Overview of Cannabis in Illinois To-Date

Overview of Cannabis in Illinois To-Date

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MARCH 11TH, 2020

The state of Illinois legalized both adult-use and medical cannabis. Persons 21 years and older may purchase and possess cannabis, while registered patients have access to medical cannabis. Access to cannabis is through state licensed businesses that are allowed to grow, manufacture and sell cannabis. According to Marijuana Business Daily’s 2019 Marijuana Business Factbook, Illinois’ estimated sales for 2019 is $220 – 270 million and over $2 billion when the market matures.

Medical Cannabis in Illinois

Illinois legalized medical cannabis in 2013, through a legislative bill, House Bill 1 (the Compassionate Use of Medical Cannabis Pilot Program Act) which provided a legal way for qualifying patients in the state to access and utilize medical cannabis as a form of treatment for their ailment. The Act became effective on January 1, 2014 for a period of four years. Regulated by the Department of Public Health (IDPH), applications for Illinois medical cannabis businesses were accepted in September 2014, IDPH awarded 22 cultivation licenses and over 60 dispensary licenses throughout the state.

The medical cannabis program was slow to start due to conservative regulations on patient qualifications with only a little over 2600 patients in Year 1. Many medical cannabis businesses struggled to stay open due to lack of demand from low patient counts. The state continued to see a slow but steady increase in patient growth with over 7,000 patients in Year 2; 21,000 patients in Year 3; 39,000 patients in Year 4 and 87,000 patients in Year 5. Patient growth jumped significantly in Year 5 when the state expanded the medical cannabis program by establishing the Opioid Alternative Pilot Program, allowing for Illinois residents age 21 or older who have been prescribed an opioid to register as a qualifying patient or medical cannabis use.

Adult-Use Cannabis in Illinois

In June 2019, Illinois became the 11th state to legalize recreational (adult-use) marijuana―and the first to do so via a legislature rather than ballot initiative. This provided a legal system and access to cannabis for persons 21 years and older in the state through state licensed cannabis businesses. To ensure a steady supply of cannabis, the state will have the following types of businesses:

  • Illinois Adult-Use Cannabis Cultivation – can grow cannabis plants, process cannabis products and sell wholesale to other licensed Illinois Cannabis Businesses. There is a limit of 30 business licenses allowed for Illinois Adult-Use Cannabis Cultivation within the state.
  • Illinois Adult-Use Cannabis Craft Growers – can grow cannabis plants, process cannabis products and sell wholesale to other licensed Illinois Cannabis Businesses. The amount of businesses licenses allowed for Illinois Adult-Use Craft Growers shall not exceed 150.
  • Illinois Adult-Use Cannabis Infuser – can incorporate cannabis concentrate into cannabis-infused products. There are no state-wide limits on number of infuser licenses available. However, the state shall issue only 40 licenses in 2020 and 60 licenses in 2021.
  • Illinois Adult-Use Cannabis Retail – can purchase cannabis from licensed cultivation, craft growers and infuser facilities and sell cannabis to persons 21 years and older. The amount of business licenses allowed for Illinois Adult-Use Retailers shall not exceed 500.

According to Marijuana Business Daily, almost immediately, the demand overcame expectations with $11 million worth of cannabis sales in the first five days. Customers spent more than $39.2 million in the first month of sales (Jan 2020), making it the strongest showing in marijuana history.

Upcoming Opportunity to Enter the Illinois Cannabis Market

In addition to the existing cannabis business licensees, by December 21, 2021, the state will award up to 60 additional Craft Grower Licenses, up to 60 additional Infuser Licenses, and up to 110 additional Adult Use Dispensing Organization Licenses.

If you are interested in applying for an Illinois Cannabis Business License and need more information or help, contact us by emailing info@cannabossadvisors.com or calling 480-787-5433

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