2023 Legal Marijuana Sales in Arizona Surpass $1 Billion
- Since January 2021, the cannabis industry has generated over $4 billion, with about $2.5 billion coming from recreational sales. As of September, cannabis sales in Arizona surpassed the $1 billion mark for the year.
- Medical cannabis sales in Arizona have been declining since a peak of $73.4 million in April 2021. In contrast, recreational sales have consistently been more than $80 million since March 2022, reaching a market record of $100 million in that month.
- The state of Arizona has collected over $391 million in marijuana excise taxes since the recreational program launched. These taxes are distributed among community colleges, public safety departments, the Arizona Highway User Revenue Fund, and the justice reinvestment fund.
Arizona Cannabis Sales Surpass $1 Billion as Recreational and Medical Markets Thrive
Since the start of recreational sales in January 2021, the cannabis industry has garnered over $4 billion, approximately $2.5 billion of which comes from recreational sales. As per data from the Arizona Department of Revenue (ADOR), the state’s cannabis sales crossed the $1 billion milestone for the year in September, with medical sales making up around a third of the adult-use recreational market.
Medical sales in September dipped slightly to less than $27 million from August’s $28.7 million, marking the lowest medical sales figures since the advent of the recreational program. Since June 2022, medical sales have not exceeded $40 million and show a consistent decline from a peak of $73.4 million in April 2021.
Recreational sales, on the other hand, have remained above $80 million since May, after hitting a market record of $100 million in March. The recreational market only fell short of the $80 million mark twice since March 2022.
ADOR frequently adjusts the numbers in its reports. For example, initial figures for medical sales in July were reported as $26.1 million, but the most recent release raised this to $27.3 million. Similarly, estimates for recreational sales in July have been updated from $77.4 million to $80.5 million.
As of 2023, medical cannabis sales have totaled approximately $267 million with recreational sales nearing $797 million, bringing the total sales for the year to almost $1.1 billion through September.
Medical and recreational sales last came close to equal figures in October 2021, when adult-use sales were $65.8 million and medical sales were $64.4 million, marking the first time recreational sales surpassed medical sales.
From tax collections, the state received $2.4 million and $2.2 million from medical sales in August and September respectively, and $13.7 million and $12.8 million from recreational sales. The excise tax on recreational marijuana sales has amassed about $174.5 million so far in 2023. Since the program’s inception, more than $391 million has been collected in marijuana excise taxes.
The Arizona Department of Health Services updates medical cannabis program participation monthly and is generally ahead of ADOR by two to three months. As of October, 121,047 patient cardholders were registered, down from 123,796 in September. At the medical market’s peak, there were 299,054 qualifying in January 2021 before the introduction of recreational sales.
In October, Arizona’s medical cannabis consumers purchased 4,474.75 pounds of marijuana in various forms, a decrease from 4,621.28 pounds reported in September. The total for the year through October was 47,075.6 pounds.
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