The cannabis industry in Massachusetts has shown remarkable growth and resilience in 2023, despite the challenges and changes faced by the state’s regulatory agency. According to the latest data from the Cannabis Control Commission (CCC), adult-use marijuana establishments in the state grossed more than $1.56 billion in sales last year, surpassing the previous year’s sales by $78 million and setting a new annual record for the sixth consecutive year.
Cannabis Sales Reach New Heights in December
The record-breaking sales in 2023 were capped off by the best-ever sales month in December, when the licensed retailers and delivery operators generated $140.1 million in adult-use sales, breaking the previous monthly record from August 2023. Nearly every individual month of 2023 saw higher sales figures than 2022, indicating a strong and steady demand for legal, tested cannabis products in the state.
The CCC, which tracks the sales data from the state’s mandatory seed-to-sale system, Metrc, said that the state is currently tracking 338 marijuana retailers and 21 delivery businesses that have commenced operations. The agency also reported that more than 97,000 certified medical patients in Massachusetts helped account for another $225 million in sales from the 103 medical marijuana treatment centers in the state. The combined total of $1.79 billion for adult-use and medical cannabis sales in Massachusetts also marks a new record for a calendar year.
The cannabis Faces Regulatory regulatory turmoil and Transition
The impressive performance of the cannabis industry in Massachusetts in 2023 came amidst a tumultuous year for the state’s regulatory agency, which experienced a sudden leadership change and the suspension of two top officials. In September 2023, the state treasurer removed CCC Chair Shannon O’Brien from her position, citing a lack of confidence in her ability to lead the agency. O’Brien, who had been appointed as the first chair of the CCC in 2017, filed a lawsuit against the treasurer over the decision, claiming that it was unlawful and politically motivated.
In December 2023, two more CCC officials, Executive Director Shawn Collins and Director of Investigations and Enforcement Julie Johnson, were suspended from their duties, pending an investigation into unspecified allegations. The suspensions sent the agency into further disarray and prompted some lawmakers to call for an independent probe into the CCC’s operations and oversight. The CCC has not disclosed the details or the status of the investigation but said that it is cooperating with the state auditor’s office.
The cannabis industry continues to Mature and Expand Access
Despite the challenges and changes faced by the CCC, the agency has continued to fulfill its mission of implementing and administering the state’s cannabis laws and regulations, as well as expanding access to the industry for individuals and communities most impacted by the war on drugs. In January 2024, the CCC announced that it will begin accepting applications for the fourth cohort of its Social Equity Program (SEP), a free, statewide technical assistance and training program that creates sustainable pathways into the regulated cannabis industry for eligible applicants.
The SEP, which was launched in 2019 as the first of its kind in the nation, offers four tracks of services, including entrepreneurship, management and employment, ancillary business, and re-entry and recovery. The program also provides priority review and fee waivers for certain license types, such as delivery and social consumption. The CCC said that it has received more than 1,000 applications for the SEP since its inception and that more than 200 participants have graduated from the program so far.
Acting CCC Chair Ava Concepcion, who took over the role after O’Brien’s removal, said that the state’s cannabis industry is still a maturing market and that the agency is committed to ensuring its safe, equitable, and effective regulation. “This continued growth confirms that Massachusetts’ regulated marijuana industry is still a maturing market,” Concepcion said. “As more retailers and delivery licensees come online, flower prices start to stabilize, and the stigma surrounding cannabis slowly dissipates—legal, tested products are becoming more accessible, affordable, and approachable than ever before, and that’s reflected in the multiple sales records licensees broke in 2023.”