This state is next in line for adult sales

Missouri will begin legal adult cannabis sales on February 6th. Last month, on December 8, 2022, consumers were legally allowed to possess up to 3 ounces of marijuana, and the Department of Health and Elderly Services began accepting requests for existing medical facility licensees to convert to a fully legal facility. Once approved, each dispensary can decide when to begin selling adult-use cannabis.

According to industry analysis firm BDSA, sales of adult-use cannabis in Missouri will reach $277 million in the first year, with total market sales forecast for 2023 of $730 million. There are currently approximately 208,000 patients using medicinal cannabis in Missouri, approximately 3% of the state’s population. However, the number of cannabis users in the state is expected to increase to 600,000 when used by adults, which is about 10% of the population.

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Jobs Jobs Jobs

According to MoCannTrade, the cannabis industry was responsible for one in 10 new jobs created in Missouri in 2022. With adult sales beginning in early 2023, cannabis companies across Missouri will expand and shut down operations to meet anticipated demand.

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“There is no question that the impact of Amendment 3 will be beneficial to Missouri workers. Swade alone expects its staffing requirements to increase by 35-45% prior to beginning recreational retail sales,” said Jason Nelson, CEO of Swade Cannabis. “Over the next 12 months, the industry will see immense growth and that means many new jobs will be created for the state.”

Avoid pitfalls

While other mature states have struggled with high taxes, falling prices and slowing growth, Nelson believes Missouri will avoid it.

“Missouri is in a unique position compared to other states,” Nelson said. “We are launching an adult market in response to voter desires, suggesting there is built-in demand from the start. Typically, there is a percentage of consumers opposed to cannabis in a medicinal-only market that becomes less reluctant in an adult-use market, and we expect Missouri to be no different.

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“The challenge for the state’s industry will be to avoid some of the pitfalls that other states face. Neighboring states have circumstances that make cannabis tourism among adjacent populations a viable prospect for Missouri. Whether compared to a significantly higher product tax rate in Illinois or neighboring states like Kansas, Iowa, Nebraska, and Tennessee that are not represented under a regulated cannabis program, Missouri is well-positioned to take advantage of a robust selection of quality cannabis products available at affordable prices. “

This article originally appeared in Green Market Report and has been republished with permission.