Illinois Has The Most Diverse Cannabis Industry In The Nation, Study Finds

SPRINGFIELD, IL – A new study reveals that Illinois has the most diverse cannabis industry in the United States, the state’s Cannabis Regulation Oversight Office announced.

The office published the Disparity and Availability Study for adult use cannabis licenses in Illinois, which examined 559 adult use cannabis licenses issued by the state to more than 400 businesses during the study period, from the start of adult use cannabis sales, January 1, 2020, through January 31, 2023.

During that time, 59% of dispensary licenses were issued to minority- or women-owned businesses (compared to 21% for the medical cannabis market).  The figure rose to 60% when all licenses were taken into account.

The study also found that minority- or women-owned businesses held 63% of craft grower, 61% of infuser, and 74% of transporter licenses. 84% of the state’s Direct Forgivable Loans went to minority- or women-owned businesses.

“We’re incredibly proud of our emerging cannabis industry, and we’re fully committed to making this an industry where people most affected by the War on Drugs can start their own business and thrive,” said Illinois Governor JB Pritzker. “That’s why Illinois commissioned the largest, independently reviewed cannabis-focused disparity study in the nation, and the results show that our administration’s policies focused on social equity have paid off. Illinois is first in the nation when it comes to diversity in the cannabis market, and this report provides concrete steps we can take to continue supporting new businesses in a highly competitive marketplace.”

However, the Chicago Tribune reported that only a small portion of the cannabis industry’s revenue went to minority businesses, saying that majority Black ownership made up only 0.02% of recreational dispensary sales while white male owners took in 78% of recreational dispensary sales, and 91% of grower sales.

Scott Redman, founder of the Illinois Independent Craft Growers Association, said that few of the minorities that have been granted licenses have been able to open for business, noting that just 16 of 87 craft grow licenses were up and running by June.  Redman said many of these businesses will need extensions beyond their current Aug. 1 deadline to open.  “If nothing else, this study also shows the extreme need to provide some forms of financial support to (social equity) companies in order to get off the ground,” he said.

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