After generating over USD$40 million in its first month of legal cannabis, Illinois continues to see its cannabis sales powering on. Who said money doesn't grow on trees?
Recently, Illinois became the 11th US state to legalize cannabis for recreational purposes and hit nearly USD$40 million in cannabis sales in its first month.
Illinois' Department of Financial and Professional Regulation announced that sales on cannabis products over January reached USD$39.2 million, with almost USD$9 million attributable to purchases from out-of-state visitors. Roughly 972,045 cannabis products were sold within the month.
Illinois' first month of sales were some of the best seen out of any US state, coming only second to Nevada on a per capita basis. Furthermore, the state brought in USD$10 million in tax revenue for the months marijuana sales.
Now, with February done and dusted, it looks as though Illinois' first month of weed sales weren't purely the result of hype, with February bringing in a whopping USD$35 million.
While February's cannabis sales revenue was lower than January's USD$39.2 million, there are several reasons why this doesn't phase us.
Firstly, the very first day of sales in Illinois amounted to USD$3.2 million. Undoubtedly, the hype of seeing marijuana legal for the first time in Illinois mobilized large swaths of consumers, some of whom may have purchased products purely for the novelty. Then there was the issue of cannabis undersupply, with many dispensaries running out of cannabis and being unable to continue their sales throughout the month.
Lastly, factor in that February only had 29 days compared to January's 31 days, and you've effectively closed the revenue gap. In fact, it's more likely that February's USD$35 million in sales is more representative of what to expect in the future for Illinois given the aforementioned "first-day hype" sales.
As the adult-use cannabis industry continues to grow, so will the number of opportunities for consumers and entrepreneurs alike, especially those from communities who suffered the most during the failed war on drugs. Toi Hutchinson, Senior Advisor for Cannabis Control in Illinois
According to data collated by the Illinois Department of Financial and Professional Regulation, cannabis dispensaries throughout the state sold 831,600 items over a 29-day period, according to the department. Interestingly, the Department also reported that out-of-state sales for the month amounted to USD$9.2 million, a higher amount than seen in the first month.
"These numbers show there continues to be a strong demand across the state as the most equity-centric cannabis program in the country moves forward in Illinois," Toi Hutchinson, Senior Advisor for Cannabis Control to Governor J.B. Pritzker, said in a statement.
This could be one of the best investing opportunities of 2020
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