Customers spent over $39.2 million during the first month of sale of legal weed in Illinois. A quarter of the revenue came from residents out of the state.
The sale made to residents of Illinois amounted to over $30.6 million as per the numbers updated by the Department of Financial and Professional Regulation of Illinois state.
Illinois became the second state in the Midwest after Michigan on the 1st of January 2020 to legalize the sale of recreational marijuana. None of the states bordering Illinois sell it. The managing director of cannabis research company, Brightfield Group, Bethany Gomez says that Illinois has a really strong advantage as it is located right in the center of a prohibition territory.
The dispensaries around Illinois are facing a heavy product shortage. This compels the customers from turning to dried marijuana buds. The shortage in dispensaries is expected to last for several months.
“The shops selling the drug have been imposed a buying limit. Many of them have limited the sale of recreational marijuana to two or three days a week. The demand is soaring despite the shortage. This hints that Illinois is a strong market for weed.”
The shortage in supply is not meeting consumer demand. A greater growth can be expected in the marijuana market once there is a healthy balance established between the supply and demand.
Lines form in front of Mission South Shore marijuana dispensary. The owner of the dispensary, Kris Kane says that this is quite normal at this point of time. Half of the customers of the dispensary are from Indiana. This is because the dispensary is located just 15 minutes from the border.
Marijuana is still illegal as per the federal laws. Carrying it across the state lines is forbidden. As per the laws, the customers holding out-of-state drivers’ license have a restriction on purchase limit when compared to the in-state residents.
Dispensaries that are located farther from the border have witnessed a surge in buyers from out of the state as well. Midway Dispensary witnesses more customers carrying luggage. Neal McQueeney, the principal officer states that most of the customers are either headed towards the Midway Airport or coming from it.
The Herbal Care Center served customers from 11 different states on the 1st of January 2020. The manager says that there have been people carrying an ID card of different states since the sales commenced in Illinois.
The cannabis shops in Illinois fetched $40 million in just the first month of the legal sale of recreational marijuana. Almost 1 million products were sold during the 31-day period across the state. The successful launch has paved the way for many opportunities for entrepreneurs who have been waiting to monetize the potential of the market.
The Cannabis Czar of Illinois mentioned in a press release that the administration is striving to provide multiple entry points into the industry. Transporters, dispensary owners and a lot more opportunities are being offered for ensuring legalization is accessible and equitable for all the residents of the state.
The Governor joked in an address recently that the legalization of recreational marijuana “gives us a chance to collect tax revenue from the residents of Wisconsin, Missouri, Iowa and Indiana.”
Juliana Stratton, Lt. Gov. too contributed to the sale of the cannabis products by purchasing edible marijuana gummies. As Illinois is the first largest state in terms of population, the success was expected. About $10 million in cannabis products were sold by the end of the first week. Colorado made $14 million in sales in its first month after legalization in January 2014.
Although much has been said about the economic potential of recreational marijuana, the officials of the state are emphasizing strongly on enacting the reform in an appropriate manner.
They want to promote social equity in the industry while implementing justice provisions. The Department of Financial and Professional Regulation said that a portion from every sale will be used to develop communities harmed from the failed war on drugs.
Pritzker announced that over 11,000 people with cannabis convictions had been pardoned before marijuana sales went official on Jan 1st. The finance department also invited applications in a press release for transport licenses, craft growers and cannabis infuser.
Social equity applicants would receive grants, technical assistance, fee waivers and reductions, and also low-interest loans.