Market Map

Arkansas
Cannabis Market

Arkansas Cannabis Market At-A-Glance

Overall Rating: B-
Currently 2.3% of Arkansas residents are registered medical marijuana patients. Arkansas also happens to be one of the harshest states in the nation when it comes to cannabis possession policy. A person who is found with less than 4 ounces of cannabis can spend up to 1 year and jail and have to pay a $2,500 fine. Along with a few other states, citizens of Arkansas will try for a recreational cannabis measure on the 2022 ballot initiative.
Medical Use: Yes
Adult Use: No
Market Potential
C
About half of the Arkansas cannabis market has been capitalized on. This leaves room for potential entry.
Licensing
C-
The licensing fees are average - there are annual fees as well.
Competition
B-
Competition in Arkansas is overall good. There is room for competition in the market.
Tax/Regulatory Structure
A+
No taxes on medical cannabis.

Arkansas Cannabis Details

Population (Rank)
3,018,000
#33
Size/Density
53.1 sq. miles
#40
Medical Cannabis?
Yes
2016
Adult-Use Cannabis?
No
NA
2020 Medical Sales
2022 Projected Medical Sales
$24,000,000
$139,000,000
+479%
2020 Adult Use Sales
2022 Projected Adult Use Sales
NA
NA
NA
Regulatory Agency
The Medical Marijuana Commission
https://www.dfa.arkansas.gov/medical-marijuana-commission
# of Dispensaries (allowed/issued)
40
21
# of Cultivators (allowed/issued)
8
4
# of Manufacturers (allowed/issued)
Allowed for both cultivation and dispensaries
Allowed for both cultivation and dispensaries
# of Testing Labs (allowed/issued)
NA
NA
Vertical Integration?
No one person can own an interest in more than: (1) One (1) cultivation facility; and, (2) One (1) dispensary.
Residency Requirements?
60% of individuals with an ownership interest, and whoever submits the application, must have been Arkansas residents for the previous seven consecutive years
Social Equity?
Yes

Cannabis Taxes

Combined Tax Rate
None
Excise Tax
None
Retail Sales Tax
None
Local Sales Tax
None
State Sales Tax
None
Cultivation Tax
None

Licensing Fees (per year)
*Varies based on gross revenue

Dispensary
$10,000
Cultivator
$25,000
Manufacturer
$10,000

Application Fees

Dispensary
$6,000
Cultivator
$10,000
Manufacturer
$6,000
13/09/2021