It has been over a year since Mississippi began accepting applications for medical cannabis licenses in July 2022. Since then, the state’s cannabis industry has steadily expanded, with the first legal sales commencing in January 2023.
Mississippi’s Unique Cannabis Market
Mississippi’s cannabis market stands out as the only one in the South with an open, non-competitive licensing structure. The recent removal of the residency requirement and the enactment of a new bill have made it an opportune time for those interested in entering the cannabis industry.
Growth in Medical Cannabis Patients
Starting with a mere 2,000 registered patients at the beginning of 2023, the number of medical cannabis patients has surged, driven by the opening of more licensed dispensaries. As of August 15, 2023, the Mississippi Department of Health reported 21,459 registered patients, indicating a growing demand and further opportunities for operators in this evolving market.
Cultivation and Processing Landscape
As of September 18, 2023, Mississippi has licensed 121 cultivation facilities, fostering competition with average prices for cannabis flower ranging from $10 to $15 per gram. However, manufactured products like edibles and concentrates command higher prices, with standard 100mg edibles averaging $30 to $40 and concentrates around $60 to $80 per gram. This disparity may be attributed to the limited number of licensed processing facilities—only 20 at present.
The expiration of the initial residency requirement for cultivators and processors in January 2023 has opened the doors for experienced out-of-state operators. Furthermore, new proposed rules from the Department of Health detail additional application requirements and operational standards for cultivation and processing licensees.
Medical Cannabis Dispensaries in Mississippi
As of August 1, 2023, there were 185 licensed medical cannabis dispensaries, primarily located in the Jackson area. Notably, many dispensaries are still working towards operational status. House Bill 1158, passed in March 2023, allows dispensaries up to 18 months to become operational, contingent on annual license renewals, indicating that many applicants from the initial licensing round may soon open their doors.
Dispensary licensees must renew their licenses within 12 months or face revocation if they do not become operational within 18 months. Compliance assistance is available for licensees needing guidance on renewal and operational requirements.
Topical Cannabis Products For Sale
A significant development is the new permission for dispensaries to sell topical cannabis products to adults over 21, regardless of their medical status. Mississippi is pioneering this hybrid model for the sale of topical medical cannabis products such as gels, creams, and lotions, presenting an opportunity for dispensaries to diversify revenue streams and expand their customer base.
For more information on operating within Mississippi’s medical cannabis landscape or how House Bill 1158 may influence your business, accessing legal expertise is advisable.
