How to Open a Dispensary in Virginia [2024 Guide] - MOST (2024)

Over the past decade, recreational adult-use cannabis has turned from a whisper to a full-fledged shout across the US.

As of this writing (in the first half of 2024), recreational adult-use cannabis is legal in 24 states and in Washington, DC. On top of that, legal medical cannabis programs exist across 38 states.

That’s almost half the US in which recreational cannabis can be legally consumed by adults.

How the times have changed.

Turn back the clock, and the thought of legal cannabis anywhere other than fabled red light districts seemed a pipe dream.

Traditional American values—in particular—seemed to fly in the face of legalizing any inebriating substance beyond alcohol, especially one federally depicted as a Schedule I narcotic alongside heroin.

“Traditional values” are changing, though.

This shift is reflected in Virginia, a longstanding stronghold of those steadfast, traditional national beliefs and philosophies. Case in point—the state has legalized medical cannabis since 2020 and recreational cannabis since 2021.

In fact, Virginia was the first southern state to legalize recreational cannabis consumption, growth, and possession for adults in April 2021.

Three years is a short time relative to the rest of the US’s rich history, and the cannabis market within Virginia undoubtedly reflects its youth. The area is amid exciting times, with more expected to come, but much learning remains regarding the state’s cannabis market.

Thus, those aiming to open or invest in dispensaries must navigate murky waters.

Even more complex is that cannabis sales aren’t yet legal throughout Virginia.

All that said, the state plans for business owners to open and run legal recreational dispensaries soon. Getting in on the ground floor now could prove vital, ensuring you’re ready to hit that same ground floor running when recreational dispensaries eventually open.

Below, we’ve written a detailed guide on opening a recreational dispensary in Virginia. Read it, study it, and set yourself up for success.

Investors and entrepreneurs in the cannabis space should be intrigued by Virginia’s legalization.

There’s a need to temper this enthusiasm, though.

After all, cannabis growth, possession, and consumption are only legal for personal purposes in Virginia—recreational cannabis can’t yet be sold.

An official legal framework for commercial cannabis sales doesn’t exist in the state.

However, Virginia isn’t without progress on the matter. Much remains vague on the topic, but a present sense of momentum gives many cannabis entrepreneurs and investors hope for an imminently bright future.

On February 28, 2024, House and Senate lawmakers passed legislation to catalyze the Virginia Cannabis Control Authority (VCCA) to begin a commercial adult-use application process by September.

That application would theoretically enable 21-plus consumers to buy commercial cannabis by 2025.

It’s also essential to examine the state of medicinal cannabis throughout the state, as it informs us of where recreational dispensaries could end up.

Virginia’s medical cannabis market has experienced a transition, with the program now falling under the VCAA’s umbrella. This massive managerial shift has been enacted to improve patient accessibility and overall efficiency. Heightened safety and quality standards drove this substantial change.

Currently, 21 medical dispensaries operate across four Virginia-based Health Service Areas.

It’s worth noting that many believe cannabis prices in medicinal dispensaries across Virginia are too high. Thus, patients are taking their business to other states.

However, the most recent numbers show that the state’s medicinal market produces reasonably tantalizing revenues. In 2022 alone, Virginia’s medicinal cannabis market raked in up to a projected $11 million.

Bringing down prices could drive those respectful revenues far higher, which is something that those potentially entering the recreational space should note.

Legal commercial sales continue to hang in the balance for Virginia, resting mainly in the hands and decision-making prowess of Republican Governor Glenn Youngkin.

The recent legislation passed means the state sits on the cusp of a thriving retail cannabis market.

Provided Governor Youngkin overcomes his hesitancy towards legalized cannabis sales, the state’s economy could leverage the $3 billion illicit cannabis market with tested, safe, and taxed products.

Governor Youngkin’s hemming and hawing prevents real insights from being provided on the market. We can only tell you there’s much potential and a robust framework for success.

The medicinal market has yet to hit its stride despite the steady proliferation of dispensaries. Much of these limitations have to do with poor pricing. Medicinal cannabis is costlier in Virginia—averaging $14 per gram—than in neighboring states.

Until the above issue is amended, the market’s future outlook will remain somewhat positive. But the outlook won’t be as sunny as it could be.