Navigating Missouri Cannabis Landscape for 2024

In less than a decade, the state of Missouri has reaped the benefits of its forward-thinking approach regarding the controversial greens.

The Missouri Constitution legalized medical marijuana through a ballot initiative in 2018 as Missouri voters favored it. The medical marijuana market was launched in October 2020, which began the state’s steady climb toward the full legalization of cannabis. Later, in less than five years, they made recreational use a reality in November 2022 and became the 21st US state to do so.

Now, individuals can possess up to three ounces of recreational marijuana. As of 2023, the state has seen record-breaking sales in comparison with its previous years of medical sales and adult-use sale predictions.

The first weekend of adult-use sales set the tone, as approximately 200 ready-to-sell dispensaries made over $10 million in sales. As the state approaches the $2 Billion (USD) milestone in cumulative sales, the purchasing trends are showing changes, but the strength of demand is consistent.

Medical marijuana sales and general product prices are decreasing, but that is considered a normal change when adult-use cannabis becomes readily available. Even with changing preferences, the state was able to keep cumulative sales above $100 Million (USD) each month.

Initially, medical dispensaries began catering to the recreational use crowd, and now (post the February 2023 market launch), hybrid adult-use dispensaries are found far and wide. The state made it possible by allowing medical dispensary license holders a chance to gain comprehensive licenses.

Missouri independent farmers are benefiting from the legalization, as they can now participate in the growing hemp industry and produce hemp-derived products. Plus, state-awarded contracts for delta extraction are contributing to the state’s overall sales.

In 2024, the future looks promising for existing dispensaries and hopeful candidates wanting to join the market as adult-use sellers.

The sun is shining bright on Missouri’s cannabis cultivators and dispensaries in the coming year. There’s much to look forward to as a cannabis seller and consumer on a personal and state level.

Three important news stories, as often reported by the St. Louis Public Radio, to look out for are:

1. Second Round of Micro-Licenses

The cannabis regulatory authorities began a program to issue micro-licenses for cannabis operations based on social equity to provide underrepresented groups a chance to participate in the industry.

The first round, although turbulent, was a successful run for many small businesses and enterprises. Initially, the decision was to issue 48 licenses; however, 11 of those were later revoked due to out-of-state applicants and ineligibility.

A second round of applications is expected in 2024, but a solid date or timeline has yet to be released. Challenges remain, particularly concerning hemp-derived THC regulations and the cultivation of six plants per individual. We can expect some development in this regard too before the second round of applications begin.

Hopeful applicants expect the number of previously revoked licenses to also be available for their round. However, no official announcements have announced the total number of licenses available.

2. Consistent Out-of-State Traffic

There is a high number of Missouri residents who keep the state’s demand up, but a key contributing factor is also the out-of-state consumers.

Missouri’s cannabis laws allow out-of-state residents who are above 21 years of age, to purchase cannabis in the state with a valid ID. This law has played a crucial role in boosting their cumulative sales.

Missouri borders eight different states, the majority of which are yet to change their stance against cannabis. For out-of-state buyers, the lack of change or flexibility in their laws, as well as the easy access to Missouri suppliers, keep them coming back in multiples.

This rush of demand isn’t expected to halt any time soon (especially in 2024) since no state has changed its laws in favor of recreational cannabis.

3. Cannabis Tourism Taking off

Thanks to Missouri’s cannabis industry, other business industries have also experienced a ripple effect from the out-of-state traction they’ve gotten. This phenomenon has generated the state’s cannabis tourism.

The influx of short-term visitors or long-term investors is jump-starting many struggling economic activities in the state. Plus, they’re opening more avenues of cannabis-related business activities that don’t require a permit.

These improvements are also seen in areas across the state, far from the existing hubs of economic and tourist interests. One popular location seems to be areas close to the state’s borders, which were previously overlooked.

With cannabis tourism becoming a common sight around the world, the state of Missouri is banking on a golden opportunity to create more jobs and streams of income (on top of the amount they’ve already created in the past four years).

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Missouri’s cannabis industry is showing favorable odds for becoming one of the most successful markets in the country. With astronomical success in its initial years and high hopes for the next few, cannabis enthusiasts in and around the state are in for a treat.