The Massachusetts CCC’s report reveals that between Jan. 1 and Dec. 18, 2022, the state collected $1.42 billion in adult-use gross sales. In a breakdown of gross sales by month, the state collected a reasonably regular quantity of gross sales, the best being $132.4 million in July and $130.8 million in August, and the bottom with $110.1 million in February and solely $73 million in December (since recording ended on Dec. 18, this gross sales information is decrease).
The final week of gross sales by day main as much as Dec. 25 have been notably excessive, beginning at $3.2 million on Monday, Dec. 12 reaching a top of $5.1 million on Saturday, Dec. 17, and dropping to $4 million on Dec. 18. Shoppers primarily bought flower throughout this week particularly, with a complete of over $11 million, adopted by vape-related merchandise at $6 million, and pre-rolls and edibles practically the identical, each round $4 million every.
Massachusetts legalized adult-use hashish in November 2018, and since then the state has collected $3.9 billion in whole product sales. It first reached the $1 billion mark in October 2020, then $2 billion in July 2021, and $3 billion in Might 2022.
Medical hashish gross sales in 2022 throughout the identical interval reached $260.2 million, though a gradual decline is seen after the best medical gross sales months of March and April, which collected $24.7 million and $24.4 million respectively. The Massachusetts CCC’s graph typically reveals a lower in gross sales from that time, all the way down to $20.6 million in November, and at last $12.1 million in December.
Gross medical hashish gross sales simply hit $929.6 million this December, which nonetheless displays regular general development since November 2018. Though medical hashish went dwell in Massachusetts in January 2013, sales data prior to November 2018 shouldn’t be obtainable previous to when the CCC took management over the Medical Use of Marijuana Program.
Over the previous 4 years since adult-use hashish started, the price of flower has decreased over time. With a couple of exceptions in March, April and Might 2020 because of the pandemic, the typical worth of flower per gram has remained round $14 till June 2021. After that time, worth per gram continued to lower each month, touchdown at $7.76 per gram in November 2022, and rising barely to $8.07 in November 2022. This coincides with CCC information exhibiting the state’s historical past with hashish cultivation. By way of vegetation harvested, the state started with solely 79 vegetation in November 2018; adopted by 247,793 in November 2019; 699,938 in November 2020; 1,413,311 in November 2021; and at last an enormous bounce to 2,655,494 vegetation in November 2022.
In line with Boston.com, Brandon Pollock, CEO of Concept Wellness, mentioned that the completion of many cultivation services during the last yr has contributed to the imbalance of provide and demand. “The final 12 months have been pretty drastic. I’d say on the wholesale market, costs is perhaps down roughly 50% in a single yr, which is, for people which can be solely on the cultivation aspect of the enterprise, particularly troublesome,” Pollock informed Boston.com.
Joseph Lekach, CEO of Apothca, additionally defined that this imbalance has been current for a while. “A yr and a half, two years, three years in the past, it wasn’t good both. It was unbalanced to the excessive aspect, now it’s unbalanced for the low aspect. So that is briefly good from a buyer’s perspective,” Lekach informed Boston.com. “However numerous producers and cultivators will reduce prices wherever they’ll simply to remain alive. You’re going to have an inferior product popping out. It’s a double-edged sword.”
Lekach additionally estimated that based mostly on this present pattern, many hashish firms can be out of enterprise by subsequent yr. “We don’t know the place the underside goes to be. I feel that there’s numerous firms struggling due to this,” mentioned Lekach. “I feel you’re going to see numerous firms going out of enterprise in all probability subsequent yr and into 2024.”