By Sales Fall as Prices Drop
Total reported retail cannabis sales in Illinois dropped to about $1.5 billion in fiscal year 2026, down from nearly $2 billion the year before, according to the state’s annual cannabis report. State cannabis retail tax revenue also declined, to $423 million, a reduction of 3.6%.
Part of the drop in sales revenue may be due to a change in the state’s inventory tracking system. The previous BioTrack system counted prediscount prices, while the new Metrc system includes discounts, creating an “apples to oranges comparison,” according to Kimber Beckler, spokesperson for the Illinois Department of Financial and Professional Regulation.
Officials said cannabis sales tax was calculated consistently from year to year despite the change. In an encouraging sign for retailers, sales totals for July and August, the first months to compare under the new Metrc system for both years, showed increases of about 10% and 6.6%.
More Stores, Lower Prices
Statewide, consumers are seeing more choices since the state added 29 new dispensaries, increasing the number of stores by 10%. Illinois consumers continued setting records for buying cannabis products and enjoyed lower prices due to increased competition, the report shows, though sellers’ revenue shrank.
Under a wide-ranging new law, Illinois this year began allowing all stores to sell medical marijuana, began allowing drive-thru windows and curbside pickup, and doubled the amount of cannabis that buyers can keep.
Growing Demand Since Legalization
Ever since the state legalized sales of recreational-use cannabis starting in 2020, consumer demand has continued to grow. The report indicates that demand remained strong in fiscal year 2026 even as total reported sales revenue fell.
The decline in reported sales revenue, combined with the smaller drop in tax revenue, suggests the market shift reflected both lower prices and the change in how the state tracks inventory. Officials maintain that the tax figures provide a consistent year-over-year measure of the market.
