Why it matters: The article highlights that Illinois has one of the most expensive retail cannabis markets in the United States. This could have implications for consumers and businesses in the state.
What they are saying: According to a report by Headset, Illinois ranked among the states with the highest cannabis prices. The report also found that the state has a limited number of brands, resulting in high market consolidation. The category of pre-rolls, which is typically a fast-growing category, is underrepresented in the Illinois market.
The big picture: Illinois has the third largest cannabis market in the country, trailing only behind California and Michigan. However, the high prices and limited brand options pose challenges for the state. To address these issues, Illinois is taking action, such as allowing licensed cannabis businesses to take tax deductions and establishing a Cannabis Business Development Fund to support social equity applicants.
What to watch: It will be interesting to see how the expansion of retail licenses in Illinois will impact the market. The state’s efforts to support cannabis businesses and address pricing issues could also have significant effects on the industry.
My take: The findings of the report emphasize the need for increased competition and product variety in the Illinois cannabis market. Lowering prices and expanding access to retailers could benefit both consumers and businesses. The state’s initiatives to support social equity applicants are commendable and could contribute to a more diverse and inclusive industry.
