Pennsylvania medical cannabis: A first look at market data

Feb 26, 2021

As the 5th most populated state in the US, we would expect an adult-use market to grow rapidly in Pennsylvania. With potential adult-use legalization on the horizon, we took a look at their medical cannabis market to see what we could learn about this unique state.

The Pennsylvania medical cannabis market

Pennsylvania medical cannabis market data: Image 1

In the last 12 months, Pennsylvania medical cannabis sales totaled $910M.

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Medical cannabis sales have grown steadily in the past 13 months, starting at $40M in January 2020 and ending at close to $98M in January 2021. One interesting thing we can see is that the market has not experienced any slowdown due to COVID-19 in March-April.

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Year over year January growth in the Pennsylvania medical cannabis market was 146%, or 2.5 times as high as last year.

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This growth in total sales was driven to some extent by dispensary count, which grew 33% from 86 to 114 dispensaries. Average sales also grew quickly when new store additions were few, and then slowed down slightly from July-November when new stores were added at a faster pace. In total, average sales per dispensary grew by 86% from $460K to $855K from January 2020 to January 2021.

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One area where COVID-19 appears to be having an impact is on average basket size. From January-February, the average basket was in the low $110s but jumped rapidly to $150 with the onset of the pandemic. Basket sizes have since leveled in the $130 to $140 range.

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The average basket size growth was first driven by both items per basket and average item price growth. From August onward, items per basket have returned to their pre-COVID levels while average item price has remained close to $50.

We hope Pennsylvania passes adult-use legalization in the near future, and when that happens we will be ready with even more market insights. Until then, sign up for a free Insights Pulse account to keep track of cannabis market trends.