Missouri’s licensed marijuana market accounts for approximately 93% of all reported marijuana spending, according to a new state-commissioned study that also recommends reconsidering restrictions on how dispensary licenses are distributed.
The findings are detailed in an 85-page report published this month by the Missouri Department of Health and Senior Services’ Division of Cannabis Regulation. The research was conducted by Cannabis Public Policy Consulting and examined consumer purchasing habits, competition and market conditions throughout the state.
Researchers surveyed 1,200 Missouri adults who had used marijuana within the previous 30 days, collecting responses between March 16 and April 3. The study also analyzed 35 months of state marijuana tracking data, licensing information and regional market statistics.
According to the findings, respondents reported spending an average of $161.81 per month on marijuana products, including $149.95 at licensed dispensaries and delivery services. Purchases from unlicensed dealers averaged $5.26 monthly, while purchases from friends or family averaged $4.79.
The researchers found that licensed businesses accounted for more than 90% of reported marijuana expenditures in every Missouri congressional district.
Flower represented approximately half of consumer spending, averaging $80.88 monthly. Vape products followed at $28.40, with edibles averaging $25.69.
Price was the most frequently identified factor influencing marijuana purchases, cited by 66% of respondents. THC potency followed at 58%, convenience at 40% and strain selection at 36%. Just 17% identified whether marijuana was obtained legally as a factor influencing their purchases.
Among respondents who purchased from unlicensed sellers, 62% cited lower prices and 35% cited convenience.
Beyond consumer spending, the report examined competition among Missouri dispensaries, cultivators and manufacturers. Researchers found no evidence of excessive market concentration when measuring sales and transfers across individual licensed facilities.
However, the analysis could not determine whether ownership was concentrated among companies controlling multiple licenses, prompting researchers to recommend incorporating ownership information into future market assessments.
One of the report’s most significant policy recommendations involves changing Missouri’s dispensary licensing structure.
Researchers recommend removing population-based and congressional district-based requirements for allocating dispensary licenses, instead allowing future licensing decisions to reflect consumer demand and regional economic conditions.
The report acknowledges that changing the state’s constitutional licensing framework could be difficult. As alternatives, researchers suggest maintaining existing restrictions, issuing additional licenses in districts with relatively higher market concentration, or expanding dispensary licensing statewide to increase competition and potentially reduce prices.
Researchers also recommended considering grants, tax incentives and low-interest financing to encourage marijuana businesses to establish operations in underserved communities.
The report represents the first phase of Missouri’s broader Cannabis Market and Economic Impact Study. A second phase, expected in November, will examine the industry’s economic contributions, business conditions and long-term sustainability.
