TRUL - Cannabis Industry Sales Trends: Is Momentum Building or Slowing? A State-By-State Analysis For 3Q23 | Benzinga
Is the cannabis industry losing steam or gaining momentum?
According to a report by analyst Pablo Zuanic at research firm Z&A, a comprehensive analysis of sales trends across 17 states reveals a wide variance in the cannabis industry's performance.
While seven states witnessed a sequential decline in sales, the other ten posted growth in the third quarter of 2023.
Mixed Growth in Various States
Massachusetts and Florida both saw mid-single-digit sequential growth, while Illinois, New Mexico, and Washington reported low single-digit growth according to official state data.
However, sales experienced low single-digit declines in Missouri, Ohio, Oregon and mid-single-digit declines in California, Colorado and Nevada. Arizona faced a sequential drop in the low teens, although this was partly attributed to seasonal factors.
Sales Trends by Market: Notable Performances
Maryland, Rhode Island, Michigan, Maine and Connecticut demonstrated notable performances. Maryland's total sales doubled compared to the second quarter due to the initiation of recreational sales. In the latest quarter, Maryland saw a 2.2x increase in sales, totaling $270 million, thanks to the start of recreational sales on July 1, 2023.
Rhode Island and Maine, smaller states with 3Q23 sales of about $60 million each, experienced approximately 20% growth.
Michigan, with $830 million in the second quarter of 2023, reported a 10% increase due to store openings and price stabilization.
Connecticut experienced an 8% growth with $74 million in sales, affected by a delayed approval process for recreational ...