Cannabis is Big Business in Illinois
2023 has been a banner year for Illinois’ cannabis industry (so far) and this is a market that we are excited about.
During the first quarter of the year, the state sold more than $380 million of recreational cannabis products (according to Illinois’ Department of Financial and Professional Regulations). As of May 1st, more than $500 million of recreational cannabis products were sold in Illinois.
When compared to the prior year, sales of recreational cannabis products in the first quarter in Illinois increased by 5%. Although the numbers are not eye popping, we remain bullish on the state’s cannabis industry.
We Remain Bullish on Illinois
Although we are bullish on the long-term opportunity in Illinois, the market does not seems to care as much about the operators who are levered to it. After recreational cannabis was legalized in Illinois, we saw a massive spike in interest in the market from multi-state operators (MSOs) and this was a trend that excited us.
During the last year, we have seen a slowdown on the merger and acquisition (M&A) side of the cannabis industry and Illinois has been impacted by the trend. We will monitor how this trend continues this year and have a favorable outlook on the opportunity for cannabis businesses and brands in Illinois.
From a company analysis standpoint, we expect Illinois’ cannabis market to factor into the growth of businesses that are levered to the state. In prior years, sales to out-of-state residents played an important role in the growth of the market and we will monitor how this trend continues.
