Maryland’s Cannabis Boom: Record Sales and Community Benefits Post-Legalization

In Maryland, the cannabis industry is experiencing a remarkable surge in sales following the state’s legalization of recreational use six months ago. This upward trend has been consistent, with record-breaking increases noted month after month.

The Maryland Cannabis Administration reports that the state has garnered an impressive revenue of nearly $700 million from cannabis sales in just one year. Notably, the sales for medical use have skyrocketed by over $200 million in merely five months.

The leap in adult-use cannabis sales is particularly striking, jumping from a modest initial sum to over $270 million. At the forefront of this growth is SunMed Growers in Cecil County. Established in 2018 with an investment of $100 million in their facility and a 60-acre farm, SunMed has seen their sales double since legalization.

Jake Van Wingerden, the president of SunMed Growers, highlights the positive impact of legalization on the company’s financial stability. He proudly shares that SunMed has recently been able to offer a significant pay raise of $5 per hour to all staff members, a move made possible by the thriving sales.

The financial benefits extend beyond the cannabis businesses to the wider community. Recreational marijuana purchases in Maryland are taxed at 9%, and from July to September alone, the state collected over $12 million in taxes from adult-use cannabis sales. These tax revenues are funneled into various county funds and initiatives, supporting health, business, social equity, and the general state fund.

In a significant move this year, Maryland is issuing 75 new dispensary licenses to enhance the number of legal retailers in the market. This initiative, based on a lottery system, aims to boost market diversity, particularly targeting communities that have been disproportionately affected by past drug policies.

Baltimore City leads the way in this first allocation round, receiving 11 licenses. Montgomery and Prince George’s counties are also set to receive a substantial number of licenses, with each county slated for 9.

Van Wingerden emphasizes the importance of this initiative, noting that Maryland has previously faced challenges in ensuring diversity among cannabis growers. The state’s efforts to award more licenses to disadvantaged individuals are seen as a vital step towards fostering inclusivity and success in the industry.

SunMed Growers, as the largest cannabis farm in Maryland, views these developments as encouraging for market share and diversity. The company, along with others in the industry, is supportive of the state’s ongoing efforts to create a more equitable cannabis market.