Steep decline for medical cannabis registries after adult-use sales begin

(This is the first installment in a series – a collaboration with the Marijuana Policy Project – highlighting demographic shifts within medical cannabis registries nationwide.) The expansion of adult-use marijuana sales to 21 states has ushered in a new era of commercialism in the U.S.cannabis industry.

For some retailers, that means a concentration of certain well-performing products. ADVERTISEMENT For some medical marijuana patients, that means less access to full-spectrum cannabis stock-keeping units (SKUs).

Inventory rightsizing is a key element for retail success, particularly given the dramatic shifts in customer and product demand after a market’s conversion to recreational sales.“In most adult-use legalization states, the number of registered patients has dropped significantly since legalization passed,” Karen O’Keefe, director of state policies for the Washington, D.C.-based Marijuana Policy Project (MPP), told MJBizDaily.

“This is the case even though most states allow patients to buy cannabis without paying the excise tax.” According to MPP data, the total number of medical marijuana patients on average decreases by roughly a third after a market launches recreational sales, a shift that might impact business strategy, product availability, marketing and customer relationships.In some states, such as Arizona and Michigan, the decline has been far more dramatic.

These ongoing retail shifts, according to industry sources and MMJ patients, have prompted store operators and suppliers to propagate certain product categories and offerings over others as they adjust to find the right mix to meet demand.Operators in several states spoke with MJBizDaily about the changes they’ve implemented over the years to capture more adult-use consumers but still stay true to their original customers, MMJ patients.

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