis sales offers a promising outlook for the future of the industry in Ohio.
