Unlike the Chicago Bulls, Illinois’ recreational cannabis industry was unable to pull off a three-peat and came up short of generating $130 million of recreational cannabis sales in May.

According to Illinois’ Department of Financial and Professional Regulations (IDFPR), the state missed the $130 million benchmark by less than $200,000. Although sales came in lower than those in April, there were few cannabis product sales in May and we consider this to be significant.

When compared to last May, Illinois’ recreational cannabis industry generated $13+ million more sales and sold 500,000+ more cannabis products on a year-over-year basis. We are bullish on the growth of the industry and consider Illinois to be one of the most attractive cannabis markets in the US.

While we would have preferred if recreational cannabis sales in May were higher than April, we would be more concerned if Illinois sold a higher number of recreational cannabis products and generated less sales revenue. When compared to April, the number of recreational cannabis products that were sold fell by more than 50,0000.

While cannabis analysts may have a mixed response to Illinois’ recreational cannabis data in May, we expect the state to report record recreational sales revenue in 2022. In the first five months of the year, the state has generated more than $620 million of recreational cannabis sales.

A Burgeoning Cannabis Market in the Midwest

When compared to the amount of recreational cannabis sales in Illinois in the first five months of 2021, the state has reported a more than 22% increase in sales and we are bullish on this. Going forward, we expect the state to report strong sales growth on a year-over-year basis and are of the opinion that the increase in the number of dispensaries in the state has served as a catalyst for growth.

In December 2021, Illinois reported almost $138 million of recreational cannabis sales which remains a record for the state. Last year, the state recorded a spike in the amount of recreational cannabis sales in the second half of the year and we will monitor how the trend continues this year.

We believe Illinois’ recreational cannabis industry is reaching an inflection point and are bullish on companies that are levered to it. The next few months will be significant for the state’s recreational cannabis industry and we will monitor how companies are impacted by its evolution.

If you are interested in learning more about companies that are levered to Illinois, please send an email to support@technical420.com with the subject “Illinois Cannabis Operators” to be added to our distribution list.

Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.