In a state where the medical marijuana market is well-established, voters will now have the opportunity to decide whether to legalize marijuana for recreational use.
There were cheers throughout the cannabis business nationwide when the Florida Supreme Court earlier this month approved a November ballot on legalizing marijuana in the Sunshine State.
Florida offers the marijuana sector a tremendous opportunity, even though at least 38 states have approved the drug’s medical usage and 24 states have approved it for recreational use. The Sunshine State is one of the most popular travel destinations in the world, has one of the fastest-growing populations in the United States, and has a thriving medical marijuana industry with over 800,000 patients. Approximately 135 million tourists from both local and foreign locations traveled to Florida in the previous year.
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Following the court’s ruling, Headset, a data business focused on marijuana, wrote on its blog, “The legalization of adult-use marijuana in Florida is not just a game-changer for the state’s economy but also a defining moment for the entire U.S. cannabis industry.”
According to Headset, “Florida could see $4.9 billion to $6.1 billion in sales” during the first year of recreational marijuana sales. The state now sells medical marijuana for about $2 billion.
According to Kim Rivers, CEO of Trulieve, the top company in the state with over 130 medical marijuana shops, “Florida is unique.” With a $40 million contribution, Trulieve was a major backer of the initiative to get the referendum on the ballot; however, more cannabis corporations are now participating, helping to raise $15 million for the Smart & Safe Florida campaign.
According to Rivers, Florida is home to major sporting and cultural events that attract tourists, and it borders two other states where marijuana use is restricted: Georgia permits limited medical marijuana use, while Alabama has not allowed the drug’s use for medicinal purposes since it was approved in 2021.
The Florida referendum scheduled for November will permit the use of marijuana by adults over the age of 21, though the state legislature will set the precise limits, taxation policies, and other regulations. After the vote passes, lawmakers will have six months to create a framework for recreational use; however, the state’s current medicinal dispensaries will be grandfathered in.
It’s possible that Florida will follow other states where marijuana is legal for both medical and recreational use and have opted to tax the latter. In states where both are legal, prices for recreational and medical goods may also differ. Patients in Florida who are approved for medicinal marijuana must pay an annual fee of $75 in addition to any fees the doctor may charge for exams and patient reviews.
The medicinal marijuana business in Florida is characterized by fierce competition and aggressive pricing. According to Headset, concentrates like as edibles, vape pens, topicals, and tinctures make up 52.9% of sales, with smoked flower making up 47.1% of total sales. However, experts claim that entry into the recreational sector may result in the introduction of new goods and costs to the market.
Headset mentioned Maryland as a state that legalized marijuana for recreational use in 2023 following the success of its medical program in a blog post. “After legalization, we saw a 2.25x increase in monthly sales, and at market maturity, we saw a 2.4x increase,” the company reported.
Advocates anticipate passage, but it is a high bar. The proposition needs to be approved by 60% of voters. It is unknown how a separate referendum enshrining abortion rights would impact the marijuana vote, although it would boost voter turnout overall.
In a University of North Florida poll conducted late last year, 67% of respondents supported the use of marijuana for recreational purposes. There was broad support for it—55% of Republicans and 78% of Democrats agreed. Every age category showed majority support, with the highest percentage (86%), among those aged 18 to 24, and the lowest percentage (51%), among those aged 65 and above.
Michael Binder, faculty head of the Public Opinion Research Lab, states, “I would absolutely expect all the businesses to increase market share.”
According to Jason Erkes, chief communications officer of Cresco Labs, which has 33 Sunnyside retail dispensaries in Florida, “there’s really no stereotype of a medical user.” “There is a lot of space for expansion in Florida. Regulating it and luring illegal users into the legal market are the problems.
Despite his opposition to the vote, Republican Governor Ron DeSantis is not anticipated to obstruct its legalization; thus far, the Florida Chamber of Commerce has been the only voice against it. According to Binder, “I don’t see any organized opposition to it.”
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Disclaimer: The opinions and suggestions expressed in this article are solely those of the individual analysts. These are not the opinions of HNN. For more, please consult with your doctor
