Cannabis Prices Stable Over Last Year
July 25, 2023Cannabis prices have stabilized this year, according to a report from Cannabis Benchmarks. Price compression has dogged the industry for years as increasing production capacity has conflicted with limited retail access and lack of consumer education, pushing prices ever lower. In Massachusetts, for instance, the price of a gram of cannabis averaged $5.82 in June, down nearly threefold from that time three years ago.
This month, according to Cannabis Benchmarks, the average price of a gram in the U.S. overall was $2.25, with prices swinging wildly between state markets. The report’s main figures are in pounds however, which found that a pound of cannabis averaged $1,020 for the week ended July 14. That’s down slightly from this time last year when the price was $1,055 a pound and comes after a recent rally that drove prices up before slumping again.
The most expensive wholesale cannabis is found in Washington D.C., where snarled federal jurisdiction has held up the opening of cannabis retail. “Where’s the least expensive cannabis in the U.S.?” Cannabis Benchmarks wrote in its report. “No surprise here—it’s in Oregon where cannabis prices have been unable to gain a foothold due to massive oversupply. However, indications are the ranks of cultivators and retailers are thinning out, laying the groundwork for spot cannabis prices to begin to form a base. While the moratorium should eventually result in a reduction in the number of licenses in the state, price dynamics will do a more efficient job thinning the Oregon market and, eventually, that of every legal adult use state that becomes oversupplied.”—Danny Sullivan
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