After Illinois’ recreational cannabis industry ended 2022 on a high note, total sales for the state fell in January and February.
According to Illinois’ Department of Financial and Professional Regulations (IDFPR), the state sold almost $144 million of recreational cannabis products in December. In January, the state reported approx. $128 million of recreational cannabis sales. In February, the amount of recreational cannabis sales fell to approx. $120 million and we find the decline to be significant.
Although the month-over-month declines are substantial, the state sold more recreational cannabis in January and February when measured on a year-over-year basis. In January and February 2022, there were approx. $117 million and $114 million of recreational cannabis sales, respectively.
During February, sales to non-residents decreased from 28.8% in December and 28.2% in January to 25.5%, the lowest since May 2020. We find this metric to be of importance and will monitor how it changes in the coming months.
After a slow start to the year in 2022, recreational cannabis sales jumped higher in March and we will monitor how the trend plays out this year. We expect the amount of sales to non-residents to play an important factor in the state’s performance and we want our readers to be aware of this metric.
We Remain Bullish on Illinois
Although we are bullish on the long-term opportunity in Illinois, the market seems to care less about the operators who are levered to it. After recreational cannabis was legalized in Illinois, we saw a massive spike in interest in the market from multi-state operators (MSOs).
During the last year, we have seen a slowdown on the merger and acquisition (M&A) side of the cannabis industry and Illinois has been impacted by the trend. We will monitor how this trend continues this year and have a favorable outlook on the opportunity for cannabis businesses and brands in Illinois.
If you are interested in learning more about companies that are levered to Illinois, please send an email to firstname.lastname@example.org with the subject “Illinois Cannabis Operators” to be added to our distribution list.
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