FELTON, Del. - One year after Delaware launched legal recreational marijuana sales, state officials say the state's cannabis market has made significant progress, generating more than $53.4 million in adult-use sales while continuing to expand access for consumers and opportunities for businesses.
"We have more than doubled sales from the year before we went to adult use," Marijuana Commissioner Joshua Sanderlin told WBOC. "I think that actually is one of the strongest aspects of it so far."
Sanderlin said the industry's momentum has continued throughout the year.
"We're seeing month-over-month increases as well," he said. "July was actually our biggest month to date for sales. As we get more stores online, more retail facilities will create more access points for purchases, which will make a big difference in convenience for consumers."
Delaware cannabis industry continues to expand
According to the Office of the Marijuana Commissioner, Delaware's recreational marijuana market now includes 38 active licenses, across cultivation, manufacturing, retail and testing.
State officials say additional businesses are expected to open over the coming months as the market continues to grow.
Among those already serving customers is The Farm in Felton, a family-owned cannabis company that began as a medical marijuana dispensary before expanding into recreational sales.
"The last year has been great," said Jennifer Stark, CEO of The Farm. "Honestly, it's been a lifesaver for the entire cannabis industry."
Stark said recreational sales have helped bring in new customers who previously chose not to participate in Delaware's medical marijuana program.
"It's definitely been exciting to have people come in, and not everyone wanted to get a medical card," Stark said. "So we have a lot more recreational customers, and they really appreciate being able to come in to a local dispensary."
Store Manager Jim Van Patten said customers had been waiting years for legal recreational sales to begin.
"We're the only location here that has a drive-thru," Van Patten said. "Recreational customers have been waiting for years, and they're very happy that they can finally make purchases."
Challenges remain for cannabis businesses
While the first year has been successful, Sanderlin said launching a cannabis business remains difficult because marijuana remains illegal under federal law.
"Cannabis is a very tough industry," he said. "Starting any business is tough, especially in the current economic climate. But you add in one of the most controlled substances that are freely available to the public, it makes it very difficult to get the business started."
Because cannabis remains federally prohibited, business owners cannot access many traditional financing options.
"You can't go to your bank and get funding. You can't go to the SBA and take out a small business loan," Sanderlin said. "That makes it difficult for folks to get their seed capital to start their businesses."
Looking ahead to year two
State officials expect Delaware's recreational cannabis market to continue expanding as additional growers, manufacturers and retailers come online.
"The really big thing that we're looking forward to is more suppliers," Sanderlin said. "More folks getting their cultivations open, being able to provide more selection to consumers on the shelves and more manufacturers bringing diversity of product to the marketplace."
The Office of the Marijuana Commissioner says the first year of recreational sales also included continued investment in Delaware's Social Equity Fund, with nine grants approved and more than $1 million awarded to help entrepreneurs enter the legal cannabis industry.
As more licensed businesses open across Delaware, officials say the focus is shifting from launching the state's recreational marijuana market to continuing its long-term growth.
