Arizona’s recreational marijuana sales hit yearly low in November, continuing market decline
The revenue department’s latest sales and tax report also included substantial upward revisions to previously reported figures. October’s adult-use sales were adjusted up by $7.2 million to $82.5 million, while September saw a $7.9 million upward revision to $75.2 million. These revisions follow a pattern of significant adjustments as late tax returns are processed.
Arizona’s market contraction mirrors trends seen in other mature cannabis markets. . .
Arizona's tanking cannabis revenue means cheap weed for customers. Will it stay like that?
Ray Stern
Arizona Republic
High-quality edibles in Arizona are going for under $10 for a 100-milligram package, he said, a price point that's slightly higher than in some other states with legal marijuana but lower than residents have historically paid.
- Chance Chambers of the Arizona Black Cannabis Trade Association said while it's true the companies sell their products for a cheaper price now, "there's been a decline in the product" at dispensaries, he said.
"A lot of people are questioning the quality."
How does hemp affect the price of marijuana?
Another reason experts give for the decline in sales is the intoxicating hemp market, which is now based on what many call a loophole in the 2018 federal Farm Bill.
The market now includes products like drinks containing hemp-derived delta-9 THC being sold in at least one major retail alcohol chain.
- Even cannabis companies that own local dispensaries have gotten into the racket with online sales of hemp products with concentrated THC that aren't subject to Arizona's 16% excise tax on recreational marijuana.
Will the price of marijuana go back up in Arizona?
An industry rebound probably wouldn't mean higher prices for customers in Arizona, where a high level of cultivation will still go on, according to Demitri Downing, founder of the Marijuana Industry Trade Association of Arizona.
An industry rebound probably wouldn't mean higher prices for customers in Arizona, where a high level of cultivation will still go on, according to Demitri Downing, founder of the Marijuana Industry Trade Association of Arizona.
- Only higher demand would boost prices, he said, and only federal legalization is likely to create substantial heightened demand.
- Many people still won't consume marijuana because it remains illegal under federal law, Downing explained.
Reach the reporter at rstern@arizonarepublic.com or 480-276-3237. Follow him on X@raystern.
Arizona dispensaries now delivering recreational marijuana
Uploaded: Jan 11, 2025
No comments:
Post a Comment