Missouri has created a brand new industry that will bring economic development, scientific innovation, a vibrant retail market, hundreds of jobs, and millions of dollars in tax revenue to the state.
Passage of Amendment 2 by 65.56% of Missouri voters in November 2018, now known as Article XIV of the Missouri Constitution, started the ball rolling. When fully implemented under the present DHSS mandated Constitutional minimum number of licenses, there will be 192 medical marijuana dispensaries, 60 commercial cultivation facilities, and 86 manufacturing facilities.
Additional license types include 14 Transportation and 13 cannabis testing labs. The Department of Health and Senior Services (DHSS) may increase all license types above the constitutionally mandated minimums specified by Article XIV.
The economic benefit in Missouri spreads outward to all types of ancillary business too. From commercial real estate, plumbing, electrical, construction, HVAC, security, internet technology, and myriad additional industries to agronomy, marketing & advertising, accounting, legal professionals, compliance, food scientists, chemists, lab technology, packaging, and many more.
On October 17, 2020 the first medical marijuana dispensaries opened for sales. In just 33 weeks, cannabis sales surged to more than $50 million, or an average of $1.51 million per week, with 2021 weekly averages increasing to $2.5 to $3.5 million per week. By the mid-second quarter 2021, sales sustained multiple $3.0 million dollars per week in back-to-back weeks.
End of year 2021 sales are expected to reach $175 million. Each subsequent year after 2021, analysts estimate major sales increases culminating in a four year estimate of $575 million in 2024. (see chart)
Missouri is not alone in receiving a positive economic impact. The total U.S. economic impact from marijuana sales in 2021 is expected to reach $92 billion – up more than 30% from last year – and is estimated to climb to $160 billion in 2025, according to analysis from the MJBizFactbook.
For every $1 medical marijuana patients spend at retail dispensaries in Missouri, an additional $2.50 will be injected into the local economies throughout the state. That means all Missouri communities benefit with jobs, tax revenue, and development.
Missouri’s next step is to legalize Adult-Use cannabis sales which could in effect double the emerging cannabis economy across the state. In order to unleash our state’s full potential, Missouri must embrace a free-market approach.
Artificial caps limit competition and product supply for medical marijuana patients. This economic model drives up prices and limits the benefits of this new industry. Missouri voters overwhelmingly approved of legal medical cannabis, and now it’s up to the voters to embrace Adult-Use cannabis to increase the benefits for every Missourian.
Cannabis Industry in the US