Illinois sets another record for recreational cannabis sales in 2023, but purchases by out-of-staters decline

Illinois set another record for recreational cannabis sales in 2023, with more than $1.6 billion in sales — but sales to out-of-state residents showed a significant drop. Sales to Illinois residents increased by 14%, but sales to out-of-state visitors fell by 14%, reflecting increased competition from Michigan and newly legalized marijuana in Missouri and Minnesota. Out-of-state customers accounted for one quarter of revenue, but with Wisconsin lawmakers considering legalizing medical marijuana, those sales are likely to decrease further in the future. Recreational cannabis sales have increased each year in Illinois since legalization in 2020. Exact medical cannabis sales figures were not immediately available, but a state chart showed sales appeared to exceed $400 million. That would be a slight drop from previous years, but still yielding an overall total near $2 billion. Overall, Illinois saw a 7% increase in retail cannabis sales, resulting in $417.6 million in cannabis sales tax revenue. That money will help fund programs in poor and violent neighborhoods, substance abuse education and treatment, and policing. December saw a record for the most sales in a month, at $154 million, the Illinois Department of Financial and Professional Regulation reported. There are 177 adult-use cannabis stores in Illinois, including 67 social equity dispensaries. Another 188 applicants still are in the process of receiving their full dispensary licenses from IDFPR. Many minority businesses have been unable to open due to a lack of financing, plus delays due to the COVID pandemic and inflation. The limited number of suppliers has left Illinois with some of the highest cannabis prices in the country, along with some of the highest taxes, driving some customers out of state. The state saw a 15% increase in the number of cannabis items sold, meaning the price per item is falling. “From Day One, my administration has put equity first to build the most accessible cannabis industry in the nation,” Gov. J.B. Pritzker said. “Our work will continue to repair past harm while providing opportunities for communities across the state and creating a more prosperous future.” rmccoppin@chicagotribune.com