It seems that residents of Oregon have been on a spliff shopping spree throughout the pandemic, with retail sales of cannabis increasing 409% since May 2019.
Unlike some other US states, Oregon allowed cannabis businesses to remain open during the COVID-19 pandemic. While other retail industries are suffering, cannabis businesses are profiting from the pandemic – with cannabis sales skyrocketing.
According to the Oregon Liquor Control Commission, Oregon’s total cannabis sales reached $103 million in May 2020, compared to $64.5 million in May 2019. Although this is impressive, it isn’t a fluke. Cannabis sales hit $89.5 million in April (a 44% increase) and $84.9 million in March (a 37% increase).
From these numbers, it’s clear that Oregon’s citizens have had a pretty chill pandemic experience. Discussing the surge in cannabis sales, State Economists had this to say:
Some of the increases in sales of usable marijuana are in part due to rising prices, but underlying demand is up as well.
However, it seems that there’s a bit more to this story than that. While the rise in sales was partially due to the increase in cannabis prices and home delivery, it seems cannabis use is changing. As more and more Oregonian’s embrace cannabis, the number of sales for edibles and concentrates are increasing.
That means that not only is Australia behind on cannabis legislation, but we have officially become uncool! While the rest of the world starts innovating with cannabis products, we are still unable to get CBD oil to a tiny percentage of our population. How progressive of us.
Over in Oregon, the impact of cannabis sales will be felt state-wide. Cannabis sales are expected to bring in $260.5 million in tax revenue during the 2019 – 2021 biennium. This is because Oregon taxes adult-use retail products (like alcohol and cannabis) by 17% – making their state a pretty penny and a half.
As Oregonian’s leave their house after the pandemic is over, however, they may opt to spend their money elsewhere. Although this won’t end the industry, it shows us an important lesson – the financial impacts of cannabis legalisation in other countries are overwhelmingly positive. Not only does cannabis legalisation increase tax revenue, but it also boosts tourism.
If Australia wants to boost its economy during the 2020-21 financial year, perhaps cannabis is an avenue we should start to seriously consider.