New England Public Media | Massachusetts marijuana sales top $10B as regulators prepare for social consumption

Adult-use cannabis sales in Massachusetts rose past the $10 billion mark in September, a major financial milestone for an industry that formed only a decade ago when voters legalized marijuana via a ballot initiative in 2016. The first adult-use dispensaries in the state opened in 2018.

The sales milestone reflects a demand for recreational cannabis that has steadily grown in the last 10 years. Marijuana retailers had their biggest single month ever this past June — which saw $156 million in total sales. The industry now averages around a billion dollars in sales each year.

Data from the Massachusetts Cannabis Control Commission (CCC) shows all-time cannabis sales have pulled in around $2 billion in state and local taxes. Marijuana is subject to the state’s 6.25% sales tax, as well as a 10.75% excise tax. Cities and towns that host a cannabis business can also choose to impose a 3% local tax.

“I see this as a continued projection of where the industry is going,” said CCC Commissioner Xiomara Alban DeLobato. “We’ve seen steady growth overall and I anticipate that continuing to happen.”

DeLobato says the demand will help inform the Commission’s work as the state prepares to enter the next chapter in legal weed: social consumption sites, where customers will be able to purchase cannabis and consume it on location. The CCC laid out regulations for the so-called weed cafes at the start of this year.

“There’s innovation that’s still untapped, you know, in the industry as a whole,” DeLobato said. “So I only can see just a lot more positive growth from here.”

DeLobato anticipates the first social consumption licenses will roll out by the beginning of 2027, and will encompass pre-existing dispensaries that want to add social consumption to their stores. Two other licenses types still being drafted will allow for cannabis to be consumed at eligible events and festivals, and for non-marijuana businesses to partner with a cannabis retailer to offer social consumption.