Home Economy R.I. recreational cannabis sales top $80M in FY24

R.I. recreational cannabis sales top $80M in FY24

By

Christopher Allen

-

06/28/2024

Photographer — RETAIL SALES OF RECREATIONAL cannabis products have already exceeded $80 million in fiscal 2024, according to the R.I. Department of Business Regulation../PBN FILE PHOTO

PROVIDENCE – Sales of adult-use cannabis products have exceeded initial fiscal 2024 projections through the first 11 months, according to the latest data provided by the R.I. Department of Business Regulation, already amounting to $80.7 million. Sales have climbed annually since recreational use was legalized in 2022 and sales began in December of that year.

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PROVIDENCE – Sales of adult-use cannabis products have exceeded initial fiscal 2024 projections through the first 11 months, according to the latest data provided by the R.I. Department of Business Regulation, already amounting to $80.7 million. Sales have climbed annually since recreational use was legalized in 2022 and sales began in December of that year. The R.I. Department of Revenue had projected $76 million in adult use cannabis sales in fiscal 2024, with more than $15 million in total state and local tax revenue. Spokesperson Matthew Touchette said receipts for June sales will be available in mid-July. State law imposes a 10% excise tax and 7% sales tax, plus a 3% local tax for the municipality where the sale took place. The most recently available monthly DOR report of local cannabis sales tax collections shows operators collected $2.5 million through April 2024. Total retail sales increased 24% in 2023. Newport resident Casey Morse has become a loyal customer to Portsmouth-based Greenleaf Compassionate Care Center, which offers several promotional specials such as “Edible Wednesday,” holiday raffles, and discounts for online orders. The company also does home delivery. “The prices have gone down drastically,” said Morse. “And they have a lot of great incentives too.” Increased sales could help protect prices from plummeting due to an overabundance of supply. The Cannabis Control Commission in April conducted an audit of the state’s cultivator license moratorium that showed cultivators had a combined 5 million grams of unused inventory through 2023. There was a 584% increase in wholesale production in 2023, resulting in a 57% increase in cannabis flower and trim held on reserve There are currently six licensed retailers in the state, including the five compassion centers which all have so-called hybrid licenses, allowing them to sell to both medical and recreational customers. The CCC will decide on the 24 remaining retail licenses and is expected to begin issuing those this year. But demand shows no sign of abating. A recent Gallup poll found 17% of Americans in 2023 reported that they use cannabis, up from 12% in 2021. In Rhode Island, there are now more than 100 cannabis-related businesses and the number of cannabis jobs eclipsed 1,700 in 2023, a 45% increase over 2022, according to the R.I. Department of Labor and Training. Meanwhile, operators in cannabis-related businesses said 2024 has been a very good year. Event organizer Melody Mulcahey, founder and CEO of Not Your Average Events, hosts cannabis-themed functions throughout Rhode Island, such as “Puff n Paint” parties and “Budz and Bingo” comedy nights. She said attendance has spiked significantly. “I think events overall in the cannabis industry grew this year as well,” she said. Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com