Marijuana Fair
Ohio's medical marijuana market could generate between $200 and $400 million in annual sales, according to estimates by trade publication Marijuana Business Daily.
(Gillian Flaccus, Associated Press)
COLUMBUS, Ohio -- Sales of medical marijuana in Ohio could reach $400 million, making it one of the largest medical marijuana markets in the country, according to a preliminary analysis by national trade publication Marijuana Business Daily.
The publication estimates Ohio retail dispensary sales could total between $200 million, on the low end, and as much as $400 million two or three years after the state's new medical marijuana program is up and running.
At the top end, the state would bring in an estimated $23 million in sales tax revenue at the current rate, if the state decided to apply sales tax. The estimates are based on Ohio's qualifying medical conditions and business regulations and sales in other states.
Chris Walsh, editorial director of Marijuana Business Daily, said the actual revenue will depend on how many patients sign up for the program and what rules and regulations are drafted for businesses and physicians.
"Ohio would definitely be a powerhouse in the industry and a lot of that is because of the state's population and the inclusion of pain on the medical conditions list," Walsh said.
Under the new Ohio law, patients with about 20 medical conditions can buy and use marijuana if recommended by an Ohio-licensed physician. The law takes effect Sept. 8, but rules and regulations including how many marijuana cultivation and retail licenses will be awarded won't be known for months or more.
Ohio's medical conditions list includes chronic, severe or intractable pain. In states that include pain, such as Colorado and Michigan, between 1 and 2 percent of the overall population register for the medical marijuana program. In Ohio, that would be between about 116,000 and 232,000 people.
Colorado's medical marijuana registry is near the 2 percent mark and the state has about half the population of Ohio. Medical marijuana sales there totaled $408 million in 2015 and recreational sales totaled $587.8 million.
Marijuana Business Daily has published market analysis reports for every other state market, and Walsh said their predictions usually are close to the actual numbers.
The publication released the figures Monday ahead of two "crash course" workshops it is holding this week in Ohio. Walsh and a handful of industry experts will speak to would-be entrepreneurs in Cleveland on Wednesday and Cincinnati on Thursday. The cost to attend is $399.
Walsh said it's not too early to start planning a medical marijuana business and the course is designed to cover banking, security and other topics that businesses in all legal states face.
"It's a very complicated industry," Walsh said. "We've seen people fail and fall on their face when they didn't do their due diligence."