Delaware cannabis sales are off to a slow start that’s well below both initial projections and other states.
Marijuana retailers recorded $29.3 million in sales since the market launched last August, according to state statistics provided to Philadelphia-based WHYY News.
While regulators are hopeful new licenses can help the market gain momentum, Delaware cannabis sales are pacing far behind the $281 million in annual sales Robert Coupe, the state’s first marijuana commissioner, predicted in 2023, WHYY noted.
What’s slowing adult-use cannabis in Delaware?
Adult-use cannabis is available at only 13 stores in Delaware, all previously licensed medical cannabis dispensaries that paid a $100,000 conversion fee.
While the Office of the Marijuana Commission has granted 16 conditional licenses for recreational-only stores, none of them have opened yet.
Officials are optimistic that five will open by midyear.
Delaware law allows for up to 30 adult-use cannabis stores.
Josh Sanderlin, Delaware’s current marijuana commissioner, remains optimistic about the industry’s success despite its sluggish start.
“We are seeing steady increases across the board,” Sanderlin told WHYY. “We’re rolling out some new licensees.”
“We’ve had cultivators and some manufacturers come online and [more] are coming online, which helps expand the product base, helping lower prices for consumers.”
Neighboring states outpace Delaware’s cannabis sales
At the current rate, Delaware is on pace for $50 million in annual sales, falling well behind other state markets even when accounting for its tiny size.
For example, with a population of 7.6 million people, Massachusetts has more than seven times Delaware’s population.
But at $1.65 billion in annual sales, Massachusetts’ marijuana market is outpacing Delaware’s more than thirty fold.
Delaware’s cannabis sales also pale in comparison to those of nearby New Jersey and Maryland.
- New Jersey, with 9.55 million residents, had average monthly sales of $96.2 million for the six months ending in September.
- Maryland, with 6.26 million residents, recorded average monthly sales of $79.3 million over the six months ending in January.
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Many Delaware residents continue to cross state lines to purchase cannabis, drawn by lower prices and greater availability, WHYY reported.
For example, popular edible brand Betty’s Eddies costs about half as much in Maryland as it does in Delaware, according to the station.
Municipal restrictions also have hindered the industry’s growth.
Many towns, including popular beach destinations, have banned cannabis businesses, while others have imposed stringent zoning regulations.
