In July 2023, Illinois experienced a record-breaking month for cannabis sales, with sellers generating $140 million in revenue, the highest monthly total of the year. Of this, $104.3 million came from sales to state residents, while $35.6 million was attributed to out-of-state customers. The majority of these out-of-state buyers were likely from neighboring Wisconsin, which remained in prohibition while nearby Minnesota recently legalized cannabis.
The 3.5 million cannabis products sold in July marked the highest monthly sales volume since the state’s legalization of recreational cannabis in 2020, surpassing December 2022’s sales of 3.4 million items. In total, cannabis sales for 2023 reached $924.4 million so far, making Illinois the third-largest cannabis market in the country, following California and Michigan.
One factor contributing to the high sales figures is the relatively high prices of cannabis products in Illinois compared to the rest of the United States. According to data from Headset, an organization tracking point-of-sale figures from cannabis dispensaries, the average price per item in Illinois is 89% higher than the national average. This can be attributed to the state’s limited selection of cannabis brands, with only 118 distinct brands compared to Washington state’s over 1,000 and Michigan’s approximately 800.
Due to this limited brand selection, sales in Illinois are highly concentrated, with around 68% of sales coming from the top 10 brands in the market. The report suggests that the high vertical integration of the industry and the small brand selection contribute to maintaining relatively high prices.
Since recreational cannabis became legal in 2020, Illinois’ cannabis industry has seen explosive growth, providing significant returns for current owners and investors. However, concerns remain about achieving equitable access to ownership for Black and Brown communities and others who were disproportionately impacted by the failed war on drugs. Stakeholders are hopeful that further progress will be made in this area to create a more inclusive and equitable cannabis industry in the state.
