Ohio's Cannabis Market Projected to Exceed $1 Billion in Sales By 2027

BDSA, which provides market intelligence for the cannabis industry, today announced that Ohio's medical market is on track to reach $520 million in sales by the end of this year. 

The announcement comes a day after voters in Ohio resoundingly approved Issue 2, a measure to legalize adult-use cannabis, making the state the 24th in the nation to usher in cannabis reform. 

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The statutory measure, which lawmakers can revise, calls for allowing adults 21 years and older to purchase and possess up to 2.5 ounces of flower (or 15 grams of extract) and to home cultivate up to six plants per person or a maximum of 12 plants per household. In addition, the measure includes provisions for establishing a commercialized cultivation and retail marketplace.

While the proposed cannabis measure includes a timeline with an adult-use market launching as soon as September 2024, BDSA projects it will launch in 2025, and that sales in that segment alone will be $300 million, according to a press release. In 2025, BDSA estimates sales will grow to $820 million combined, and surge to $1.65 billion in 2027, which would make Ohio the fastest-growing legal cannabis market in the U.S.

In 2022, medical sales in Ohio grew by 26%, according to BDSA. 

“In recent years, the Midwest has become a thriving hub for the cannabis industry, and Ohio is rapidly emerging as a promising market,” said Roy Bingham, co-founder and chief executive officer of BDSA, in the press release. “Ohio’s unique regulatory environment and the increasing acceptance of medical cannabis underline the significance of this market, and BDSA is committed to providing the insights needed to navigate its evolving landscape.”

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The Ohio cannabis market stands out from others due to its prohibition on combusting cannabis flower. As a result, pre-rolls are not offered in the medical market, while cannabis flower comprises a larger share of the market compared to other medical cannabis markets, according to the press release. In Q2 2023, flower and vape products dominated the Ohio market, capturing a 51% and 23% dollar market share, respectively, according to BDSA. Extracts held a smaller dollar market share, accounting for 4% of sales, in contrast to medical-only states where extracts typically represent 8% of the market share.