Zuanic & Associates new report explores the state of the US cannabis industry for Q2 of 2023
Reviewing state-by-state trends, the report provides a summary of cannabis stocks, explaining that the current state of cannabis stocks is looking up, but that price deflation is still a factor.
For example, the report highlights that in Illinois, the impact from Missouri recreational legalisation is less than what was expected, and Florida saw Q2 deflation decrease, with year-on-year trends improving in Arizona between Q1 and Q2.
“On the whole, this may mean better sales trends for 2Q, although profit margins may change little from market-related factors,” it states, adding that in most states, “it may be better to be a retailer than a grower/processor.”
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Notably, the report highlights that Michigan stands out, seeing a 39% year-on-year sales growth and has continuing acceleration compared to recent quarters.
The state, which currently has 694 active dispensary licence operators with recreational licences and 305 with medical licences, saw its Q2 sales up 55%, reaching $792 million. Recreational sales represented the bulk of these sales at $770 million, however, medical sales were down 31%.
Additionally, the report highlights that it may be better to be a retailer than a grower/processor in the majority of states, based on the data. However, Massachusetts is breaking this trend “where we think growers are in a better place than retailers (especially, the larger growers)”, the report writes.
