Annual cannabis sales in California declined in 2022 for the first time since the state launched its adult-use market five years ago, according to state data analyzed by MJBizDaily.
Retailers generated just over $5.3 billion in taxable sales of recreational and medical marijuana last year, down 8.6% from roughly $5.8 billion in 2021, according to the latest statistics released by the California Department of Tax and Fee Administration.
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Taxable sales in the fourth quarter dipped to about $1.3 billion – the third straight quarterly decline – down nearly 12% from the same period a year ago.
Depressed wholesale prices, which have made products cheaper for consumers, and the continued lack of retail outlets across wide swaths of the state have been two big drivers of this trend, according to California cannabis industry consultant Hirsh Jain.
“California’s ‘dual-licensing’ system has made it very difficult for new dispensaries
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