Illinois’ hashish business hit $2 billion in complete gross sales in 2024, producing $490 million in tax income, marking one other yr of development since leisure hashish was legalized in 2020.

Grownup-use dispensaries accounted for $1.72 billion, a 2.5% improve from 2023, whereas medical hashish gross sales continued their three-year decline to $285 million.

Greater than 56 million hashish merchandise had been offered, a 13% rise from the earlier yr. Illinois collected $473.8 million in adult-use gross sales taxes and $16.3 million in medical hashish taxes, making hashish a big income supply for the state. Regardless of these beneficial properties, companies and lawmakers proceed to lift issues in regards to the flourishing intoxicating hemp market.

Governor JB Pritzker has referred to as for laws to manage the sale of intoxicating hemp merchandise, which stay unregulated and freed from the excessive tax charges the state locations on hashish gross sales.

Business leaders warn that Illinois’ tax charges of as much as 40% are pushing customers to buy from neighboring states like Michigan and Missouri, the place hashish taxes are significantly decrease.

Fairness stays a contentious situation. Social fairness candidates, who acquired 65% of latest licenses in 2023, accounted for under 11.9% of complete gross sales, although that determine rose to 38% by December 2024. Critics argue that restrictions on medical hashish gross sales and the dominance of multi-state operators (MSOs) proceed to drawback small and minority-owned companies.

Illinois now has 244 dispensaries, with over 100 candidates awaiting approval. Market analysts undertaking 2-6% annual development, however regulatory uncertainties, tax burdens, and competitors from the unregulated hemp market stay key hurdles for the state’s $2 billion hashish business.