JACKSON, Miss. (WLBT) – The inaugural medical cannabis sales in Mississippi commenced in January 2023, ushering in continual changes in regulations and market participation. During a recent meeting of the Medical Cannabis Advisory Committee, members discussed the current landscape of the industry, revealing a notable imbalance.
Market Imbalance and Future Dynamics
Ken Newburger of the Mississippi Medical Marijuana Association stated, “We have probably about two to two and a half times more businesses than are needed to sustain the amount of patients we have.” This oversaturation poses challenges, as the industry awaits equilibrium, which remains uncertain. “That oversaturation of businesses is going to create a lot of friction and tension in the market,” he added.
Data indicates approximately 43,000 registered patients, with around 40,000 actively seeking cannabis products, averaging expenditures of about $196 each month. Southern Sky Brands currently operates four dispensaries in Mississippi, with plans to open three additional locations next month. Trey Hughes, Director of Retail Operations for Southern Sky Brands, observed a gradual increase in patient numbers, although he noted, “It’s just not as fast as we would like it to be.”
Patient Barriers and Economic Factors
Hughes also highlighted that many prospective patients are failing to renew their medical cannabis cards, potentially due to cost barriers. For instance, individuals aged 21 to 25 are required to consult a doctor twice, which can increase expenses particularly for those in college. “This age group typically lacks significant funds while in school,” he remarked, suggesting that easing this requirement could enhance patient participation.
Newburger further elaborated on the patient demographics, noting that most certified conditions align with expectations, chiefly chronic pain, cancer, and PTSD sufferers.
Federal Developments and Industry Implications
The industry is closely monitoring potential federal reclassification of marijuana from a Schedule I to a Schedule III substance. Such a shift could alleviate some federal tax burdens for cannabis businesses, though it would not equate to legalization. This would signify a change in how the federal government assesses marijuana’s potential for abuse and its medicinal use.
