Please ensure Javascript is enabled for purposes of website accessibility

Volume Sales of Arizona Medical Pot Rose 36% in 2019

By Eric Volkman - Jan 30, 2020 at 2:49PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Marijuana dispensaries in the state took in an estimated $580 million last year.

Although Arizona hasn't (yet) legalized recreational cannabis, sales of medical marijuana are growing robustly in the state. According to data from the Arizona Department of Health Services, dispensaries there sold 165,722 pounds of medical pot in 2019, a nearly 36% increase over 2018's tally.

Estimates are that total sales for 2019 came in at around $580 million.

Medical professional holding cannabis products.

Image source: Getty Images

The increase was due partially to a rise in the number of patients qualifying to purchase marijuana. The Department said that 18% more individuals were registered with the Arizona medical cannabis program in 2019, for a total of almost 220,000. 

According to the Department's numbers, the overwhelming majority of the patients -- almost 90% -- were taking medical cannabis for chronic pain. Among individual conditions, cancer came in a far distant second, at less than 2%. People with two or more conditions accounted for about 4.7% of the overall patient base.

Medical marijuana in Arizona was made legal in a statewide ballot measure in 2010. Currently, grassroots efforts are underway to get one permitting recreational use on the ballot for the 2020 election.

As is the case in other states that have legal marijuana markets, the Arizona cannabis sector is relatively small and scattered. One publicly traded marijuana company that has a presence in the state is Cresco Labs (CRLBF 1.09%), via the Reef dispensary brand it purchased in September from privately held Tryke. Currently, Cresco Labs operates two Reef stores, one in Phoenix and one in the nearby town of Queen Creek.

Cresco Labs shares were down slightly in late-afternoon trading Thursday.

 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Cresco Labs Inc. Stock Quote
Cresco Labs Inc.
CRLBF
$2.79 (1.09%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.