Arizona’s cannabis industry has surpassed the $1bn mark in the year to September 2023, as the industry shifts away from medical towards adult-use.
According to new figures from the Arizona Department of Revenue (ADOR), reported by the Arizona Mirror, total cannabis sales in the year-to-date hit nearly $1.1bn.
Adult-use sales accounted for nearly three times the amount of medical cannabis sold during the period, with medical sales reaching an all-time low of $267m.
Medical cannabis sales fell from $28.8m in August to $27m in September, marking the lowest levels of revenue since adult-use cannabis sales began in January 2021, declining consistently since a peak of $73.4m in April 2021.
Meanwhile, adult-use sales topped $797m in the year to September, with sales dropping from $85.8m in August to just above $80m in September.
This shift in market sizes has reportedly continued to expand since October 2021, when recreational sales overtook medical for the first time, and the phenomenon is reflected in patient numbers.
In October, medical cannabis patient numbers fell from 123,796 in September to 121,047, less than half the size of the market in January 2021 (299,045).
Both industries continued to contribute significant tax revenues to the state throughout the period however, with the 16% excise tax on recreational sales yielding a total of $174.5 so far this year, while medical tax revenues were $2.4m and $2.2m in August and September respectively.