Ohio’s Recreational Marijuana Sales Surpass Medical Sales as Prices Decline
COLUMBUS, Ohio — Marijuana prices in Ohio remain higher than in neighboring Michigan, but costs have steadily dropped since recreational sales became legal in August 2023.
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In the four months since dispensaries were authorized to sell recreational cannabis, total sales have approached $350 million, with 62% attributed to nonmedical purchases, according to the Ohio Division of Cannabis Control. Recreational sales have consistently outpaced medical sales during this period.
Will Marijuana Prices in Ohio Continue to Drop?
The price of cannabis in Ohio has shown a noticeable decline. In August, the average cost of one ounce of dried flower was $261.50. By December, the price had dropped to $211—marking a $50 decrease in just four months, based on data available through Dec. 16.
Ohio tracks marijuana sales through multiple data points, including total revenue and transaction volume. While total sales reflect revenue growth, fluctuating prices make it challenging to determine how many units have been sold. Tracking transactions provides further insight into purchasing trends.
Trends in Medical vs. Recreational Sales
Transaction data highlights the growing dominance of nonmedical marijuana purchases. Recreational sales have accounted for approximately 5% more of total transactions each month compared to their share of total revenue.
For instance, in August, nonmedical purchases represented 58% of total revenue but made up 63% of total transactions. By November, recreational sales accounted for 65% of revenue and 70.5% of transactions, showing a consistent upward trend.
Impact of Taxes and Pricing Differences
The discrepancy between transaction volume and revenue suggests recreational customers make smaller, more frequent purchases than medical marijuana patients. This pattern is notable given that nonmedical cannabis carries a 10% excise tax, unlike medical marijuana, making recreational products more expensive overall.
Despite the added tax, recreational sales have dominated, generating $215.3 million in revenue from nearly 3 million transactions since legalization.
What’s Next for Ohio’s Cannabis Market?
As prices continue to drop and recreational sales expand, Ohio’s marijuana market is expected to evolve further in 2025. Observers anticipate ongoing shifts in consumer behavior, pricing strategies, and policy adjustments that could influence the industry’s growth.
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