Ohio became the 24th state to legalize adult-use cannabis on November 7th , 2023, with voters approving Issue 2 on the Ohio ballot. Under the new legislation, adults over 21 can now purchase and possess up to 2.5 ounces of cannabis. Additionally, Ohio residents will be able to cultivate up to 6 cannabis plants per person at home (12 maximum per household). The new cannabis law takes effect on December 7th, 2023, 30 days after legalization was passed.
The newly formed Division of Cannabis Control (DCC) will be tasked with setting up the Buckeye State’s adult-use market, which is home to roughly 12 million residents and nearly 1.5 million annual cannabis consumers over the age of 21 (per SAMSHA data). The DCC will now have nine months to develop a licensing process and ultimately issue licenses, resulting in a projected launch date of August 2024. Initial estimates forecast Ohio’s adult-use market reaching upwards of $4B in sales by the market’s fourth year. Additionally, reports indicate that Ohio could see nearly $190 million in cannabis-derived tax revenues. Adult-use sales will be subjected to a 10% excise tax and a maximum of 2.25% municipal tax, both on top of an existing 5.75% state sales tax.
With well over 1M annual consumers, the Ohio market is set to be successful once the market is up an running. Opus’ initial projections see the market benefiting from not much neighboring competition, with Michigan as the only neighbor that has legalized adult-use cannabis. Michigan’s seasoned adult-use market has been open for nearly four years, totaling over $6B in sales through September 2023.
Author: Garrett Krisko
About Opus Consulting: Opus Consulting is a business performance advisory firm that helps businesses and executive leadership teams transform, innovate, and accelerate their operations, creating solutions to empower businesses. Launched in 2009 by founder Jacques Santucci, Opus has grown to provide strategic management and turnaround services to clients facing operational challenges and uncertainty across the U.S. With a deep understanding of clients in regulatorily complex industries such as cannabis and alcoholic beverages, hospitality, food, and beverage, agriculture, energy, and with North American Indian Tribes, Opus management consultants leverage their networks and experience in uncertain environments to help businesses and executive leadership teams thrive. Learn more at opuscg.com.