It is a good year to be in the cannabis business.
States across the country are seeing massive influxes of tax dollars thanks to legal cannabis programs, and companies are continually ramping production to keep up with the surge of demand. Nowhere is this more apparent than Illinois, where sales for recreational cannabis surpassed $121 million in the month of August, according to state data.
The high-volume period marked the sixth month in a row where cannabis sales generated more than $100 million, putting the state on pace to sell more than one billion dollars worth of recreational products by the end of 2021.
Products Flying Off the Shelves
The month of August proved to be the second-most successful on record for Illinois, only narrowly losing out to July by a seven-million-dollar margin. However, while experts attribute much of July’s success to the influx of tourists attending Lollapalooza, August shone on its own.
In total, consumers purchased more than two million individual cannabis products during this 31-day span. Of those reported sales, more than $40 million came from out-of-state buyers. This helps highlight the fact that demand is high even in parts of the country where cannabis isn’t yet legal.
This upward trajectory isn’t showing any signs of slowing down, either. Last year Illinois sold an estimated $600 million worth of products, and the sales figures slowly climbed each month. This time last year, the state broke its own record with $63 million in sales. That figure has been easily surpassed every single month since — despite the ongoing Covid-19 pandemic hurting nearly every other part of the U.S. economy.
These records also do not keep track of Illinois’ medical cannabis market, which is blossoming alongside its recreational counterpart.
Where Are Those Funds Going?
The government is working hard to put these newly generated tax dollars to good use. The state announced it would be distributing $31 million in grants to communities that have been disproportionately impacted by the war on drugs. Additionally, the government pledged $3.5 million in the month of July to intervention programs dedicated to reducing violence in Chicago.
These steps are just a few of the many positive changes being fueled by the influx of revenue. The state’s new program commits a full 25 percent of all cannabis tax dollars to assisting communities.
Takeaways
Illinois remains only one of only 18 states that have fully legalized recreational cannabis. However, as the tax dollars roll in, and the advantages continue to stack, more parts of the country are expected to follow suit. There are already a number of states considering implementing legal programs of their own within the next year.
Illinois had the foresight to start this program earlier rather than later. And as a result, they are reaping the rewards while most of the Midwest watches from the sidelines.
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