Delaware retail weed sales in market’s first months fall far short of estimates

What are journalists missing from the state of Delaware? What would you most like WHYY News to cover? Let us know.

Delaware’s new recreational marijuana market is off to a slower start than expected, with stores ringing up $29.3 million in sales in the seven months since the industry launched, state statistics provided to WHYY News show.

That’s generated about $4.4 million in tax revenue for the state, based on the state’s 15% tax on cannabis sales.

The figures fall far short of what the state’s former marijuana commissioner estimated in 2023 after lawmakers legalized cannabis for adults over 21 and created the framework for the regulated market.

Delaware’s fledgling industry also has a long way to go before it can approach the per-capita sales in neighboring New Jersey and Maryland, a WHYY News analysis found.

Sales in New Jersey started in April 2022, and in Maryland began in July 2023. So while Delaware struggled for two years to launch its retail industry, many residents became accustomed to driving across the state line to buy legal cannabis.

Delaware finally began selling recreational weed on Aug. 1 at 13 existing medical marijuana dispensaries that paid $100,000 apiece for so-called conversion licenses.

The state Office of the Marijuana Commissioner has also granted conditional licenses to 16 prospective recreational cannabis retailers, though none have yet opened. A total of 30 retail-only stores are allowed by law.

The bottom line for now is that tiny Delaware is averaging $4.2 million a month in retail sales over seven months. Projected over a full year, that would amount to a little more than $50 million in sales and $7.5 million in tax revenue.

Delaware’s first marijuana commissioner, Robert Coupe, had predicted in 2023, however, that the state would have $281 million in annual sales that would generate $42 million in taxes.

But Coupe stepped down last January as Gov. Matt Meyer was about to take office, and Josh Sanderlin replaced him.

Sanderlin told WHYY News this week that he’s satisfied with retail sales figures to date for flowers, gummies and other cannabis products.

“I’m happy with how the program’s rolling out. We are seeing steady increases across the board,” Sanderlin said.

“We are rolling out some new licensees. We’ve had cultivators and some manufacturers come online and [more] are coming online, which helps expand the product base, helping lower prices for consumers. And most importantly, right now, we are working towards trying to ensure that more retailers can come online.”

Zoë Patchell, president of the Delaware Cannabis Advocacy Network, has been critical of how long it took Delaware to open its recreational market and said she’s not surprised that sales totals are only a fraction of previous predictions.

“I think it’s obvious that when prices for the same product in neighboring competitive legal markets are considerably lower, it’s not difficult to see why consumers are less eager to patronize Delaware’s legal market,” Patchell said. “A simple Google search shows that the same product is offered for much less in neighboring competitive states as close as Maryland.”

Patchell specified prices for Betty’s Eddies, a brand of edible products licensed in several states.

A search by WHYY News found that one store in Delaware sells a five-pack of 10-milligram “Smashin’ Passion Chews” for $18 plus tax, which brings the total to $20.70.

A store in Baltimore, however, sells a 10-pack of 10-mg “Smashin’ Passion Chews” — twice as much — for $20, plus Maryland’s 12% tax, for a total of $22.40.

“So consumers aren’t stupid,” Patchell said, “and it’s easy to see what the going rate for cannabis is.”