What to Expect When Recreational Marijuana Dispensary Sales Begin in Ohio

What Ohioans Need to Know About the Start of Recreational Marijuana Sales

Listen: Ohio Recreational Weed Sales

Summary

• Ohio is preparing to enter the recreational marijuana market, which is expected to bring high demand, long lines, and elevated prices.
• The state will release applications for existing medical marijuana dispensaries to obtain dual-use licenses, with a deadline of June 7 for submissions.

Ohio is set to enter the recreational marijuana market in the coming weeks, and industry experts predict an initial surge of high demand, long lines, and elevated prices. Drawing on experiences from other states that have transitioned from medical to adult-use cannabis sales, here’s what cannabis enthusiasts and entrepreneurs need to know.

The Transition from Medical to Recreational Sales

Following the approval of recreational marijuana for adults aged 21 and older last November, Ohio is gearing up for its market launch. The state has until June 7 to release applications for existing medical marijuana dispensaries seeking dual-use licenses. Once submitted, these applications will be reviewed by the Ohio Division of Cannabis Control to ensure compliance with legal requirements before granting the dual-use licenses.

Anticipated High Demand and Limited Supply

Expect a flood of consumers eager to purchase legal cannabis. Regular users will appreciate the ease of access, while the “cana curious” will visit to experience dispensaries firsthand, converse with budtenders, and legally purchase marijuana.

During the initial launch period, prices are expected to be high due to a classic supply-demand mismatch. According to Mikaela McLaughlin, SVP of Business Development at SpringBig, the demand significantly outweighs current production capabilities. Ohio’s medical marijuana market reached over $400 million in sales in 2023, indicating strong potential for the recreational market.

Managing Supply Constraints

Given the agricultural nature of cannabis cultivation, new licensees won’t be able to stock shelves immediately. Dispensaries may cap purchases to ensure medical patients have access to necessary products. Initial supplies will likely favor vape oils and edibles, which have longer shelf lives compared to flower.

Kepal Patel, President of Shangri-La Dispensaries, expects this supply crunch to last three to six months. Prices will initially spike but are anticipated to drop as more products become available and the novelty factor diminishes. Over time, the market should stabilize.

Cultivation and Quality Control

Cannabis cultivation involves a detailed process to ensure high-quality product. Trip McDermott, COO at Verano, explains that post-harvest, the flower undergoes curing, similar to fermenting wine, to enhance its terpene profile and overall quality. Rushing this process can compromise the product’s effectiveness and aroma.

Growers are currently ramping up operations to meet future demand. A separate dual-use application process for cultivators is also on the horizon, allowing them to expand grow spaces without differentiating between medical and recreational crops. This expansion will help meet the needs of the broader market once dual-use licenses are granted.

Preparing for Market Launch

Cannabis entrepreneurs and enthusiasts should brace for an exciting yet challenging launch phase. Understanding the dynamics of supply and demand, preparing for initial high prices, and recognizing the time required for cultivation and product availability will be crucial.

As Ohio enters this new era of recreational cannabis, staying informed and adaptable will be key to navigating the evolving landscape. Whether you’re a consumer eager for legal access or an entrepreneur looking to capitalize on this burgeoning market, the journey promises to be both rewarding and transformative.