Edibles have hit the shelves in cannabis dispensaries around Florida, launching a new market segment that’s expected to make up $250 million in cannabis sales in the first full year.
A popular cannabis shop in Tallahassee was the first one to start selling edibles on September 2nd. The first sale started about a week after the state health department issued long-awaited edible production rules.
“The industry has been waiting for this for several years,” said Jeffrey Sharkey, president of the Medical Marijuana Business Association of Florida.
“It’s a huge deal for a variety of reasons,” Sharkey said, listing several:
- Edibles sales come at a time the Florida MMJ market continues to grow at a rapid pace, with the number of qualified patients recently exceeding 400,000, up 25% since the beginning of the year, when the patient count was 299,000.
- “In talking to several licensees, they believe edible sales will be in the 20% range” of the total market.
- The profit margins of the products are “pretty robust.”
If edibles wind up making up 20% of Florida’s medical marijuana market, that would mean edible sales would be at around $250 million in 2020, the first full year of sales.
The Marijuana Business Factbook estimates that Florida MMJ revenues will total $950 million to $1.2 billion in 2021. These numbers don’t take edible sales into account.
In 2019, MMJ sales in Florida were estimated to be at $475 million – $575 million. This year in 2020, higher sales are expected, with totals reaching $775 million-$950 million.
Sharkey believes edible sales could cut into some other THC-infused product sales, but the overall revenues should be quite a bit higher.
He doesn’t expect edibles to affect smokable flower sales, which account for roughly 50% of Florida’s MMJ market.