Columbia, MO: More than 90 percent of all marijuana-related transactions in Missouri now occur in the legal marketplace, according to estimates commissioned by the Missouri Department of Health and Senior Services (DHSS).
According to the state-funded report, Missouri Cannabis Market Study: Phase 1, state-licensed cannabis markets have largely displaced unregulated ones. (Missouri voters passed separate ballot measures in 2018 and in 2022 legalizing cannabis access for patients and adults.)
“Missouri’s regulated cannabis market is effectively meeting demand and has successfully transitioned into a mature, competitive marketplace,” the report’s authors conclude. “Missouri’s regulated market captures approximately 93 percent of reported cannabis expenditures, indicating strong participation in the legal marketplace. … Although unregulated sources remain present, the magnitude of spending reported through licensed dispensaries substantially exceeds spending reported across all alternative sources combined, suggesting that regulated operators capture the vast majority of cannabis-related consumer expenditures.”
The report’s findings are consistent with Canadian data determining that nearly 80 percent of cannabis consumers have transitioned from unregulated markets to the legal market. (Canada legalized adult-use cannabis sales in 2018.)
Data from US states provide more mixed results. States with a greater concentration of licensed dispensaries and more competitive pricing typically succeed in greater and quicker market capture. By contrast, states with less mature markets and higher pricing tend to be less successful at displacing illicit markets. According to a 2023 survey of US consumers, most adults residing in legal states say that they primarily sourced their cannabis products from brick-and-mortar retail establishments.
Full text of the report, Missouri Cannabis Market Study: Phase 1, is available from the Missouri Department of Health & Senior Services.