Amongst its neighbors, Illinois had the recreational-weed market largely to itself since gross sales grew to become authorized in January 2020, and gross sales to residents of border states have been a powerful a part of the market.
Out-of-state purchases made up 25.5% of the $120.5 million in February gross sales, down from 28.2% of total market in January.
“We’re maintaining an in depth eye on Illinois hashish gross sales from out-of-state consumers, given the beginning of rec gross sales in Missouri,” Cantor Fitzgerald analyst Pablo Zuanic wrote in a be aware to purchasers in the present day. “We consider shops close to the Missouri border (as effectively these close to Illinois’ southern tip, and the southern a part of Iowa) might have seen a drop in gross sales of greater than 30%.”
Missouri has a lot decrease hashish taxes at 6%, in contrast with 20% to 25% in Illinois. (Native taxes and the overall state gross sales tax can push the full price in Illinois to about 40%.)
Out-of-state competitors might put much more stress on Illinois marijuana costs, which regardless of being among the many highest within the nation, are down 18% from a 12 months in the past, in accordance with Cantor Fitzgerald estimates.