The Economic Power Of New Cannabis Market
Over the last few years, the cannabis industry has seen tremendous growth. We have seen new cannabis markets arise with more states that have gone legal. This has led to legal states generating more revenue through taxes on cannabis sales. Illinois back in 2020 became the 11th state to legalize recreational marijuana.
Since that time many cannabis companies have set up shop and been thriving from the Illinois cannabis market. Marijuana stocks like Green Thumb Indsutries Inc., Cresco Labs, and TerrAscend to name a few. Even though the U.S. cannabis industry is still fairly young, it’s amazing what the state has produced in such a short time. In 2020 alone the company was able to produce 1$ billion in cannabis sales. This comes after legalizing recreational cannabis back at the start of 2020.
This progress goes to show how legalizing cannabis nationwide may create the ability many economic issues. Even in the midst of a pandemic the state was able to see a massive uptick in cannabis sales. Some state officials a claiming that the total revenue made from cannabis in Illinois is just north of 1$ billion. This is split between the sales of adult-use and the medical use of cannabis. Which does not include any medical sales made in December of 2020.
How Will Illinois Cannabis Industry Continue To Thrive?
With a solid first year in cannabis sales, this gives hope to a lot of future investors. Back in December, there was over $85 million in recreational sales. This made a huge dent in the state’s market as Illinois looks to be a real competitor in the cannabis industry. These sales above have more than doubled since the state opened its doors to full rec cannabis shops. For those looking to get involved in the state’s untapped cannabis potential, there is a long line.
First, you need to go through the long process of getting the licensing you need to cultivate, process, and then distribute. Some have gone on to say how slow the state continues to be with giving out its cannabis licenses. Due to this many people are left waiting before they can set up cannabis businesses. Some cannabis advocates project Illinois may have over 200 dispensaries that could be open for business by 2022.
Monthly Cannabis Sales And Future Outlook
Let’s recap just how much growth potential the state’s cannabis market has. Back in January 2020 in the first month that Illinois had recreational sales the state made over $30 million with just in-state purchases alone. Between both in-state and out-state purchases a total of over 900,000 cannabis items sold. This made for a total of 39,247,840,37 in the first 30 days of going fully legal. Over the next 6 to month the Illions was able to consistently produce more gains with the increase in demand for cannabis.
Fast forward to November and the state made over 20$ million in out of state cannabis sales. This doesn’t include the additional $54.536.551.74 made from residents who purchased cannabis products. Close to 2million various recreational cannabis products were purchased back in December. Over 14 million different full recreational cannabis products were sold back in 2020.
One of the many things state officials have stressed is how to use this money to build back communities. Some have gone on to say as they love the economic progress that is being made but there is more to it. For example, money that is generated from the state’s cannabis market should be used to rebuild areas that were most impacted by the war on drugs.
The Future Of Booming Cannabis Industry
Almost 25 percent of the taxes made from the sale of cannabis will be used for restorative justice grants. Back in May state officials in Illinois announced that they would produce $31 million in social equity grants. These grants will be made available to those in areas that are labeled as having economic issues. This opens a whole new door for other states to run similar programs. In addition to this, it’s also a segue into one of the many ways with money made from cannabis we can fix more problems.
As it stands this seems like it’s only the start of more money and cannabis opportunity for the state of Illinois. Currently, as the rules and regulations are set up one in-state customer can possess up to 30 grams of flower. Also, there is a 5 gram limit of cannabis concentrates and a 500-milligram cap on THC edibles or tinctures. For those traveling out of state, each purchase limit is half of each limit above. Future plans for the Illinois cannabis market is to set the example of what a new market can do. Furthermore, as more things develop many investors are keeping a close eye on what unfolds in 2021.