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Ohioans had great expectations for recreational marijuana after voting to legalize personal use of the plant in Nov. 2023. According to data from the Ohio Division of Cannabis Control, total marijuana sales have reached over $2.7 billion as of mid-June. Non-medical cannabis comprises about $587 million of that figure, with Ohio expected to bring on over 114 new dispensaries during 2025.

Meanwhile, a March report from cannabis wholesale platform LeafLink named Ohio as a market poised to contribute more than 75% of cannabis sales growth over the next three years. But observers of Ohio’s fledgling marketplace believe it has a ways to go, especially with Michigan’s well-established scene offering cheaper products and more extensive inventory.

Tim Johnson, a cannabis advocate who advised state legislature on the 2023 marijuana initiative, said Ohio has yet to reach its potential in the adult-use community. Excessive pricing and ineffective marketing have driven customers to buy illegally, cultivate home grows, or head to Michigan, where 45 dispensaries sit right on the border.

“It’s not all the fault of the license holders – it’s got to do with the restrictive rules and regulations of the program,” said Johnson.

One hurdle to Ohio’s expansion appears to have been cleared for the time being. Senate Bill 56, a proposal to significantly alter the Issue 2 adult-use cannabis law, was pulled from the schedule on June 18, just hours before it was set for a vote. House and Senate legislators had been crafting separate versions of the bill before the eleventh-hour decision. A June 24 House judiciary committee hearing concerning an amended version of SB 56 was cancelled as well.

There’s not enough votes to pass the bill,” said Johnson. “The will of the people win this one.”

For now, Ohio must find smarter strategies to keep buyers from leaving the state or turning to the black market, Johnson added. Ohio marijuana prices are currently 204% higher than Michigan, which boasts an oversupplied market and no limits on dispensary licenses.

Johnson said that Ohio cannabis companies leveraged the excitement of a brand-new industry to get customers to pay higher prices.

“They had the opportunity to escalate prices on all products, and people would pay regardless,” said Johnson. “They didn’t realize that Ohio had cannabis before they came, so people went back to personal cultivation, or went to Michigan or the illegal market.”

Challenges of a new industry

Ohio’s recreational space has leveled off since those early days. As of June, the price of cannabis flower in Ohio averaged $18.97 for a tenth of an ounce, a 26% drop since adult-use sales kicked off, according to the state’s cannabis control division.

High upfront costs for compliance, security and dispensary construction led to steeper prices during the outset of Ohio’s adult-use market, said Lisa Zwirner, director of education at Cleveland School of Cannabis , an accredited career institution for marijuana employees.

Read more at: Clevescene 

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