Cannabis users in Maryland spent $87.4 million on cannabis products in Maryland in July 2023, the first month of legal recreational sales in the state.
The number more than doubles the sales total for the state in June, when only medical cannabis dispensaries were open and serving patients, with about 100 of those existing dispensaries cleared to serve adult use customers on July 1. Licensed growers sold 19,600 pounds of cannabis and an average of $2.8 million was spent on cannabis products daily. The previous monthly record for medical-only cannabis purchases was just over $50 million. A majority of the sales in July came from cannabis flower, which surpassed $50 million in sales.
“Maryland’s adult-use retail sales have had an incredible start in its first month, hitting $21 million in the first week alone,” said Ben Burstein, a strategist at wholesale cannabis marketplace LeafLink, to Forbes. “This puts the state on track for an annual run-rate of $700 million to $800 million, making it one of the top-performing markets this year.”
The first month of sales in Maryland was already seen as a success as adult-use cannabis sales topped $20 million in the first week alone, coming in at $20.9 million. Nearly half that total, $10.4 million, was generated during the opening weekend of sales.
“We often see an uptick in demand following the initial launch of adult use sales, and with sales in Maryland predicted to reach $1 billion by 2025, there is a significant opportunity for cannabis businesses and the overall economy to benefit,” said Darren Weiss, president of Verano Holdings, the operator of four Zen Leaf retail locations in Maryland.
Maryland recently announced a second round of funding to help social equity cannabis businesses with operating costs and opened applications for the $40 million in grant money to social equity applicants with pre-approval on August 1. The money comes from the Cannabis Business Assistance Loan which was established under a cannabis regulations bill signed by Governor Wes Moore in May 2023.
Applicants who are accepted will be able to choose between a grant that is a lump sum or a zero-interest loan they would pay back over five years. Grant will receive up to $5 million each. State officials also planned future funding rounds that would support cannabis-related programs at Historically Black Colleges and Universities, businesses applying for licenses and business development organizations. Funding will also be available for training and assisting small businesses, including minority and women business owners interested in entering the adult-use cannabis industry,
“The cannabis industry is evolving quickly and we want to make sure that Maryland helps lead this new chapter of equity and economic growth,” said the governor in a press release. “By focusing this round of funding on social equity applicants, we can ensure investments go towards businesses in communities that have been historically overlooked, and ultimately provide new opportunities for residents throughout Maryland.”
In November, voters in Maryland helped pass Question 4, a state referendum that allows adults 21 and older to possess up to 1.5 ounces of cannabis and grow up to two plants at home. Possession of larger amounts, up to 2.5 ounces, will be punishable by civil fines only. Legal adults in the state are also allowed to purchase regulated cannabis products including flower, vapes, gummies and more from the state’s existing medical marijuana retailers. The legislation also changed the Maryland Medical Cannabis Commission, which regulated the production and sale of medical cannabis in the state, to the Maryland Cannabis Administration. Cannabis became decriminalized in the state Jan. 1, 2023 and immediately expunged anyone with cannabis convictions on their records.
