Huge Purchasing Power of recreational marijuana in Illinois

Customers spent more than $39.2 million (nearly $40 million ) on recreational marijuana during the first month of legal marijuana sales in Illinois, and about a quarter of that came from out-of-state residents. 

Sales to Illinois residents totaled more than $30.6 million, according to numbers from the state’s Department of Financial and Professional Regulation. Out-of-state residents spent more than $8.6 million. Tax revenues have not been released.

On Jan. 1, Illinois became the second state in the Midwest to launch recreational marijuana sales, after Michigan. None of the states that border Illinois sell it, said Bethany Gomez, managing director of cannabis research firm Brightfield Group.

“Illinois has a really strong advantage, being in the middle of prohibition territory,” she said.

Dispensaries around the state are dealing with product shortages that keep many customers from buying what they want the most: flower, the popular dried marijuana buds that can be smoked. 

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The shortage, which is expected to last months, shut down recreational sales at some dispensaries in early January. Buying limits remain in place at many shops, and others have limited recreational sales to two or three days a week.

The fact that demand has remained strong despite the shortages indicates potential for a strong market in Illinois, Gomez said.

“There’s a lot more consumer demand that’s not being met just because of those supply shortages,” she said. “Once supply and demand issues can start to be worked out, we can see much greater growth.”

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Operators say since recreational sales began, they’ve started to figure out the cadence of serving hundreds of people a day, many of whom are for the first time learning about the dozens of products for sale.

At Mission South Shore marijuana dispensary in the South Chicago neighborhood, lines form most mornings. But instead of waiting hours to buy weed, people are in and out in less than 30 minutes.

“It really feels like it has normalized quite a bit,” said Kris Krane, president and co-founder of 4Front Ventures, which owns the dispensary. “I would expect that at this point, this is just kind of the new normal.”

A little less than half of Mission dispensary’s customers are from Indiana, Krane said. That was expected, since the dispensary is about 15 minutes from the state border.

Marijuana is still federally illegal, and transporting it across state lines is prohibited. According to Illinois law, customers with out-of-state driver’s licenses have a lower buying limit than in-state residents.

Dispensaries that are farther from the state line have seen their share of customers from out of state too.

More customers with luggage have been filing into Midway Dispensary, either going to nearby Midway Airport or coming from it, said principal officer Neal McQueeney. The Herbal Care Center, north of the Pilsen neighborhood, served customers from 11 states on Jan. 1, said general manager Michael Mandera.

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