Since medical marijuana sales first became legal in the state of Ohio, it’s become clear just how healthy the market will be, as sales approach nearly $1 million. As the dust settles around this first influx of revenue, the results look good for patients.
The results are trickling in from medical marijuana’s first month of sales in the state of Ohio, and they already look great for great for the state’s patient population. Sales from the first few weeks following legalization in the Buckeye state reached nearly $1 million, despite the fact that only a few dispensaries in Ohio are currently open.
These robust numbers beat out the first months of states that have legalized medical marijuana in the past, including Hawaii and Massachusetts. And while prices seem high now, that shouldn’t worry prospective patients — market analysts expect that prices will dip as the industry becomes less regulated. With sales high, the market growing, and competition only expected to get hotter, the future for Ohio’s medical marijuana users has never looked brighter.
This Early On, Higher Prices Are Par for the Course
Medical cannabis patients are currently paying $50 per ounce, a relatively steep price compared to other states that have legalized medical cannabis. But that’s actually fairly typical in places where the medical marijuana market is brand new — it takes time for the market to deregulate and for competition to begin to drive prices down. In fact, medical cannabis prices aren’t far out of line with other highly regulated state programs.
“When you’re in a highly regulated market, it costs more to produce,” says Jason Erkes, CCO for cannabis company Cresco Labs. “Our pricing is right in line with the range we are in other states. As more growers come online and more dispensaries open, the market will adjust a little bit.”
Other Economic Indicators Look Strong
These robust sales figures are even more impressive when you consider that just eight dispensaries are currently licensed to operate in Ohio, with three of them having opened just weeks before revenue was recorded in February. This staggered rollout was done intentionally to avoid demand outstripping supply, and by the looks of patient growth, it seems that concern about meeting new demand was well-founded.
Last month, the state was reporting a total of 12,900 patients and 470 caregivers having completed registrations to purchase cannabis. As the Medical Board of Ohio considers petitions to add more medical conditions that would qualify Ohioans for medical marijuana recommendations, like anxiety and depression, it seems likely that this number will continue to grow rapidly.
Experts Believe Market Is Set for Success
Those with experience in the medical marijuana industry say there’s reason to be optimistic about the market’s future in Ohio. Matt Darin, the CFO of Grassroots Cannabis, wrote in an op-ed for Fox Business that early high prices are typical of medical cannabis rollouts, and that conditions in Ohio point to a very prosperous future for the sector.
“It’s poised to be one of the largest U.S. medical cannabis markets,” Darin writes, “and a precursor to further legalization in the Midwest states that have yet to legalize any form of cannabis use.” He argues that more dispensaries will open up, more doctors will become certified to make recommendations, and more patients will seek those recommendations, creating a huge market that will bring in over $300 million in revenue over the next few years.
Seeking Medical Cannabis in Ohio
If you live in Ohio and think that medical marijuana might be an effective treatment for your current health condition, Lakewood Medical Clinic can help. Schedule a consultation today and let the team of trained specialists at Lakewood help you determine whether medical cannabis represents the right course of treatment for you and your symptoms. We can work with you to find a treatment plan that works with your budget.