Maryland Medical Cannabis Sales Reached $1 Billion Since Rolling Out
The legal sale of medicinal cannabis in Maryland was approved in late 2017. Since then the industry has continued to see increased revenues from all parts of the state.
The industry has been growing like weed (pardon the pun).
Every link in the supply chain of the medical cannabis industry in Maryland couldn't be happier. From the growers to the retailers, everyone is making money.
Just recently it was announced that the total cannabis sales in the state from the onset till now has surpassed a billion dollars. This is a not-so-easy feat to pull off.
General Overview Of Medical Cannabis Sales in the United States
The United States as a whole has one of the highest annual sales of medicinal marijuana products. The industry in the US could one day rake in over $159 billion annually disrupting some other industries as it grows exponentially.
The US cannabis industry has a market that is second to none. Although the population of the country plays a role in the huge revenues being gotten in the cannabis industry, it can not be denied that the United States is the crown of the global cannabis movement.
Other states that have amassed over a billion dollars in sales since medical cannabis sales were permitted include California, Florida, Colorado, Massachusetts, and others that are nearing the $1 billion mark. These States with high cannabis sales have been predicted to generate at least 23.9 billion USD in 2024 alone.
That brings us back to the Maryland scene.
Medical Cannabis Sales in Maryland Now Worth $1 Billion
Making the next 1 billion dollars in sales would take less than the 40 months it took to make the first.
To attain $1 billion status in total retail sales in the Medical Cannabis Industry alone in less than four years is praise-worthy.
This stunning announcement was made during a public meeting by the Executive director of the Medical Cannabis Commission in Maryland, William Tilburg.
In the course of this meeting, Mr. Tilburg explained that the MMCC predicts the next billion will be achieved in 20 months or less. This is because the market is maturing, and as it matures people are being enlightened on why they need the medical CBD products. The market is on an exponential growth pace.
Growth Of The Maryland Medical Cannabis Industry
When the industry was approved in December 2017, it wasn't an overnight success. Growth was very slow. The fast pace was reached in recent months.
The growth observed last year was massive. Some analysts attribute this growth to the COVID-19 Lockdown.
For you to understand clearly. Observe the following amounts.
In 2020, there were quarterly realized sales of $115 million. While in 2019, the sales realized quarterly barely yielded an average of $60.5 million. This means that between both years, 2019 and 2020, the total amount of sales almost doubled from $242 million in 2019 to $460 million in 2020.
This year alone, sales realized in the first quarter were over 135 million dollars. Meaning the Maryland Cannabis Industry might realize over $550 million in total sales this year. Mind-blowing!
Reasons For The Massive Growth
As was mentioned earlier, the fast pace has been attributed to the lockdown. Mr Tilburg went on to explain that two factors were involved. Both of which are;
Additional businesses
Increased number of patients
Statistics gotten from MMCC's data show that throughout 2020, the total number of sick patients authorized to receive medical cannabis increased by almost half of the previous year. From an average of 87,000 to 123,000. 41% increase to be precise.
It was also gathered that each month in 2020, the MMCC certified at least 3,000 new patients. Each month in 2021 has also seen an additional increase in the number of certified patients.
This in turn caused an increase in the collection of dispensaries scattered across the state. This collection grew by almost 10%.
The recent trend may have spurred the majority of the licensed cannabis growers in the stage to increase their level of production. This way there would be enough supply to meet the expected rising demand in the state. And this demand does not seem to be reducing any time soon.
One of these cannabis-producing firms includes Culta grow firm. The growing firm has significantly expanded the size of its facility, as well as its production capacity to three times its previous size. It was reported that about 6 million dollars was invested into the outdoor cannabis cultivating enterprise to attain this level of production.
Another cannabis-producing firm that has completed expansion procedure is Cecil County's SunMed Growers. This group recently expanded its greenhouse operation with an $18 million investment cost. There are other plans in place to put up additional structures before the end of this year.
So, you can very well see that plans are being put in place to up the supply in response to the massive demand growth.
Future Plans for the Maryland Cannabis Industry
Right now, the only significant landmark that can be achieved in the Maryland cannabis industry would be the organization of the recreation use of cannabis. This would propel the industry forward and also boost the economy of the state.
Unfortunately, the latest effort to successfully legalize this act in the Maryland General Assembly fell through. The BDS research firms have given positive projections that another attempt would come up in 2022 and it might be successful this time.
Conclusion
The Maryland Cannabis Market is one of the fastest-growing cannabis markets in the United States. When the recreational use of cannabis finally gets legalized, the states realize not less than $250 million each quarter by 2024. Making a whopping 1 billion dollars in total sales in a calendar year.
Also, keep in mind that demand would significantly increase as more medical benefits of the marijuana plants and their components are discovered. And as expected, the state would at a point issue out more licenses to cannabis producers statewide to meet the demand.
Fun and profitable times are coming...
THE CANNABIS PLANT MARKETS, READ MORE...
