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Maryland stands as a shining example of a medical cannabis state transitioning smoothly into the recreational market. According to a financial report by Zuanic & Associates, (Z&A), this transition has been particularly beneficial for incumbent medical cannabis players, who have witnessed a remarkable doubling of their sales and a resurgence in prices.
Key Highlights: Sales Surge And Market Share
Pablo Zuanic, chief analyst at Z&A, will be featured as a keynote speaker at the upcoming Benzinga Cannabis Capital Conference, in Chicago this September 27-28. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.
- Official data reveals that August recorded cannabis sales of $91.7 million in Maryland. This figure is a substantial increase from $87.4 million in July (the first month of recreational sales) and a remarkable leap from $42.7 million in June (solely from medical sales).
- The report estimates that top cannabis stores in Maryland are currently raking in an impressive $25-30 million each in sales, significantly surpassing the state average of $10 million per store. This surge in sales has notably favored retailers, with their profits outpacing costs.
- According to data from Headset, flower sales dominated the market with a 51% share, followed by vapes at 24%, edibles at 12%, pre-rolls at 9%, and concentrates at 3%. Flower sales increased by 4 percentage points from the last month of medical sales.
Maryland’s regulator has issued 101 dispensary licenses so far, with plans to release an additional 75 licenses. Among the publicly traded multi-state operators (MSOs), companies like Ascend AAWH, Curaleaf CURLF, Green Thumb GTBIF, TerrAscend TSNDF, and Verano VRNOF each operate a maximum of four stores.
The regulator has initiated a new application period, offering a total of 179 licenses, including 75 dispensary licenses and 8 micro dispensary licenses. This move aims to further expand Maryland’s cannabis market.
Maryland’s Cannabis Market Expansion
Retail flower prices have surged by 64% since March, averaging $9.62 per gram in August. This increase is coupled with a reduction in pack sizes. Interestingly, costs have not risen in tandem with retail prices, suggesting that retailers may be benefiting more than growers.
Store brands, including vertically integrated operators and white-label retailers, captured 25.8% of the flower market share in August, up from 22.2% in March. This indicates a growing preference for in-house brands.
Excluding house brands, SunMed led the net wholesale market with a 21.2% share, followed by District Cannabis at 11.1%. Curio Wellness, Garcia Hand Picked, Grow West, and gLeaf also held notable shares.
The top five brands, excluding house brands, expanded their market share from 46.3% in March to 50.4% in August. However, only two of the top five wholesale brands gained market share during this period.
The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this September 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.