Ohio has recently entered the market of states selling recreational cannabis, joining the ranks of Michigan and other states. It has been almost five years since Michigan’s marijuana shops made their first sales, and now Ohio is getting in on the action.
Ohio’s marijuana market officially opened on Tuesday, August 6th, welcoming 120 authorized stores where adults aged 21 and above can purchase cannabis products by presenting a valid ID.
During the first five days, Ohio sales totaled $11.5 million, an average of nearly $2.3 million per day, according to data released by Ohio Department of Commerce. Michigan marijuana is selling at a rate of nearly $9 million per day, more than three times Ohio’s average daily sales.
Michigan’s market has largely remained unaffected by the new competition from across the border, even for shops near the border that heavily rely on sales to Ohio residents. Despite the significant sales in Ohio, the impact has not been felt in Michigan.
Camden Miller, a manager at Pinnacle Emporium in Lenawee County’s Morenci, located along the Ohio border, expressed a lack of concern regarding the current situation. According to Miller, the supply and demand for a certain product in Ohio is not significant enough to cause worry. Similar to Michigan, until the market becomes oversaturated, prices are unlikely to decrease.
“I am confident that in the coming years, it will begin to exert a greater influence.”
Ohio budget forecasters are projecting that sales of marijuana in the state will reach approximately $1.5 billion within the first year. Additionally, it is anticipated that these sales will generate nearly $150 million in new excise taxes.
There are currently only a few Ohio shops that are open within a 30-minute drive from the Michigan border. These include two shops in Toledo, Ohio, and one shop in Bowling Green, Ohio. However, the state’s Department of Cannabis Control has plans to allow more stores to open in the future.
Miller mentioned that Ohio residents appear to be willing to drive longer distances to take advantage of the discounts and variety of products offered in Michigan.
Pinnacle Emporium attracts a significant portion of its customers from outside Michigan, particularly from Ohio. These customers frequently engage in bulk purchasing and typically place orders that surpass the $100 mark, occasionally even reaching close to $1,000.
According to Miller, stores in Ohio are charging nearly $50 for 1/10 of an ounce (1.6 grams) of flower.
