Author: Jeff Smith
Delaware’s heavily regulated $30 million medical marijuana market is poised to double the number of vertically integrated operators from three to six at a time when prospects for adult-use legalization also are brightening at the state capitol.
The state, which launched its MMJ market in 2014, has long had only three operators and six dispensaries to serve a patient base that now exceeds 12,000 people. Some patients have complained of a lack of product selection and steep prices.
But sales more than doubled from $11.8 million in 2018 to $27.7 million in 2020, according to state figures.
To meet increasing demand, state regulators earlier this year awarded additional vertical licenses to three operators covering four dispensary locations.
Notably, the three new licensees all fall under the category of minority- or veteran-owned business enterprises.
“With new companies and new product lines coming out, we expect sales to jump considerably,” Paul Hyland, Delaware’s medical marijuana director, told MJBizDaily.
The state is projecting sales of $37.3 million for 2021, a 35% increase from last year.