Recreational Cannabis Could Soon Be Legalized In Ohio
Vote Now for Ohio Adult-Use Cannabis
Early voting to legalize adult-use cannabis in Ohio commenced last week will continue through the Nov. 7 election. The bill will legalize the possession and sale of adult-use cannabis and establish the Division of Marijuana Control to oversee all licensing activities. This will be a historic win for Ohio cannabis, and while it’s exciting to look into the future, it’s important to remember how we got here.
A History of Ohio Cannabis and License Wins From Canna Advisors
On June 8, 2016, Governor Kasich signed House Bill 523 legalizing the use of medical cannabis in Ohio. This set in motion a long process of both medical marijuana program success as well planted the seeds for adult-use opportunities in the future.
Canna Advisors Sees Initial Client Wins
Canna Advisors was already working with several Ohio clients planning to enter the industry in 2016. The first round of licensing in Ohio was highly competitive and required a significant amount of submission material. The material was scored, and the highest scoring applicants received licenses. Our clients ultimately secured a significant footprint of licenses during this round spanning all facets of the industry.
Ohio Expands Its Cannabis Program
We again assisted clients during the 2021 expansion of the medical program which was conducted as a “qualified lottery”. The 2021 round required the submission of material on a pass/fail basis to show the applicant was qualified but the license winners were ultimately chosen randomly. Again, we had winning clients, albeit a little luck played a role in that round.
Market Analysis & Future Industry Projections for Ohio’s Adult-Use Cannabis Industry
The total Ohio adult-use cannabis market is projected to exceed $2 Billion by 2028. This will create enormous opportunities to grow within the newly expanded industry, but the challenges will also be enormous.
Challenges Facing Ohio’s Current Medical Program
Ohio suffers from a surplus of product and a declining marijuana patient base. Currently Ohio has about 370,000 registered medical cannabis patients but not all of them are active. This is partly due to the registry cost/process and partly due to the ease of access just over the border to the north. On a positive note, states with a healthy number of existing medical licensees tend to have a smoother transition into an adult-use market because a portion of the infrastructure already exists, as we’ve witnessed in states like Maryland.
How Many Cannabis Retailers Will Ohio Need to Meet Demand?
Based on the average adoption rate within other adult-use markets and Ohio’s population of 11,700,000, Ohio will conservatively support 500 to 600 cannabis retailers. Ohio currently has 133 medical dispensaries which can serve as a starting point for adult-use but the state will need to add hundreds of new retail licenses to meet the projected market demand. The supply chain and ancillary support businesses will also need to grow accordingly.
How Many Cannabis Jobs Could This Create For Ohio?
Currently the Ohio medical cannabis industry supports about 6,500 jobs across the state. The expected expansion of the market could easily create over 20,000 new jobs as the supply chain and retail distribution markets grow to meet the demand.
Start A Cannabis Business in Ohio With Our Proven Consultants
To get into the Ohio cannabis market you will need to secure a license, develop a successful business plan, and raise capital. Those considering pursuing a new cannabis business should be ready to get started as soon as the celebration confetti hits the ground on election night.
If Ohio legalizes recreational cannabis this year, it will surely come with a competitive rush to get started and our team of seasoned cannabis consultants have a successful track record of license wins from the very start of Ohio’s medical program.
Contact Canna Advisors to get started on your Ohio business plan and financial model today and above all, go vote!