Ohio On Track To Become A Billion-Dollar Cannabis Market
August 20, 2024Adult-use cannabis sales topped $11 million in the first five days in Ohio, making for a banner start for recreational cannabis in the Buckeye state. Sales began on August 6, with 98 dispensaries operating as dual medical and recreational shops. The state approved 18 more dispensaries on August 8. According to the state’s Division of Cannabis Control, sales totaled $11.5 million by August 10. If they continue at this pace, Ohio is on a path to being a billion-dollar market in its first year. Estimates based on the initial rollout put Ohio’s first year adult-use sales at nearly $850 million, with the medical market contributing an additional $400 million or more.
The adult-use rollout in Ohio was bolstered by the inclusion of many of the U.S.’s major cannabis companies, bringing substantial experience in the adult-use market elsewhere. Major cannabis companies including Cresco Labs, Green Thumb Industries, Trulieve, The Cannabist Company, and Verano were issued day-one dual-use licenses and began sales immediately. Cresco operates five Sunnyside locations with dual-use licenses, Green Thumb has five outposts in the state—as does The Cannabist—and Trulieve has three.
“Any way you look at it, Ohio had incredible performance in the first week of sales that is on par or exceeds revenues for other adult-use launches, like Illinois,” Jason Erkes, Cresco’s chief communications officer, told SND. “With a very quick ramp up period, the sales figures represent exactly what voters said in November—people in Ohio want access to cannabis and this week they put their money where their vote was.”
“Ohioans were clearly ready and excited for the historic end of cannabis prohibition in the Buckeye State,” Trip McDermott, chief operating officer at Verano, told SND. “Since the start of adult-use sales, foot traffic and transactions have already increased two to three times across all five Zen Leaf dispensaries statewide in comparison to previous medical-only operations, and we expect to continue seeing robust activity at our stores and via third-party wholesale sales of our products for the foreseeable future.”
Early shoppers in Ohio favor flower, according to Headset, with 54.5% of total sales in that category. Vape pens follow at nearly 25% of sales, with edibles taking a 12.5% share. Pre-rolls, a major source of 2024 growth in other established adult-use markets, are currently unavailable at retail in Ohio due to the state’s testing standards. Headset estimates that they will roll out in the state by September.
Overall, 76% of August 6 cannabis sales in Ohio were by adult-use customers, with that average dropping over the next few days to 68% recreational, 32% medical. Consumers were spending $87.49 on average, a decline compared to the previous week’s medical-only average. The decline in basket size, however, is offset by the massive uptick in volume and the lower average discounts offered by dispensaries; the week before adult-use sales, the average discount was 21.5%, dropping to 11.9% when adult-use sales began.—Shane English
Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.
