In recent years, the revenue across a number of legal cannabis markets across U.S. states has slowed in growth, especially among some of the older established markets across the country. Though, looking back at the 2023 numbers, Illinois’ legal cannabis market is maintaining strong sales trends and momentum moving into the future.
The Prairie State ushered in the new year with two records: one monthly sales record for December and another annual sales record for 2023.
Illinois Starts the Year With Numerous Cannabis Sales Records
According to the Illinois Department of Revenue, state cannabis retailers sold $181.8 million worth of cannabis products in December, namely a record $153.9 million in recreational purchases. The total tops the previous monthly record set in December 2022 by nearly 7%. Medical cannabis sales were also at their highest since April 2023 for the month, totaling $27.9 million.
Legal cannabis sales also set a new annual record for 2023, reaching just shy of $2 billion in total sales including more than $1.6 billion in recreational sales. Sales taxes for the year from adult-use cannabis also totaled $417.6 million, per the state’s Department of Revenue.
“From day one, my administration has put equity first to build the most accessible cannabis industry in the nation,” Gov. J.B. Pritzker (D) said in a press release. “Our work will continue to repair past harm while providing opportunities for communities across the state and creating a more prosperous future.”
If the others weren’t enough, Illinois also set records for number of items sold, marking a 15% increase compared to 2022. The state sold 42,124,741 items in adult-use cannabis dispensaries in 2023. Additionally, the new year marked a record for in-state resident sales; Illinois residents purchased just over $1.2 billion in products, more than a 14% increase compared to 2022 and at a higher growth rate than the previous year.
Illinois Department of Financial and Professional Regulation (IDFPR) Secretary Mario Treto Jr. cited the recent data, calling the continued growth “encouraging progress that is a testament to the hard work by the Pritzker Administration, lawmakers, and stakeholders,” placing further emphasis on cannabis accessibility, regardless of identity or where in Illinois consumers reside.
“I’m proud of the simplified application process we’ve created to ensure an inclusive cannabis industry and look forward to welcoming even more professionals to the most equitable industry in the country,” the secretary said.
Illinois Cannabis Industry Progress and Looking Ahead
Illinois currently has 177 total recreational cannabis dispensaries, including 67 social equity dispensaries. According to the release, 133 applicants selected in the 2022 lotteries are still in the process of receiving full licensure from IDFPR along with an additional 55 applicants selected in the Social Equity Criteria lottery in July 2023.
A recent survey assessing the “extent of diversity” in the state’s medical and recreational cannabis industries also showed a number of these changes since the market’s 2020 launch, namely an increase in companies owned by women and people of color.
“The legalization of adult use cannabis was the start of uplifting the communities most impacted by the failed war on drugs,” Lt. Gov. Juliana Stratton said in the release. “The benefits from these sales will be used to continue investing in our economic growth in historically disinvested populations.”
The news is perhaps unsurprising, as an annual report released in October cited “unprecedented growth” in fiscal year 2023. While similarly highlighting the strong sales numbers, the report noted that cannabis is continually making significantly more than the alcohol industry.
For fiscal year 2023 (running through July 1, 2022 to June 30, 2023), the state’s legal cannabis industry brought in approximately $451.9 million while the alcohol industry brought in approximately $316.3 million in the same period.
“Fiscal Year 2023 saw unprecedented growth in the cannabis market not seen since the start of the medical program in 2015 and adult use cannabis was legalized in 2020,” the report notes. “Looking towards the future and Fiscal Year 2024, IDFPR anticipates continued growth of the regulated market.”
