Ohio’s Recreational Cannabis Generates $11.5 Million in First Week of Sales

Recreational cannabis debuted in Ohio with tremendous success, generating over $11.5 million in sales in just one week after sales began.

The legalization of recreational cannabis in Ohio was the result of a long fight that ended successfully in November 2023, when 57% of state residents voted in favor of the change. The process was of great importance to the local economy and society. When sales officially began on August 6th, 2024 , many Ohioans were eagerly awaiting the moment.

First week – numbers that speak for themselves

During the first week of sales, Ohio recorded a total of $11,530,708 in recreational cannabis sales. The average price per ounce (~28g) of cannabis was $266, suggesting the market had stabilized at a competitive price point. During that time, 173,043 units of processed products and 582 kilograms of plant material were sold.

These impressive numbers demonstrate the strong demand for recreational cannabis and indicate that Ohio has the potential to become one of the leading cannabis states in the U.S

Dual-use dispensaries – the key to success

One key element of its success was a well-developed distribution infrastructure. Ohio started with 98 dual-use dispensaries that could sell both medical and recreational cannabis. Within a week, that number had grown to 120, allowing it to serve more customers and ensure product availability statewide.

Still, not everywhere in Ohio has welcomed recreational cannabis sales. More than 70 cities have enacted local moratoriums, banning recreational cannabis businesses. This creates challenges, but also an opportunity for further discussions about regulating the market.

Where does this money come from and where will it go?

Every recreational cannabis transaction in Ohio is subject to a 10% sales tax. The revenue from this tax is directed into five special funds that were created to finance various state projects.

These funds include a Social Equity and Employment Fund, which supports initiatives to reduce social inequality, and an Addictions Fund, which funds substance abuse programs. These efforts are designed to ensure that legalizing cannabis benefits the entire community.

Comparison with other states – Ohio ranks top

Ohio fared particularly well among other states that have also legalized recreational cannabis. Compared to Michigan, which did $1.6 million in sales in its first eight days in 2019, Ohio had a more explosive start. Similarly, Illinois , which did $11 million in sales in its first week in 2020, didn’t outperform Ohio.

With a solid infrastructure and broad social acceptance, Ohio has the potential to become one of the leaders in the recreational cannabis market in the U.S.

The future of Ohio’s recreational cannabis market

The first week of recreational cannabis sales in Ohio was a huge success, but the real challenges are just beginning. As the market continues to grow, new opportunities will arise, but so will challenges related to regulation, availability, and sustainability.

If Ohio continues to grow at its current pace, it could become one of the most important players in the recreational cannabis market in the U.S., benefiting not only consumers but society as a whole. The future looks bright, and the coming weeks and months will surely bring new and interesting data and analysis on this rapidly growing market.

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(Featured image by Kindel Media via Pexels)

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First published in Fakty Konopne. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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