CannaBusiness
NEVADA LEADS THE WAY IN SALES GROWTH
Written By Haitham A.
O
ver the last two years, the Las Vegas cannabis industry witnessed record-breaking growth numbers. In fact, the state of Nevada, particularly Clark County, is outperforming most of the other legal marijuana markets, and this trend should continue in the summer. Even though the U.S. cannabis industry, at large, enjoyed substantial sales during the pandemic, proceeds began to decline in the latter part of 2021 as the country lifted Covid-19 restrictions and consumers readjusted their spending habits.
was no exception, and Clark County, home to Las Vegas, accounted for the majority of the state’s sales. Equally as important, while cannabis revenues began to decline in mid 2021 in most states’ markets (apart from the ones that only recently legalized its usage), Nevada’s sales figures remained strong.
Cannabis Sales and the Covid-19 Pandemic
For example, Colorado’s cannabis sales went up by nearly 25% from July 2020 to June 2021 in comparison to the previous 12 months. In March 2021, marijuana dispensaries in the Centennial State surpassed $200 million in monthly proceeds, which is close to a 30% year-overyear (YoY) increase from March 2020. In spite of that, in March 2022, revenues declined by 22% YoY and went back to their pre-pandemic levels. In the same vein, taxable cannabis sales in California climbed by about 25% from the third quarter of 2020 to the second quarter of 2021 in comparison to the equivalent 12-months period from 2019 to 2020. Yet, since the end of June 2021, proceeds have declined during each quarter.
Between July 2020 and June 2021, U.S. cannabis proceeds skyrocketed to record highs. Nevada
In fact, this is the case in almost every state that legalized recreational marijuana consumption. A
However, Las Vegas is an exception. The local cannabis market benefited from the returning tourists and reopening of the hospitality sector, which kept its sales numbers strong throughout the second half of 2021 and the first quarter of 2022. As we head into quarters two and three of this year, many businesses are partnering with out-of-state investors, expanding their product lines, and unveiling new facilities that include a smoking lounge on the Strip.
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