Arizona Cannabis Market Soars, Surpassing $1.4 Billion in Sales Last Year
Recent data from the Arizona Department of Revenue reveals that regulated marijuana sales in Arizona surged past $1.4 billion in the previous year, marking the third consecutive year of licensed cannabis sales exceeding $1 billion in the state. In 2023, adult-use cannabis sales accounted for over $1 billion, while medical cannabis sales contributed nearly $350 million, as reported by the Arizona Mirror.
The consistent growth in Arizona’s cannabis market signifies a significant milestone for licensed cannabis businesses in the state. Luke Flood, Senior Vice President and West Regional Leader for Curaleaf, a prominent multistate operator, expressed optimism about Arizona’s success in the cannabis industry. Flood emphasized Arizona’s emergence as one of the leading markets in the country for Curaleaf.
According to data from the Arizona Department of Revenue (ADOR), adult-use cannabis sales reached $1.1 billion in 2023, comprising approximately 72% of total cannabis sales for the year. This dominance by adult-use cannabis sales underscores a substantial shift since recreational marijuana sales began in Arizona in 2021, where it accounted for only 45% of the total cannabis market.
Josh Hirschey, President of Timeless, an Arizona-based concentrate manufacturer, attributed the milestone to efforts aimed at destigmatizing cannabis. Hirschey emphasized the growing consumer demand for high-quality cannabis and the strategic approach of Arizona brands in normalizing the plant.
Monthly sales of recreational marijuana have consistently ranged between approximately $80 million and $93.5 million since July 2022, with a peak of $100 million in March 2023. However, January 2024 witnessed a slight decline in adult-use sales, dropping below $80 million for the first time in 18 months.
On the medical cannabis front, sales totaled $348 million last year, indicative of a declining trend as the medicinal cannabis market in Arizona contracts. This decline aligns with a decrease in the number of registered patients in Arizona’s medical marijuana program, which currently stands at 111,168, down from its peak of 299,054.
Tax revenue from cannabis sales continues to bolster various social services in Arizona. Last year, cannabis excise taxes amounted to $172.8 million, contributing significantly to state revenue. A portion of these taxes supports community colleges, fire departments, law enforcement, and public health services, particularly benefiting communities disproportionately affected by the War on Drugs.
Despite the stabilization of Arizona’s cannabis market, industry players remain optimistic about future prospects. Eivan Shahara, CEO of Mint Cannabis, anticipates a busier 2024 and emphasizes the industry’s role as a significant job creator. Shahara highlights the cannabis industry’s potential to generate employment opportunities and contribute to economic growth, reflecting its status as one of America’s fastest-growing job sectors.
