Ohio's debut into the adult-use cannabis market has been nothing short of explosive.
According to the Ohio Division of Cannabis Control (via Cannabis Business Times), within the first five days of sales, from August 6 to August 10, dispensaries across the state amassed over $11.5 million in revenue.
This rapid success suggests Ohio could be on track for approximately $842 million in annual adult-use sales if these trends persist.
Impressive Early Sales
Ohio's medical cannabis market also performed strongly, generating over $8.3 million for the week ending August 10.
When combined with adult-use sales, Ohio is set to approach nearly $1.3 billion in annual revenue, surpassing Michigan's initial year of $510 million in adult-use and $474 million in medical sales in 2020.
On August 6, the official launch of Ohio's adult-use market, 98 dispensaries began sales, with an additional 18 receiving licenses by August 8.
By August 14, regulators awarded dual-use certificates to 120 of 134 dispensaries, allowing them to sell both medical and adult-use cannabis.
Major Industry Players Enter Ohio's Cannabis Market
Meanwhile, major cannabis operators have rapidly moved in to capitalize on Ohio's new market. Ascend Wellness Holdings Inc (OTC:AAWH) started adult-use sales at its Carroll dispensary on August 15, having already begun sales at its other locations in Cincinnati, Coshocton, Piqua and Sandusky.
"We've been thrilled by the enthusiastic response from our local communities," noted Ascend CEO John Hartman in a press release. "We look forward to watching the momentum in the state continue and take pride in the high standards of quality, excellence and care that allow us to meet the needs of returning patients and new customers across this burgeoning cannabis market."
Chicago-based Verano Holdings Corp. (OTC:VRNOF) also launched adult-use sales across its five Zen Leaf dispensaries, reporting significant increases in customer traffic.
"Foot traffic and transactions have already increased two to three times across all five Zen Leaf dispensaries statewide," said Verano COO Trip McDermott.
Strong Consumer Demand And Pricing Trends
Ohio's dispensaries sold 1,285 pounds of adult-use flower and 173,043 units of manufactured products, including edibles and vaporizer cartridges. The average price for a tenth of an ounce of cannabis flower was $26.59, reflecting a 19.7% increase from the previous week's medical-only price.
Looking forward, Ohio regulators plan to issue around 170 additional dispensary licenses for new retail facilities and 50 licenses to social equity applicants.
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