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.

VEEV Arrives in South Korea, Completing PMI’s IQOS-ZYN-VEEV Portfolio
VEEV Arrives in South Korea, Completing PMI’s IQOS-ZYN-VEEV Portfolio
Philip Morris Korea has officially launched its VEEV e-vapor brand in South Korea, introducing both the VEEV inPRIME device and VEEBI inPRIME pods. The launch further expands PMI’s smoke-free portfolio in Korea, alongside its IQOS heated tobacco products and ZYN nicotine pouches.
Jun.16
Special Report | China’s Tobacco Tax Debate Shifts Toward Tax Design as Policy Trade-offs Come Into Focus
Special Report | China’s Tobacco Tax Debate Shifts Toward Tax Design as Policy Trade-offs Come Into Focus
China’s tobacco tax debate is moving from whether to raise prices to how the tax system should be designed. At a Beijing forum on World No Tobacco Day, experts discussed higher specific excise taxes, minimum tax burdens and dynamic adjustments linked to income and inflation. The issue also connects to China’s broader consumption tax reform, health financing and chronic disease costs. Public reports did not mention e-cigarettes, heated tobacco, nicotine pouches or other new nicotine products.
Jun.11
Why Many E-Liquids Today Are "Not Bad, but Not Memorable" – Mylor’s Approach to Experience Design
Why Many E-Liquids Today Are "Not Bad, but Not Memorable" – Mylor’s Approach to Experience Design
From May 8 to 10, 2026, Mylor (Booth E70) will exhibit at The Vaper Expo UK, where it will showcase its systematic experience design solutions for e-liquids. At present, the e-liquid market commonly faces a challenge: many products have “no obvious shortcomings, but lack memorable features.” In response, Mylor has proposed refined solutions across multiple dimensions, including device-adaptive sweetness, progressive cooling sensation, fruit-oriented sourness, and segmented nicotine experience.
May.08
Opinion | As EU Reviews Tobacco Rules, Experts Warn Against Overlooking Smokers’ Alternatives
Opinion | As EU Reviews Tobacco Rules, Experts Warn Against Overlooking Smokers’ Alternatives
As the European Commission reviews its tobacco and advertising rules, two experts who provided written comments to 2Firsts argue that future EU policy should not overlook adult smokers’ alternatives. Dr Garrett McGovern and Dr Carmen Escrig say regulators should weigh relative risk, adult switching, flavours, consumer behaviour and scientific uncertainty alongside youth protection.
Industry Insight
Jun.01
Ukrainian Media: Polish Vape Distributor Evapify Allegedly Linked to Russian Businessman Named in U.S. “Russia Oligarch Report”
Ukrainian Media: Polish Vape Distributor Evapify Allegedly Linked to Russian Businessman Named in U.S. “Russia Oligarch Report”
According to an investigative report by Euromaidan Press, a Ukrainian English-language independent media outlet, Russian businessman Oleg Boyko has been sanctioned by Ukraine, Poland, Australia and Canada, but has not been added to the European Union’s sanctions list. The report alleges that Evapify, a Polish vape distributor with financial and personal ties to Boyko, holds a significant position in Poland’s disposable vape market.
News
Jun.01
2Firsts Data|China Vape Exports Sink to Three-Year April Low After Tax Rebate Ends, Falling to $694 Million
2Firsts Data|China Vape Exports Sink to Three-Year April Low After Tax Rebate Ends, Falling to $694 Million
China’s e-cigarette export value declined to $694 million in April 2026, marking the lowest April level in the past three years. The data is notable because April was the first full month after China removed export VAT rebates for certain e-cigarette products. Compared with April 2025, export value fell 20.9%; compared with April 2024, it was down 22.3%. Month-on-month, exports dropped 23.2% from March 2026.
Special Report
May.23