Maine’s adult-use cannabis retailers are continuing to break sale records, with $10.2 million worth of marijuana products being sold in the month of August.
The sales jump was a more moderate increase than July’s 45 percent increase from June sales, but it marks the first time in the industry’s history to report monthly sales of at least $10 million since the adult-use market launched last fall.
According to data released by the Maine Office of Marijuana Policy, the state’s 53 licensed adult-use retailers reported 133,969 sales transactions totaling over $10.2 million last month, earning the state roughly $1 million in sales tax revenue.
Recreational cannabis sales in Maine have steadily climbed since the market launched less than a year ago, with retailers totaling about $1.1 million in sales the first month and setting a new record each month thereafter. In July, cannabis retailers brought in roughly $9.4 million, smashing the previous record by almost $3 million
Although the Office of Marijuana Policy does not specifically track sales to out-of-state residents, officials have said it is likely that summer tourism has contributed to the recent bump in business.
The adult-use market has reported about $48.9 million in sales so far, earning the state almost $5 million in sales tax revenue since it opened in October 2020 following years of delay. For comparison, the state’s medical cannabis market reported $250 million in sales last year. More recent figures are not currently available.
At the start, the industry struggled with limited supply and high costs, but with 53 stores (nine new stores opened in August), 24 manufacturing facilities, and 47 cultivation sites, buyers are continuing to see more variety and lower prices on the shelves. That trend is not likely to change anytime soon. The state has 185 stores, 81 manufacturing facilities, and 175 cultivation sites in various stages of the approval process. There is a possibility that buyers may see prices come down further as more testing labs come online and lower the cost of testing for manufacturers and therefore retailers. The adult-use program requires a panel of tests for any product sold on shelves, and a round of testing can cost hundreds of dollars. The medical cannabis program does not require testing.
Currently, Maine has three licensed testing labs: Nelson Analytical, Nova Analytic Labs, and Cannabis Analytical Testing Laboratory (Catlab LLC). Two others may soon be joining them. Indicative Testing LLC and MCR Labs, which has locations in Massachusetts and Pennsylvania, are both in different stages of the approval process for a testing license.
The average customer spent about $76 per sale in August, a trend that has stayed relatively consistent since at least the start of the year. Flower continues to account for the majority of sales, capturing about 59 percent of the revenue during the three months ending Aug. 31. However, that share is down from 76 percent when the market opened and 63 percent in January, likely the result of a product menu that continues to expand and diversify.
Cannabis concentrates and infused products such as edibles and beverages have both seen their share of the market increase this quarter, to 22 percent and 19 percent, respectively, compared with 14 percent and 10 percent in October.
Maine’s adult-use cannabis market is projected to reach around $300 million a year in sales in its first four to five years.
