California's Adult-Use Marijuana Sales Drop to Nine-Quarter Low

Dec.15.2022
California's Adult-Use Marijuana Sales Drop to Nine-Quarter Low
California's adult-use marijuana retail market sees first decline since commercial sales began in 2018.

For the first time since California launched commercial sales in 2018, the adult-use marijuana retail market has experienced a dip.


According to data released on November 18 by the California Department of Tax and Fee Administration, pharmacies with national licenses reported taxable sales of $1.27 billion in Q3 2022 for adult use, marking a nine-quarter low since Q2 2020 (CDTFA).


Editor's note: "Taxable sales amount" includes revenue from marijuana sales, sales of marijuana products, and other tangible personal property retail reported on sales and use tax returns.


As of the third quarter of this year, California retailers reported taxable adult use sales just over $4 billion, a decline of 7.5% compared to the first three quarters of 2021. However, the taxable sales figures provided by CDTFA are unstable and subject to changes based on amended and delayed declaration forms, as well as adjustments made to other tax declaration forms.


For example, when officials from the California Department of Tax and Fee Administration (CDTFA) initially reported the complete data for 2021, the taxable sales amounted to $5.2 billion. Since then, CDTFA officials have adjusted the 2021 data to reflect taxable sales of nearly $5.8 billion - over $568,000 in sales that had not been previously reported.


In the third quarter of 2022, adult use sales generated approximately $242 million in tax revenue, including $128.4 million in excise tax and $113.6 million in sales tax. California's total tax revenue has now declined for five consecutive quarters, but the most recent quarter marked the first time that the state's cultivation tax fell to $0, following legislation that terminated the previous tax rate of $161 per pound levied on licensed cultivators.


According to data from the California Department of Tax and Fee Administration (CDTFA), the reported total marijuana tax revenue does not include uncollected returns and does not include local taxes collected by cities and counties.


As of the third quarter, sales of adult use brought in nearly $853 million in revenue for the state government in 2022, a decrease of 17.2% compared to the first three quarters of last year.


Based on current data, adult-use cannabis retailers in California have sold nearly $19.3 billion worth of cannabis and related products since commercial sales began in 2018. So far, the state has collected a total of $4.4 billion in adult-use cannabis taxes, which includes $2.2 billion in cannabis excise taxes, $1.7 billion in sales taxes, and $500 million in cultivation taxes that will be repealed on July 1, 2022, according to data from the California Department of Tax and Fee Administration (CDTFA).



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

China Tobacco International HK Warns First-Half Revenue May Fall 25%-30%, Tobacco Leaf and Duty-Free Exposure Highlight Reliance on Traditional Tobacco
China Tobacco International HK Warns First-Half Revenue May Fall 25%-30%, Tobacco Leaf and Duty-Free Exposure Highlight Reliance on Traditional Tobacco
CTIHK expects first-half 2026 revenue to fall 25%-30%, mainly due to lower tobacco leaf imports and delayed cigarette shipments to China’s domestic duty-free market. Its 2025 revenue mix—nearly 90% from tobacco leaf-related businesses and less than 1% from new tobacco products—shows continued exposure to traditional supply chains and trade variables.
Jun.18
FDA Grants MRTP Orders for 20 ZYN Nicotine Pouches
FDA Grants MRTP Orders for 20 ZYN Nicotine Pouches
The U.S. Food and Drug Administration (FDA) has issued modified risk granted orders to Swedish Match USA for 20 ZYN nicotine pouch products, allowing the already-authorized products to be marketed with a specific claim that using ZYN instead of cigarettes lowers the risk of mouth cancer, heart disease, lung cancer, stroke, emphysema and chronic bronchitis.
Jul.01
Tasmania Reports Annual Enforcement Results: 5.5 Million Illegal Cigarettes and Nearly 30,000 Vapes Seized, With IGET Products Visible in Official Images
Tasmania Reports Annual Enforcement Results: 5.5 Million Illegal Cigarettes and Nearly 30,000 Vapes Seized, With IGET Products Visible in Official Images
Tasmania reported its 2025/26 illicit tobacco enforcement results on July 14, with authorities seizing about 5.5 million illegal cigarettes, more than 2,500 kilograms of loose tobacco and nearly 30,000 vapes.
Jul.15
Global Tobacco Control Faces Regional Adaptation Test as Nicotine Markets Evolve, Asian Specialist Says
Global Tobacco Control Faces Regional Adaptation Test as Nicotine Markets Evolve, Asian Specialist Says
As e-cigarettes, heated tobacco products and nicotine pouches expand across global markets, a central question is gaining urgency: can tobacco control rely on a universal policy model? In an interview with 2Firsts, Asian public health and addiction medicine specialist Dr. Rashidi Mohamed bin Pakri Mohamed says Western experience remains relevant, but policies must be adapted to local culture, healthcare systems, enforcement capacity, illicit markets and clinical evidence.
Jul.08
Reemtsma says German illegal e-cigarette seizures reached 70% of 2025 total, pouches 179%
Reemtsma says German illegal e-cigarette seizures reached 70% of 2025 total, pouches 179%
Reemtsma said its first-half 2026 black-market tracker for tobacco and nicotine products showed a continued rise in officially reported seizures in Germany, with illegal e-cigarette seizures reaching 70% of the full-year 2025 level and snus and nicotine pouch seizures reaching 179% of last year’s total.
Jul.08
Korean component maker ITM Semiconductor says Indonesia unit starts e-cigarette device output as related Q1 revenue rises 55.4%
Korean component maker ITM Semiconductor says Indonesia unit starts e-cigarette device output as related Q1 revenue rises 55.4%
South Korea’s KOSDAQ-listed electronics-component maker ITM Semiconductor said its Indonesia subsidiary has begun full-scale mass production of e-cigarette devices, with first-quarter revenue from the business rising 55.4% year on year to 42.1 billion won, Maeil Business Newspaper reported.
Jul.08