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 Regulator Deputy Head Visits Laos as Both Sides Strengthen Cooperation on Illegal Tobacco Trade
China Tobacco Regulator Deputy Head Visits Laos as Both Sides Strengthen Cooperation on Illegal Tobacco Trade
China’s official Xinhua News Agency reported that Liu Sanjiang, deputy head and Party group member of China’s tobacco regulator, led a delegation to Laos from July 31 to Aug. 2, 2026, for discussions with Lao authorities on combating cross-border illegal tobacco trade. The two sides discussed areas including law enforcement cooperation, information sharing and efforts to address tobacco-related illegal activities such as counterfeiting and smuggling. The visit highlights cooperation between Chinese and Lao authorities on illicit tobacco control.
News
Aug.05
Philip Morris Romania Executive on Smoke-Free Strategy: How IQOS Spaces Are Moving Beyond Retail to Consumer Connection
Philip Morris Romania Executive on Smoke-Free Strategy: How IQOS Spaces Are Moving Beyond Retail to Consumer Connection
In an interview with Romanian marketing publication IQads, Marek Gębski, Director of Smoke-Free Products at Philip Morris Romania, said IQOS experience spaces are evolving from traditional retail locations into platforms for consumer engagement and brand connection. Through locations such as IQOS Boutique Victoriei, PMI aims to use design, culture and consumer experiences to strengthen communication with adult consumers about smoke-free products. The interview highlights how tobacco companies are expanding smoke-free strategies beyond products toward experiential marketing and consumer relationships.
Aug.11
China Tobacco Zhejiang files patent for pressure-triggered, on-demand oral nicotine release
China Tobacco Zhejiang files patent for pressure-triggered, on-demand oral nicotine release
China Tobacco Zhejiang Industrial Co., Ltd. has filed a patent application for an oral nicotine delivery product designed to let users actively adjust nicotine release. The product embeds two types of nicotine reservoirs with different wall thicknesses and positions inside a deformable matrix. Pressure applied with the tongue or lips can rupture the reservoirs and accelerate nicotine release. In simulated oral tests, several patent examples showed sharply higher peak nicotine release rates as applied force increased from 0 N to 1 N and 3 N. The filing explores a shift from preset release profiles toward user-triggered nicotine delivery.
Sep.01
UK HMRC Issues One-Month Countdown Warning, Urges Vape Businesses to Prepare for New Tax Rules
UK HMRC Issues One-Month Countdown Warning, Urges Vape Businesses to Prepare for New Tax Rules
The UK’s Vaping Products Duty and Vaping Duty Stamps Scheme will take effect on October 1, 2026. All vaping liquids manufactured in or imported into the UK will face a flat excise duty of £2.20 per 10ml, whether or not they contain nicotine. Newly manufactured or imported products released onto the UK market from October 1 will require a valid duty stamp, while eligible existing unstamped inventory can continue to be sold through March 31, 2027. From April 1, 2027, all vaping products outside duty suspension must carry a valid stamp.
Sep.03
IQOS Global Flagship Space to Open in Tokyo Ginza as PMI Expands Consumer Experience Strategy
IQOS Global Flagship Space to Open in Tokyo Ginza as PMI Expands Consumer Experience Strategy
Philip Morris Japan (PMJ) announced that it will open “IQOS Flagship Ginza” in Tokyo on September 4, 2026. The location will become the first global flagship space for PMI’s IQOS brand. PMJ said the venue will target adult smokers aged 20 and above and combine product experiences, community engagement and local cultural elements. The design will incorporate Japanese natural aesthetics and traditional craftsmanship. The launch reflects PMI’s broader strategy of strengthening consumer engagement through experiential retail and brand spaces. The existing IQOS Store Ginza is scheduled to close on August 30, 2026.
Jul.21
FDA Grants PMTA Authorization to 11 ZYN ULTRA Nicotine Pouches, Bringing Total Authorized Pouches to 43
FDA Grants PMTA Authorization to 11 ZYN ULTRA Nicotine Pouches, Bringing Total Authorized Pouches to 43
The U.S. Food and Drug Administration authorized 11 ZYN ULTRA nicotine pouch products made by Swedish Match USA through the premarket tobacco product application pathway on August 21, 2026. Ten of the authorized products have a labeled nicotine content of 9 mg, while ZYN ULTRA Smooth was authorized at 11 mg. The reviews were conducted through FDA’s nicotine pouch PMTA pilot program. FDA has now authorized 43 nicotine pouch products, including 23 through the pilot.
Aug.24