Hemp News Hubb
Advertisement
  • Home
  • Hemp News
  • Hemp Uses
  • Hemp Law
  • Cannabis
  • Contact us
No Result
View All Result
  • Home
  • Hemp News
  • Hemp Uses
  • Hemp Law
  • Cannabis
  • Contact us
No Result
View All Result
Hemp News Hubb
No Result
View All Result
Home Hemp Law

Yearly Cannabis Sales in Washington State Decline by $120 Million

admin by admin
December 21, 2022
in Hemp Law


Cannabis sales in the state of Washington declined by about $120 million over the past year, according to a recent market analysis report, marking the first time regulated sales of pot have dropped in a decade. Retail sales of marijuana fell by more than 8% from July 2021 through June 2022, according to a report on the cannabis markets in Washington, California, Colorado and Oregon from cannabis data analysis firm Headset.

The drop in retail cannabis sales in Washington followed two years of strong growth, largely fueled by the boost in sales associated with the COVID-19 pandemic and the resulting shutdowns of many businesses deemed nonessential. Like many other states with legal cannabis, regulators in Washington state designated marijuana retailers as essential businesses, allowing them to remain open for business during lockdowns. 

“From March 2020 to March 2021, legacy cannabis markets saw drastic increases in growth,” Headset wrote. “In the beginning months of the pandemic for example, Colorado’s total adult-use sales grew by 63% from February to July 2020.” 

During the same period, average monthly sales in Colorado grew by 25.8% compared to the year before, while in Oregon monthly sales grew by 36.6%. Brian Smith, a spokesperson for the Washington State Liquor and Cannabis Board, said that last year’s drop in sales is the result of post-pandemic economic conditions.

“What you’re seeing as a ‘dip’ is really sales returning to normal growth as more people returned to in-person work,” Smith said in a statement quoted by The Seattle Times.

The data showed a decrease in the frequency of visits consumers made to cannabis retailers and the amount of money they spent each time. Headset’s analysis showed that the average transaction recorded at licensed cannabis retailers in Washington dropped by almost three dollars, from $34.14 in July of last year to $31.41 in 2022.

Aaron Smith, co-founder and chief executive officer of the National Cannabis Industry Association, said that a decline in retail cannabis sales has also been documented in other states that have legalized sales of recreational marijuana. The Headset report showed that regulated sales of marijuana declined by nearly 10% in Oregon, while Colorado saw a drop in sales of more than 11%.

“This is not isolated to Washington state’s cannabis industry,” Smith told The Center Square via email. “We’re seeing similar trends across the country.”

High Taxes Hindering The Legal Cannabis Industry

Like many cannabis industry observers, Smith believes that retail marijuana sales are declining because taxes on regulated weed can be excessive compared to other industries, making cannabis available on the illicit market more attractive to consumers already facing higher prices on consumer goods because of international supply chain challenges.

“I believe the primary factor at play is inflationary pressure driving more consumers to procure cannabis in the underground, unregulated market,” Smith said. “Heavy taxes and regulatory burdens on our industry make it very difficult to compete with underground cannabis providers who pay no taxes at all and have no need to follow the state’s rules and regulations for producing and selling cannabis.”

Brian Fitzpatrick, chairman and CEO of Qredible, a cloud-based compliance platform for the cannabis industry, notes that taxes on cannabis in Washington are among the highest in the industry, totaling more than 46% in taxes when the state’s excise and sales taxes are combined.

“My fear is that this constant pressure from the significant taxes will cause companies to cut corners and cost in areas of quality and compliance just to compete with the illicit market,” Fitzpatrick wrote in an email to High Times. “The dangers of the illicit market are clear – they lack safety and regulation standards. If the government wants to promote safe and compliant usage, it should reconsider some relief on the excise taxes.”

The Washington CannaBusiness Association agrees that high taxes could be hindering the growth of the legal cannabis industry.

“On the margins, this high rate may be pushing some consumers to purchase their cannabis products from the unregulated, untaxed, illicit market,” the industry group said in a statement.



Source link

Previous Post

New Study Says Evidence Lacking in Cannabis ‘Hangover’ Claims

Next Post

Kx Family Care, founded by Stephen Marley, announces their debut

Next Post

Kx Family Care, founded by Stephen Marley, announces their debut

Recommended

Cannabis Industry Paid $1.8 Billion in Excess Taxes in 2022

May 11, 2023

I tried THC-O and this is my experience

March 21, 2023

Don't miss it

Hemp Law

Denmark Parliament Inquiry Shows That 320,862 Pounds of Cannabis Have Been Destroyed

September 23, 2023
Hemp News

Little Cannabis Training For Many Canadian Nurses

September 23, 2023
Hemp News

Migraine Sufferers May Want To Eat…

September 23, 2023
Cannabis

CBD Industry Leaders Form Alliance to Advance Regulation of CBD Products as

September 23, 2023
CBD Oil For Dogs With Seizures & Other Ailments [2023 Update] Ministry of Hemp
Hemp Law

CBD Oil For Dogs With Seizures & Other Ailments [2023 Update] Ministry of Hemp

September 23, 2023
Hemp Law

Bitcoin Mining Farm Discovered During Chile Drug Raid

September 22, 2023

© Hemp News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Hemp News
  • Hemp Uses
  • Hemp Law
  • Cannabis
  • Contact us

Newsletter Sign Up

No Result
View All Result
  • Home
  • Hemp News
  • Hemp Uses
  • Hemp Law
  • Cannabis
  • Contact us

© 2022 Hemp News Hubb All rights reserved.