Massachusetts' Record-Breaking Cannabis Sales in 2023
Massachusetts has achieved a new milestone in the cannabis industry, with retailers selling a record $158.7 million worth of legal cannabis products in December 2023. This surge brought the state's total sales for the year to an impressive nearly $1.8 billion, according to the Cannabis Control Commission's latest figures.
Adult-Use Sales Dominate the Market
The majority of this revenue, over 87 percent, came from adult-use cannabis sales, amounting to nearly $1.57 billion. Medical marijuana sales also contributed significantly, totaling about $226 million in 2023.
December Sales: A Significant Contributor
December's record sales, primarily from adult-use purchases, played a crucial role in achieving the monthly record. Medical marijuana sales also saw a boost, but the market has been relatively stable or declining over the past year.
Cumulative Sales Since Legalization
Since the opening of adult-use retailers in late 2018, Massachusetts has seen more than $5.54 billion in total sales, with medical marijuana receipts totaling $1.20 billion over the same period.
Medical Marijuana Sales Trends
Medical marijuana sales have slowed since the launch of legal sales to adults, a trend observed in other states as well. More eligible patients are opting to obtain cannabis through adult-use retailers or grow at home.
Strong Year for Adult-Use Sales
Adult-use sales had a particularly strong year, helping the state set a series of monthly records in mid-2023 before reaching another high point at the year's end.
Taxation and Revenue from Cannabis Sales
Medical marijuana is not subject to state tax, but adult-use products incur a 10.75 percent excise tax, a 6.25 percent sales tax, and up to another 3 percent municipal tax. In 2022, the state generated more tax revenue from marijuana than alcohol for the first time.
Psychedelics Legalization and Legislative Changes
Massachusetts is also considering changes to laws around psychedelics. A psychedelics legalization initiative may head to the state's 2024 ballot, proposing a regulatory framework for lawful and supervised access to psychedelics at licensed facilities. The legislature will decide whether to enact the reform or let it proceed to the ballot.
Local Psychedelics Reform Efforts
At the local level, policies to deprioritize enforcement of laws against psychedelics have been enacted in six cities, reflecting a growing interest in the therapeutic potential of these substances.
Future Prospects in Cannabis and Psychedelics
With the cannabis industry's robust growth and the evolving landscape of psychedelics legislation, Massachusetts is at the forefront of a significant shift in drug policy and market dynamics.