In 2015, Oregon Governor Kate Brown signed an emergency bill declaring cannabis sales legal to recreational users from dispensaries starting October 1, 2015, during an “early sales” period, through the end of 2016. Additional legislation signed into law by Governor Brown in March 2016 allowed the sale of medical and recreational cannabis from the same outlets. Effective January 1, 2017, cannabis can be sold for recreational use only by businesses that have obtained a “recreational license” from the OLCC, such businesses can also sell for medical use.
Through January 2019, there were 4,368 submitted applications and 2,101 licensed recreational cannabis businesses in Oregon, including 1,114 producer licenses.
In Oregon where concentrates and edibles were only allowed for the first time in the adult-use channel in July 2016, the transformation in category happened almost overnight. Concentrates quickly picked up 29% of the market, while pre-rolled products took 6% and edibles 10%.
Oregon had an established medical cannabis industry before the legalization of recreational cannabis, and early adult-use sales through existing dispensaries took place before the first rec-only retailers were licensed, which explains the relatively quick turnaround time.
Retail sales grew from $523 million in 2017 to $643 million in 2018. While flower sales remain dominant in Oregon, flower contributed about 54% of sales year-to-date, as growth in other categories including concentrates, edible and topical forms all outpaced flower.
It is projected Oregon could be achieving $1 billion in recreational and medical cannabis sales to 2025 and reach the 5 percentage of the whole legal cannabis market.
The permanent, 17-percent tax on the sales price of all recreational cannabis products will take effect once a facility is licensed. Cities and counties can decide whether or not to adopt an additional local tax of up to 3 percent on retail sales.
We offer “70% ready to go” Cannabis Financial Models and Cannabis Business Plan Templates for a growing, processing, retail and vertically integrated cannabis business in Oregon.
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