Ohio sells 44 million $ of recreational cannabis in its first month

L’cannabis industry Ohio experiences substantial growth since the launch of sales from adult-use cannabis August 6, 2024.

In this first month, cannabis sales exceeded $44 million, according to the Division of Cannabis Control (DCC) of Ohio.

Explosive first month

In the first five days of adult-use cannabis sales, Ohio generated more than $11.5 million in revenue. By the end of August, total cannabis sales, including the medical and adult-use markets, had exceeded $44 million.

State dispensaries, in particular those that switch from selling medical marijuana to the sale of cannabis for adults, have reported unprecedented demand from their customers

Mandy Morton, owner of Locals Cannabis, pointed out to WCMH the dramatic increase in footfall, saying her dispensary had seen «at least six times as many people» as when it catered only to medical patients.

This increase is reflected in weekly sales figures, with the state's dispensaries generating an extra $10 million in revenue each week, despite a slight drop in the average price per gram of flower, from $9 to $8.58 at the end of August.

The launch of Ohio adult-use cannabis program has also had a knock-on effect on the medical cannabis market which has seen a modest increase in sales of around $10,000 per week.

Since the launch of the medical cannabis program in January 2019, total sales have reached over $1.9 billion.

Statewide dispensary restrictions and license caps

Despite the enthusiasm surrounding the adult-use cannabis, Ohio regulators carefully control its expansion.

The DCC recently approved 121 new cannabis retailer applications, but more than a third of these permits excluded locations in Ohio's three largest counties: Franklin (Columbus), Cuyahoga (Cleveland) and Hamilton (Cincinnati). The DCC felt that these areas already had sufficient retail coverage.

The state currently has 123 medical cannabis dispensaries, which switched to adult-use sales in August.

Under Ohio's «10(B) license» program, growers and retailers who already hold a license can apply for permission to open additional stores.

However, the number of dispensaries in major metropolitan areas remains capped to avoid market saturation.

Strict rules for marketing

Ohio's regulatory framework is not limited to licensing, but also extends to marketing and advertising.

All cannabis marketing materials must be approved by the state before being distributed, and penalties for non-compliance are severe. Several companies have been fined for violating these advertising rules since the launch of the adult-use program.

For example, Greenleaf Apothecaries, which operates under the name The Botanist, was fined $150,000 for displaying signs that exceeded the size restrictions imposed by the state, and for hosting an ice cream vendor in one of its dispensaries.

The Botanist had failed to submit its marketing materials for prior state approval, a violation of Ohio's cannabis advertising regulations. This violation was in addition to previous fines totaling $12,500 for prior marketing violations

Another notable case concerns Standard Farms, a medical cannabis processing company based in Garfield Heights, was fined $12,500 for sending an unauthorized e-mail announcing its dual-use license to sell adult-use and medical cannabis. The company had not obtained prior authorization from the DCC for the content of its email.

Ohio's rigorous oversight is designed to ensure that the cannabis advertising complies with state legislation, which prohibits any promotion of cannabis for adult use as having health benefits or therapeutic virtues.

Companies like Bloom Medicinals and Green Thumb Industries were also fined for similar offenses, including posting unauthorized billboards and sending marketing e-mails without prior state approval.

Missy Starr, Vice-President of Marketing at Bloom Medicinals, The Ohio Department of Health and Human Services, for example, has pointed out the difficulty of navigating Ohio's strict advertising rules, especially in the rapidly evolving cannabis market.

Despite these difficulties, she insisted on the importance of respecting the rules, declaring: «We have taken full responsibility for this».