August 2023 Cannabis Market Overview

Published on 
August 11, 2023
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A Glimpse into the July 2023 Cannabis Market Dynamics

The cannabis market in July 2023 showcased diverse trends across the United States. California, with its massive consumer base, topped the sales chart by selling cannabis worth around $382.6 million. However, it's worth noting that the Golden State witnessed a drop in sales by 11.5% compared to the previous year. On the flip side, Maryland emerged as the growth star, with sales surging by an astonishing 103.77% year-over-year.

Year over year sales growth in July 2023.
Total July 2023 cannabis sales by state/province.

Item Pricing

In an examination of July 2023's cannabis market, notable disparities emerge in the average pricing of products across states and provinces. Illinois commands a premium, with its average item price ascending to $33.04—potentially a reflection of its regulatory landscape, taxation nuances, or regulatory limits on licensing. In contrast, other jurisdictions present more modestly priced offerings, influenced perhaps by supply-chain efficiencies, market maturity, or competitive forces. Such divergences in pricing underscore the intricate interplay of regional economic policies, market strategies, and consumer predilections.

Average item price by state/province

Basket Dynamics

When turning our attention to the average transaction value, or 'basket size', Florida emerges as the jurisdiction where consumers appear most willing to commit their dollars, boasting an average of $76.67 per transaction. This suggests not only a higher consumption rate but perhaps a broader array of available products or bundled offerings enticing buyers to spend more. Interestingly, while some states may offer products at a premium, it doesn't necessarily translate to higher overall transaction values, highlighting the nuanced purchasing behaviors of consumers in different regions. Regions with lower average item prices might anticipate larger basket sizes due to volume purchases, but Florida's juxtaposition of both high item price and basket size indicates a robust market demand. As the cannabis industry continues to mature, understanding these basket size dynamics will be pivotal for stakeholders aiming to optimize pricing, product assortment, and overall sales strategies.

Average basket size across state and province.

A Remarkable Shift in Maryland

One of the standout stories from July 2023's cannabis data is the surge in sales growth observed in Maryland. The state reported an astounding median month-over-month like sales growth rate of approximately 124.72%. This sharp increase can be attributed to Maryland's significant regulatory transition: the state moved from a purely medical cannabis market to a fully legalized adult-use market on July 1st. This monumental shift opened the doors for a broader consumer base, bringing in both medical patients and recreational users alike. It's a clear testament to the profound impact that regulatory changes can have on market dynamics and consumer behavior. As Maryland navigates this new landscape, it will be intriguing to monitor how the market stabilizes and matures in the coming months.

On the other end of the spectrum, Arizona experienced the most significant decline in the median month-over-month like sales growth rate, registering a decrease of about 3.34%. This suggests that the cannabis market in Arizona might be facing short-term challenges, possibly due to increased competition, market saturation, or regulatory changes.

As the cannabis market continues to evolve, these insights offer a window into the ever-changing consumer behavior and market dynamics, painting a picture of a sector that remains vibrant and full of potential.

Track cannabis sales and market performance

Key metrics defined

These six key metrics from the previous month will provide you with a pulse check on legal cannabis markets. Below, you'll find data on year over year growth, basket size, and more.

Total Sales

Total monthly sales for the previously completed month.

YoY Sales Growth.

Year over year growth of sales (For example, November 2022 compared to November 2021).

Avg Item Price

The average price of a cannabis item in the most recently completed month.

Avg Basket Size

The average size (in sales $) of a retail basket in the most recently completed month.

Median Store SKU Counts

The number of distinct SKUs sold in the median store in the most recently completed month. Median was used instead of an average to remove the effects of outlier stores.


Median store Like-Store-Sales-Growth MoM - The month over month growth in sales for the median sample store (for example, January 2022 vs. December 2021). “Like stores” are filtered to exclude any newly opened stores or recently disconnected stores.

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