California’s annual cannabis sales fell in 2022 for the first time since adult-use launch

Mj Biz Daily write

Annual cannabis sales in California declined in 2022 for the first time since the state launched its adult-use market five years ago, according to state data analyzed by MJBizDaily.

Retailers generated just over $5.3 billion in taxable sales of recreational and medical marijuana last year, down 8.6% from roughly $5.8 billion in 2021, according to the latest statistics released by the California Department of Tax and Fee Administration.

Taxable sales in the fourth quarter dipped to about $1.3 billion – the third straight quarterly decline – down nearly 12% from the same period a year ago.

Depressed wholesale prices, which have made products cheaper for consumers, and the continued lack of retail outlets across wide swaths of the state have been two big drivers of this trend, according to California cannabis industry consultant Hirsh Jain.

“California’s ‘dual-licensing’ system has made it very difficult for new dispensaries to open in the years since adult-use sales began,” said Jain, the principal of Los Angeles-based Ananda Strategy.

Under California rules, cannabis businesses must obtain local authorization from the city and/or the county in which they operate before they can apply for a state license.

This system has caused major delays in issuing annual licenses since the launch of adult-use sales in 2018.

Read full article at

https://mjbizdaily.com/californias-annual-cannabis-sales-fell-in-2022-for-the-first-time-since-adult-use-launch/

 

STATS

Calendar Year1 Quarter2 Excise Tax Cultivation Tax Sales Tax Total Tax Taxable Sales
2022 Q4 $108,045,315 $0 $113,600,546 $221,645,861 $1,273,317,480
2022 Q3 $135,403,051 $0 $115,914,817 $251,317,868 $1,294,730,605
2022 Q2 $147,688,374 $27,797,259 $125,910,698 $301,396,331 $1,411,750,487
2022 Q1 $155,072,502 $37,685,502 $118,813,877 $311,571,881 $1,327,688,715
2021 Q4 $160,983,530 $40,090,205 $129,451,952 $330,525,687 $1,445,373,416
2021 Q3 $177,453,322 $43,418,896 $127,955,144 $348,827,362 $1,429,266,150
2021 Q2 $180,434,103 $42,521,801 $138,905,009 $361,860,913 $1,565,098,988
2021 Q1 $162,167,667 $40,367,175 $118,261,146 $320,795,988 $1,340,624,407
2020 Q4 $154,606,825 $42,688,451 $118,040,735 $315,336,011 $1,331,895,518
2020 Q3 $169,515,480 $43,386,101 $119,280,025 $332,181,606 $1,343,093,888
2020 Q2 $137,720,149 $30,867,256 $101,973,139 $270,560,544 $1,153,228,932
2020 Q1 $112,877,640 $27,646,731 $77,778,420 $218,302,791 $877,039,109
2019 Q4 $86,897,511 $24,662,913 $70,925,039 $182,485,463 $799,185,962
2019 Q3 $84,887,286 $22,809,108 $65,839,748 $173,536,142 $742,701,526
2019 Q2 $75,731,295 $23,037,243 $60,370,850 $159,139,388 $681,999,378

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