final data from California Department of Taxes and Fees Administration shows a decline in California cannabis sales in 2022. The drop in sales is the first since the adult-use product was launched in 2018.
In 2021, the state collected $5.77 billion in adult-use cannabis sales, but the 2022 figure only reflects the past year’s $5.3 billion, an 8.2% decline.According to the interview forbesMany believe that high taxes and a lack of sufficient pharmacies have contributed to this decline.
Cannabis growers in California have been trying to tell lawmakers about the issue. “Most of us farmers have tried to tell the state. [regulators] Huckleberry Hill Farms founder Johnny Casali said: forbes“Decreasing retail sales mean customers are tired of paying exorbitant taxes and are buying from friends of friends and guys on the street corner,” Casali said in 2022. I explained how all the products were sold and still experienced a loss of $50,000.
The loss could be due to the drop in the price per pound of cannabis across the state.American financial services company Cantor Fitzgerald Wholesale cannabis prices were $665 a pound, down 26% year-on-year.according to New leaf data serviceSince then, wholesale cannabis prices have fallen more than 50% between 2017 and 2022.
California has more than that 800 licensed cannabis dispensaries, and growers grow more than they can afford. Casali hopes things will improve. “Orders for this season have already been placed.” kasari said“But without federal legalization, I don’t know how to solve the supply and demand problem.”
Cantor Fitzgerald analyst Pablo Zuanic said increased sales during the pandemic from 2020 to 2021 boosted California’s revenue. In addition to current inflation, Zuanic believes a return to more normal sales has also contributed to the decline. He expressed his belief that 2023 will be the year California’s cannabis industry recovers, comparing an 8% decline in 2022 to a 68% increase in 2020.
Glass House Brands founder Graham Farrar said: forbes He doesn’t think Californians will be smoking less in 2022, just that the black market is selling legal flowers. If it’s double the price, just have a bath tub gin.” farah said“I think if we can lower the tax on consumers, we’ll see more people in the legal market. And I think we’ll actually be able to collect more tax revenue.”
With cannabis sales in general declining overall, some cannabis brands are leaving California. Garcia Hand Picked recently announced its exit from California. “We are taking a pause in California,” said Holistic Industries, the brand’s parent company. We want to grow, so we are in the process of selecting new local partners for growing, producing, selling and distributing hand-picked Garcia in California.”
Some regions are trying to help cannabis growers, such as Sonoma County, which recently eased the tax burden for some growers based on the size of their business. Most recently, California’s $20 million grant was allocated to “provide resources to local governments to expand access to regulated cannabis products to underserved areas.” rice field.
In mid-February, the last California federal prisoner jailed for cannabis was finally released. After spending 15 years in prison, Luke Carmazzo was released with the help of Weldon his project. “The feeling is surreal. We have been working for this day for a long time,” Scarmazzo wrote on his Facebook. “This was a huge win for my family, friends, community, and the entire cannabis movement. I’ll take some time to enjoy this, but definitely still have a lot of work to do — my people are free.” must become—and the hard work begins now.