Missouri Marijuana News - Summer 2023 Update
By MK Thomson
June 20 2023
Missouri’s marijuana market is literally “blazing” with success (bu-dum-ching! Get it?!), as the Show-Me State continues to make headlines with its skyrocketing revenue and booming cannabis industry – both growing beyond anyone’s expectation. Since the legalization of first medical, then adult-use marijuana, Missouri has experienced remarkable growth of nearly $100 million in total sales. Not bad, huh?!
Let’s dive into the details and check out the updates on Missouri’s marijuana industry, including the breakdown of revenue between medical and recreational sales, job creation, market performance, and plans for the future.
Starting with the revenue breakdown, Missouri’s medical marijuana program has been a driving force, accumulating an impressive $85.2 million since its launch in 2019. The revenue is divided between $57.7 million derived from fees, including new license applications and annual license fees, and an additional $27.4 million from sales tax revenue.
Notably, $27 million has been allocated to support veterans, showcasing a commitment to using marijuana revenue for important social causes. And we love it! Nevertheless, approximately $11.7 million of the revenue has been designated for legal fees in response to appeals from businesses denied licenses. This underscores the intricate legal landscape and obstacles inherent in the industry.
Missouri’s recreational marijuana market booming since its February launch. Missouri’s adult-use sales generated $13.8 million, funding operational costs, court expenses, public defenders, drug treatment, and veterans, ensuring benefits for those in need and supporting the growth of the industry.
The success of the Missouri marijuana industry is not limited to revenue alone; it has also created a plethora of jobs. With nearly 15,000 direct jobs attributed to legal cannabis, the industry is making a substantial impact in providing high-paying jobs to the Show-Me state. These jobs range from cultivation and manufacturing to retail and regulatory positions. The growth of the industry has been instrumental in providing affordable wages for thousands of folks while boosting local economies.
High sales performance has been the leading indicator of Missouri’s success. In March, combined adult-use and medical marijuana sales exceeded $126 million, reflecting an impressive 23% increase compared to the previous month. The state’s adult-use sales skyrocketed during its first month, reaching a staggering $71.7 million, showcasing strong consumer demand and market enthusiasm. This robust performance indicates that Missouri’s marijuana market is thriving and has quickly become a billion-dollar business, outpacing some well-established MJ markets in other states.
Success has not been without its challenges. Missouri’s cannabis operators faced growing pains as they adjusted to increased demand and expanded production capacities. Oversupply in the medical market temporarily hindered the growth of cannabis cultivation, but the situation is expected to improve in the coming months. Additionally, the state is preparing to grant more cannabis industry licenses, opening opportunities for marginalized and underrepresented individuals to participate in the red-hot legal marijuana sector. The application process, scheduled to start in late July, will grant 48 licenses for dispensaries, cultivation, and marijuana manufacturing businesses through a random lottery drawing.
Ever since Missouri’s recreational cannabis market lit up in February, it has been heralded for its affordable prices and abundant product availability, setting it apart from other states in the early stages of cannabis legalization. However, as demand soared and the supply struggled to keep pace, wholesale prices in Missouri experienced an unexpected climb, causing some eyebrows to raise. LeafLink’s 2023 Wholesale Cannabis Pricing Guide showed that Missouri’s average cannabis wholesale prices are the second highest in 13 cannabis markets (yikes!). Alaska is the only state with higher prices. Since the market’s inception, wholesale prices in Missouri have continued their upward trajectory – in some instances increasing three times. Talk about inflation!
As Missouri regulates small marijuana businesses, concerns arise over St. Louis missing out on the cannabis industry. Amendment 3 aimed to address the historical criminalization of Black residents and provide equal opportunities. However, the current licensing process raises fears of this history of exclusion. Efforts are underway to rectify the situation and promote inclusivity. Recognizing the lasting impact of past injustices, Missouri really does need to work towards a more equitable and inclusive cannabis industry.
Unfortunately, this surge in prices has posed challenges for local cannabis retailers, who are concerned that raising prices could steer customers back to illegal street purchasing where prices are lower and no added taxes. While this may be a temporary setback, similar scenarios in other states have eventually stabilized, and there’s good reason to believe that Missouri will follow suit. In the ever-evolving cannabis landscape, the future is ripe with possibilities, and Missouri is no exception.
Looking ahead, Missouri’s marijuana industry shows zero signs of slowing down. With monthly sales consistently exceeding $100 million, Missouri has emerged as a major player in the US cannabis market. As summer approaches, residents and tourists from neighboring states like Iowa and Kansas, where marijuana remains illegal, are expected to fuel an even greater surge in recreational sales. Additionally, as wholesale flower prices and biomass costs continue to decrease, Missouri cannabis businesses are well poised for further growth and exciting prospects in the coming months and years.
To bring it all home … Missouri’s marijuana revenue news has been nothing short of impressive, with sales having been far beyond what anyone had expected. The revenue breakdown between medical and recreational sales showcases the financial gains and the positive impact on various sectors, including support for veterans and other social causes. Job creation has soared, providing employment opportunities for thousands of individuals.
Despite initial challenges, the market’s performance has been outstanding, with strong consumer demand driving substantial sales. As Missouri’s marijuana industry continues to glow up, plans for future expansion and increased inclusivity give hope for a bright future for both canna-preneurs and consumers. Stay tuned as this green wave continues to spread across the Show-Me State!