Why it matters: The sales of cannabis in Arizona have surpassed $1 billion this year, indicating a thriving market for both adult-use and medical marijuana. The state has experienced consistent growth in cannabis sales since recreational marijuana was legalized in 2020.
What they are saying: According to data from the Arizona Department of Revenue, adult-use cannabis sales in Arizona have reached $797 million this year, while medical marijuana sales have totaled $267 million. Sales of adult-use cannabis have contributed $2.5 billion to the state’s overall cannabis volume since January 2021.
The big picture: Arizona first legalized the medical use of marijuana in 2010, followed by the legalization of recreational marijuana in 2020. The state has seen a trend of decreasing sales of medical marijuana, with September 2023 marking the lowest monthly total since regulated sales of adult-use cannabis began. On the other hand, sales of recreational marijuana have maintained consistent levels, exceeding $80 million per month.
What to watch: It will be important to monitor the continuing trend of declining sales in medical marijuana and the reasons behind it. The shift in consumer behavior towards smaller and more frequent purchases may be a contributing factor. Additionally, the tax revenue generated from cannabis sales is significant and supports various areas such as education, law enforcement, and public health services.
My take: The growth of the cannabis market in Arizona is impressive, with sales consistently surpassing the billion-dollar mark. The decline in sales of medical marijuana suggests that consumers are shifting towards recreational use, potentially due to the convenience and wider availability of adult-use cannabis. The tax revenue generated from cannabis sales can have a positive impact on essential services and community development.
