Arkansas medical marijuana sales eclipse records as prices fall

The medical cannabis industry in Arkansas is showing no signs of slowing down, with $44.8 million in sales during February and March 2024, according to the state Department of Finance and Administration.

The state’s dispensaries sold a combined total of 11,681 pounds over the two months, bringing the first quarter total to $68 million and 17,240 pounds.

March recorded a slight increase in sales compared to February, with $22.7 million and 6,069 pounds sold, up from $22.1 million and 5,612 pounds in the previous month. Arkansans spent $23 million on 5,559 pounds of medical marijuana in January 2023 and raked in $2.5 million in tax revenue.

However, Arkansas is selling more cannabis for less money these days. In January and February, the average price per pound for medical cannabis was approximately $4,037 versus about $5,151 in 2023. That represents a decline of around 22% over the year, mainly due to compression caused by growing supply.

The state collected $4.87 million in tax revenue from medical marijuana sales over March and February, bringing the 2024 to-date total to $7.37 million. The revenue is generated from a 6.5% state sales tax and a 4% privilege tax. Since the program began in 2019, Arkansas has collected more than $127 million in tax revenue from medical marijuana sales.

“The state’s medical marijuana industry will soon reach five years in operation as the first dispensary opened in May 2019,” Scott Hardin, spokesperson for the Department of Finance and Administration, said in a statement. “Overall, more than $1.1 billion has been spent since that time across the state’s 38 dispensaries. The Arkansas Department of Health reports more than 102,000 active patient cards.”

The top-performing dispensaries for the two-month period were Suite 443 in Hot Springs, which sold 1,080 pounds, and Natural Relief Dispensary in Sherwood, which followed closely with 1,067 pounds.

In March alone, Suite 443 sold 571 pounds, and Natural Relief Dispensary sold 553 pounds, again outpacing most other dispensaries in the state, many of which typically sell less than 300 pounds every month.

The continued climb in sales and patient count comes more than a year after efforts to pass a recreational ballot measure failed, with voters in the state firmly rejecting the chance to usher in an adult-use program. Another state that saw a vote that same 2022 election was Missouri, which has seemingly flourished into a billion-dollar state industry since then.