Chart: Massachusetts recreational marijuana sales approach $140 million

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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 maggiec@mjbizdaily.com