Arkansas Medical Marijuana Industry Breaks Records in 2023 Despite Legal Challenges
The impressive rise and resilience of Arkansas medical marijuana market in 2023
Arkansas, one of the few states in the South that allows medical marijuana, saw a record-breaking year in 2023 for its cannabis industry. According to the data released by the Arkansas Department of Finance and Administration (DFA), Arkansas medical marijuana reached $283 million in 2023, a 2.5% increase over the $276 million in sales reported in 2022. This marks the highest annual sales figure since Arkansas' medical marijuana program launched in May 2019.
Scott Hardin, spokesperson for the DFA, said in a statement: “From $31 million in sales in 2019 to $283 million in 2023, the industry has grown each year,” adding, “The $25.6 million spent in December was the largest monthly amount in 2023.”
The DFA also reported that 62,227 pounds of medical marijuana were purchased in the state in 2023, indicating a high demand for the product among the state’s patients.
There are currently 38 Arkansas medical marijuana dispensaries, eight cultivators and nine processors, all of whom are licensed and regulated by the Arkansas Alcohol and Beverage Control agency.
The DFA collects a 6.5% sales tax and a 4% excise tax on Arkansas medical marijuana purchases, which generated $31 million in revenue for the state in 2023.
Meanwhile, there are 97,000 active Arkansas medical marijuana patients, the DFA noted, citing the state's health department. The number of registered patients has increased steadily since the program began, as more people seek relief from various qualifying medical conditions, such as cancer, chronic pain, PTSD, epilepsy, and others.
To obtain an Arkansas medical marijuana card, patients must have a physician’s certification and pay a $50 application fee. Patients and caregivers are allowed to possess up to 2.5 ounces of Arkansas medical marijuana at a time, and they can only use nonsmokable forms of the product, such as oils, pills, or edibles.
Arkansas' medical marijuana program, which established through the passing of the Arkansas Medical Marijuana Amendment of 2016, has faced several legal challenges and obstacles since its inception. The amendment, which was approved by 53% of the voters in November 2016, was delayed by lawsuits, regulatory hurdles, and legislative interference until the first Arkansas medical marijuana dispensary opened in May 2019.
The program also faced opposition from the federal government, which still considers marijuana illegal, and from some local authorities, who tried to ban or restrict Arkansas medical marijuana dispensaries in their jurisdictions.
In November 2022, Arkansans voted against legalizing recreational cannabis, rejecting a ballot measure that would have allowed adults 21 and older to grow, possess, and use marijuana for personal use.
Despite these challenges, the Arkansas medical marijuana industry has shown resilience and growth, surpassing the $1 billion mark for overall sales in late 2023.
The industry has also created jobs, tax revenue, and business opportunities for the state, as well as provided relief and access to thousands of patients who rely on Arkansas medical marijuana for their health and well-being.
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