After six full months of operations, Massachusetts adult-use marijuana sales continue to rise, with aggregate sales approaching $140 million through the last week in May.
The market enjoyed a solid launch the week of Thanksgiving 2018, and Massachusetts retailers have seen average month-over-month sales increases of 21% between December 2018 – the first full month of sales – and May 2019.Average monthly sales to date are just under $23 million, with May sales of $34 million through May 29.
The state’s total aggregate of $139 million comes from sales of more than 3 million units of cannabis products, with average per-unit spending of $44.
As seen in other markets, raw flower comprised just under half of all dollar sales, with concentrates and infused products – both edibles and nonedible products (i.e., topicals) – collectively accounting for just over 50% of sales.
Raw and infused pre-rolls, kief and shake/trim each represented less than 1% each of dollar sales.
Massachusetts was the first on the Eastern seaboard to legalize recreational use, and its retailers were expected to benefit from out-of-state traffic from population-dense New England neighbors in addition to sales to local residents.
Analysts with Crain’s New York estimate that up to 50% of adult-use sales in Massachusetts may be coming from New Yorkers.
The recently released Marijuana Business Factbook estimates 2019 recreational sales in Massachusetts will be in the range of $450 million-$500 million.
Here’s what else you need to know about the situation:
- During the last week of May, average spending per customer was $44.30. Average units sold during this period were 29,140.
- As of late May, the Massachusetts Cannabis Control Commission (CCC) had issued final licenses to 58 retailers, 48 cultivators, 42 manufacturers and three testing labs.
- In late May, the CCC voted 3-2 to approve a proposal that would launch a future social consumption pilot program in 12 volunteer communities across Massachusetts. Although this move has the potential to create new business opportunities in the state, a firm timeline for the pilot program has not been set.
Maggie Cowee can be reached at [email protected]