Montana Adult-Use Cannabis Sales Set Record, Approach 75% of Market

Licensed cannabis retailers logged a record $26.8 million in total sales this August, representing continued growth for one of the nation’s newest adult-use markets, according to the state’s Department of Revenue.

That monthly total was a 1% increase over July, despite July having five Fridays and five Saturdays—the two biggest sales days of the week for cannabis retail—to help boost numbers.

Overall, Montana recorded $7 million in medical cannabis and $19.8 million in adult-use cannabis last month, with the latter representing 74% of the total market and growing. When Montana first launched its expanded retail market in January 2022, adult-use sales accounted for 58% of the monthly sales total.

So far in 2022, Montana dispensary operators have sold more than $201 million of cannabis ($133 million coming from adult-use sales) in a state that only houses roughly 1.1 million residents. Those sales have provided the state with nearly $29.3 million in tax revenue.

And that revenue stream comes despite only half of Montana’s 56 counties participating in the state’s adult-use cannabis retail program in August.

Yellowstone County, the most populous in the state with roughly 160,000 residents, accounted for an estimated $3.2 million in adult-use sales and $1.3 million in medical sales in August—more than any other county in Montana—representing roughly 16.6% of the state’s combined retail market for the month.

Gallatin County recorded roughly $3.2 million in adult-use sales and $915,000 in in medical sales, while Missoula County (roughly $2.7 million in adult-use and $1 million in medical), and Flathead County (roughly $2.3 million in adult-use and $700,000 in medical) also represented major market shares.

In September 2022, the following counties began incorporating a 3% local tax option for both adult-use and medical sales: Blaine, Carbon, Deer Lodge, Lake and Rosebud.

And the following counties will begin incorporating that local tax option in October: Big Horn, Lewis and Clark, Powell, Ravalli (adult-use only) and Silver Bow.