Rhode Island Marijuana Sales Expected to Exceed 2017 Sales by 33%

Medical marijuana sales in Rhode Island are steadily increasing, and are on pace to surpass 2017 sales by at least 33 percent. It is typical to see increases annually as perceptions of the plant change.

In 2017, sales totaled around $30 million, the Providence Journal reports. In 2018’s first quarter sales were about $13,555,000. Those sales have generated $1.47 million in tax revenue for the state.

Norman Birenbaum said, “We have seen anywhere from a 30-70 percent increase from year to year. It means more people coming into the program are finding relief from this product. …It shows there is just a growing demand for this product in this state.”

Adding more dispensaries in the state has sparked some controversy but regulators say it is necessary to increase variety of the strains available and decrease patient cost.

Rhode Island has just over 18,000 patients, so dispensaries are arguing that more aren’t needed to serve the existing patients.

It is estimated that cultivators will sell about 3,011.7 pounds of marijuana. That should garner a wholesale value of about $4,443,754.  In 2017 1,874.1 pounds of marijuana was sold to dispensaries at a wholesale value of $3,540,680. The difference represents a decrease in price per gram of about 22-percent.

The wholesale average price per gram in 2017 was $4.16 whereas in 2018, it’s $3.25.

Each dispensary is selling grams on different “shelves” at different prices. The wholesale prices compared to the prices patients pay represent a significant markup.

More cultivators are coming onboard and they would like to have more options than just 3 dispensaries to sell to. Some cultivators are being advised to scale back a bit until it is determined exactly what will happen with more dispensaries potentially being licensed and such.

If new dispensaries are approved, Birenbaum expects most to be storefronts only and not cultivation facilities as well.