The Illinois Cannabis Market Is Showing Signs Of Maturing..........But Not In A Good Way - Technical420

Last week, Illinois’ Department of Financial and Professional Regulations (IDFPR) reported almost $127 million of recreational cannabis sales in June.

During the first half of 2022, the agency has reported more than $750 million of recreational cannabis sales in Illinois and we consider the state to be one of the most attractive cannabis markets in the United States (US).

Compared to the first half of 2021, recreational cannabis sales in Illinois have increased by more than 20% (based on sales data from the IDFPR). We expect the state to sell more recreational cannabis in 2022 than it did in 2021 and remain focused on finding operators that are benefiting from the growth of Illinois’ recreational cannabis industry.

A statistic from Illinois’ recreational cannabis sales data in June which stands out is the number of cannabis products sold. When compared to June 2021, there was a more than 500,000 increase in the number of recreational cannabis products sold in 2022. Despite the increase, the state reported approx. $11 million increase in recreational cannabis sales.

Our key takeaway from this data point is that there is price compression in Illinois and we will continue to monitor how the metric changes in the future. Based on the data available, the average price for a recreational cannabis product fell by approx. $4.

Another important takeaway from Illinois’ data is related to how recreational cannabis sales increased by $12.2 million from June to July in 2021. When compared to July 2021, we do not expect the state to report as strong of growth. If Illinois can match last July’s growth, recreational cannabis sales in Illinois would be close to $140 million for the month and we would consider this to be a bullish indicator for the market.

During the last year, the market seems to care less about the companies that are capitalizing on Illinois. We do not agree with the market’s response and will continue to monitor how these operators continue to grow.

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.