Selection of medical recreational cannabis in a legal retail store
In less than a week since sales began, Ohio dispensaries have sold over $11.5 million worth of recreational marijuana.
Between August 6 and 10, $11,530,708 worth of recreational marijuana sales were made, with another $8.3 million coming from medical marijuana sales, according to a recent report from the Ohio Division of Cannabis Control.
The marijuana agency also reports that 173,043 units of manufactured marijuana products and 1,285 pounds of plant material were sold.
The average price for plant material is $26.59 per 1/10 ounce and $9.40 per gram, while finished products average $31.06. These prices likely represent a mix of medical and recreational sales, although the data does not provide an exact breakdown. As recreational sales increase, these averages may change as the market adapts to new consumer demands and competitive forces.
The numbers indicate a strong market potential for recreational marijuana sales as it continues to grow. The recreational segment recorded a total of 138,466 transactions, as shown by the number of receipts.
The introduction of recreational marijuana on August 6, 2024, had a significant impact on the pricing of the substance, as data from August 5 and 10, 2024 show.
Before the start of non-medical sales, the average price of plant material was $22.21 per 1/10 oz and $7.85 per gram. After the introduction of recreational marijuana, these prices rose to $26.59 per 1/10 oz and $9.40 per gram.
This price increase suggests that the new recreational market has put upward pressure on plant material prices, likely due to increased demand from a larger customer base.
In addition, the average price of manufactured products also increased, suggesting that the growth of the leisure market influences overall pricing strategies and market equilibrium.
Although there have been only minor changes in price stability in the medical marijuana market, overall trends reflect a shift in market dynamics driven by new demand from the non-medical sector.
If the leisure market continues to grow at this pace, it could significantly increase overall sales in the coming months.
Monitoring evolving market dynamics will be important to see how the balance between medical and non-medical sales changes over time.
Since December 2023, when marijuana was legalized for recreational use, Ohio residents are allowed to possess up to 2.5 ounces of marijuana flower and 15 grams of extract and grow up to six plants per person or 12 plants per household.
After months of legislative efforts, Ohio lawmakers passed regulations for recreational marijuana sales in May 2024, following a vote to legalize recreational marijuana in 2023, making Ohio the 24th state to do so.
Adults over 21 in Ohio can now purchase marijuana without a health insurance card at dispensaries across the state.
Previously, the Ohio Department of Commerce’s Division of Cannabis Control (DCC) issued dual-use certificates of operation (COO) to 98 dispensaries, allowing them to sell both medical and recreational marijuana.
MJBizDaily projects that Ohio’s recreational sales could reach $1.5 billion to $2 billion in the first year and $3.5 billion to $4 billion in the fourth year. A cost-benefit analysis by Scioto Analysis estimates the net societal benefit of legalization at about $260 million, with potential impacts ranging from $200 million in costs to $1.9 billion in benefits.
