Maryland expects billion-dollar cannabis industry after weed sales soar
BALTIMORE -- Recreational cannabis sales in Maryland are booming since being legalized on July 1st.
The first week of legalized recreational cannabis in Maryland proved extremely profitable, with the state's residents spending more than $20.9 million at dispensaries. This early windfall offers a glimpse of what officials believe could ultimately become a billion-dollar industry for Maryland.
Within the first seven days, both medical and recreational users have contributed significantly to sales figures, greatly benefiting local dispensaries.
"It has definitely boosted our business for certain," Linda Condon, clinical director at Nature Care Wellness, said. "I looked at a week's worth of data and I think we had almost 2000 new customers come through in 7 days."
Recreational users accounted for just over half the total revenue, their purchases contributing more than $10 million in sales.
This group was taxed at a rate of 9 percent, the proceeds from which are directed to a fund intended to aid communities previously harmed by cannabis prohibition.
"That money goes to fund the community investment and repair fund established by the general assembly," said Andrew Garrison, a representative of the Maryland Cannabis Administration. "The fund was created to help communities that have been disproportionately harmed by cannabis prohibition."
Despite the hefty tax, consumers are flocking to take advantage of the newly legalized substance.
"We're excited we're optimistic, and we're going to keep working with the industry to make sure that they're going to meet the demand and are doing so responsibly," Garrison added.
Businesses like Nature Care Wellness in Cecil County continue to accommodate a steady stream of medical card holders and new recreational users. They, along with others, hope to see the industry continue to grow and contribute to the community reinvestment and repair fund, which receives 35 percent of the special tax revenue.
"I think that's great if they can really put that money to where they can help the underprivileged populations and get that education out there. It's phenomenal because it's been such a taboo subject for so long," Condon said.
Looking to the future, officials expect cannabis to become a billion-dollar industry for Maryland by 2025. Starting in January 2024, the state will begin issuing licenses to social equity applicants - individuals who live in an area or have been personally affected by the war on drugs.