YOUR BUSINESS AUTHORITY
Springfield, MO
YOUR BUSINESS AUTHORITY
Springfield, MO
Report forecasts $1.4B for Missouri
A cannabis market research firm is projecting year-over-year double-digit percentage growth nationally for the marijuana industry.
According to a news release from Louisville, Colorado-based BDSA, the legal U.S. cannabis market is expected to reach $29.6 billion by the end of the year, an increase of 12% from last year’s total of just over $26 billion. The report notes marijuana sales in the U.S. will make up roughly 80% of worldwide sales, which are projected to hit $36.7 billion this year.
BDSA reported the compound annual growth rate will average 13% from 2022 to 2027, which equates to total legal sales of $45 billion in the U.S. by the end of the five-year period.
“The biggest drivers of cannabis industry growth in the U.S. will be the thriving Midwest and East Coast markets,” said Roy Bingham, co-founder and CEO of BDSA, in the release. “New markets, especially adult-use markets like Missouri, New Jersey and New York, will lead growth. Although mature western markets such as Colorado and California have experienced sales stagnation or decline due to price compression, they will continue to account for a substantial portion of legal sales through 2027.”
It’s understandable why Bingham called out Missouri in his comments as the state’s sales totals for marijuana products have been impressive – particularly this year. Incorporating recreational and medical cannabis sales through June – the latest data available from the Missouri Department of Health and Senior Services – the state has sold an average of roughly $4 million worth of marijuana per day since February, according to the Missouri Cannabis Trade Association. The adult-use market in Missouri opened for business in early February.
In Springfield, voters approved an additional 3% local sales tax for adult-use cannabis in a special election on Aug. 8. City officials estimate the tax could generate up to $1.8 million per year for public safety, addiction prevention and treatment services, mental health services and housing. The tax for recreational marijuana already was taxed by the state at 6%, and the city sales tax rate of 2.125% also is assessed on all retail goods. The tax passage now puts Springfield in the company with other Missouri cities, including Columbia, Joplin, Kansas City and St. Louis.
While some marijuana consumers might grumble about the rising tax rate on recreational marijuana, Missouri still has it better than many other states where the drug is legal. For example, California and Colorado both charge a 15% tax and Montana’s rate is 20%. As for what state has the largest marijuana tax? It’s Washington at a whopping 37%.
While visiting Las Vegas to mark my birthday last month, my hotel room overlooked T-Mobile Arena, which is the home of the NHL’s newest Stanley Cup champions, the Vegas Golden Knights. It got me thinking about how Vegas, which had no professional sporting teams a decade ago, now has three major league franchises. A fourth team, the Oakland Athletics, are expected to leave California for Sin City by 2027. It’s big business out in the desert, according to a study by the Center for Business and Economic Research at the University of Nevada-Las Vegas. It notes that sporting events in Las Vegas generated over $1.8 billion in direct output from out-of-town visitors in fiscal 2022. Looking ahead, Formula I has a road race set for November, and the city will host the Super Bowl in February. For a city that frequently is willing to change its image, becoming a sports town may be the most impressive transformation I’ve witnessed yet.
When compiling our publication’s Open for Business section, I frequently must leave out some interesting tidbits due to space. Here are a couple recent items:
The Ozarker Lodge
Jeremy Wells, one of the owners of the recently opened The Ozarker Lodge, said the $10 million boutique hotel project was a significant learning experience. The renovation and expansion work for the 102-room, 36,000-square-foot venture was new for both Wells and Dustin Myers, partners in Springfield hospitality branding firm Longitude LLC and investment group Flyover Developments LLC. Wells said it gave them a new appreciation and understanding for what their Longitude clients deal and work with, noting many of them come from the hotel industry. I got to observe the duo at work firsthand a few years ago as part of Made to Order: The Journey of a Restaurant Rebrand, a Springfield Business Journal editorial series. They were focused, creative and hardworking – all traits that will undoubtedly serve them well in this new undertaking.
Village Meeple Board Game Cafe
Taking a humorous spin on the 1970s-founded musical group Village People, Village Meeple Board Game Cafe seeks to be a fun addition to Springfield’s retail market. It’s the only board game cafe in the Queen City, said owner Jess Hamlet, noting the next nearest is in Branson. Beyond those locations, you’ll have to travel to Columbia to find another one, she said. Hamlet said her family loves board games and sees them as a way to unite a community, which led to her launching the concept. Sixteen tables are scattered throughout the cafe on which to play almost any kind of board game you can imagine with QR codes on most of the games, which link to “how-to” videos. A 13-year employee with CoxHealth, Hamlet is tackling this new venture in addition to her part-time work as an athletic trainer in occupational medicine.
Contact Mike Cullinan
Phone: 417-616-5851
Email: mcullinan@sbj.net
Moseley’s Discount Office Products was purchased; Side Chick opened in Branson; and the Springfield franchise store of NoBaked Cookie Dough changed ownership.
