Chart: Arizona growing into medical marijuana juggernaut
By Eli McVey
Rather quietly, it appears, Arizona has grown into one of the largest medical cannabis markets in the nation, behind only California and Michigan in terms of patient counts.
The states medical marijuana program added nearly 27,000 patients in 2016 a 30% increase that brought the total count to nearly 115,000. Arizonas patient base has now eclipsed Colorados, which has dwindled to approximately 100,000.
Growth throughout the year in Arizona was relatively steady, hovering between 1%-3% with an average monthly growth rate of 2.2%.
The inclusion of chronic pain on the list of qualifying MMJ conditions has contributed to the markets large size.
However, the biggest month for the program came in December, when over 4,000 patients enrolled in the program, more than the previous two months combined.The enrollment spike followed the narrow defeatof a November ballot initiative to legalize adult-use marijuana.
Many consumers who were hoping to take advantage of a new recreational market clearly opted to participate in the existing medical cannabisindustry.
While the defeat of Arizonas initiative was a blow to the cannabis industry as a whole, it was perhaps a boon to the states licensed dispensaries, which received at least a temporary reprieve from a more open and competitive adult-use market.
Arizona started 2016 with 94 licensed dispensaries, as well as five that were not operating. But in October, the Department of Healthawarded 31 additional dispensary licensesto increase the states total to 130.
Those licenses were highly coveted: With nearly 750 applicants submitting bids, it was possibly the largest ratio of applications to licenses in any U.S. market.
Its easy to see why entrepreneurs are so eager to break into the market, as business for Arizona dispensariesboomed in 2016. Arecord 29 tons of cannabis products were sold over the course of the year, a 53% increase over the 19 tons sold in 2015.
