Illinois is one of the largest prominent Cannabis Markets In the U.S., recreational marijuana sales surpassed $1 billion in 2022. In fact, retail stores have been selling since cannabis was legalized in 2020 more than 3 billion dollars at hemp. But in August sales fell and in September, sales were up just 1.0% sequentially.

Year-on-year growth (7.4%) was higher than the 6.2% rate in August. According to that Illinois Department of Health (IDPH) “September continued the trend of steady monthly medical cannabis sales in 2022 between $27 million and $31 million. September’s total medical sales hit the bottom again at $28,055,726.06, the lowest monthly total in 2022. reported local media.

In the current context of market contractionInflation and economic crises, sales partially react to the price level.

Retailer Spreads: Among the highest in the US

To learn more about the economics of the Illinois cannabis market, Cantor Fitzgerald’s Pablo Zuanic offered a comparative price analysis following a survey of 55 stores and their floral SKUs. The analyst explained that retail prices in Illinois were also affected by the market contraction in the US

“IL retail prices (flower) down 15% year-to-date; the drop is somewhat similar to the 13% YTD drop we calculate for PA and the 12% drop for FL,” said Zuanic. He noted that flower prices in Illinois (3.5g package sizes) at $15.69/g are 16% higher than in Pennsylvania ($13.55) and 43% higher than in Florida (January 10, 2009). $.99).

“We also estimate that retailer spreads are among the highest in the country (but down 20% year-to-date),” said Zuanic. “Although IL prices vary by operator, the differences are not as great as PA and FL, with only Curaleaf being 18% below the national average [1% below in PA].”

‘Year-to-date down 20%’

The average IL retailer’s gross margin for flowers is 48.6%, or $7.62 per gram …