You know it’s a real free fall when even the hairdo media is noticing
Around here, we have been reporting for months if not the past year on falling cannabis prices. Retail prices. Wholesale prices. All of the above, and all while some cultivations and dispensaries close their doors.
But with prices at an actual five-year low, everybody’s noticing, and that’s where things begin to really sting. Reality had already set in for industry investors and executives; now, public perception is catching up too. As NBC10 Boston reported on April 1 in an already much-cited analysis, High Supply Lowers Prices, Profits in Mass. Cannabis Market:
Multiple business executives in the industry tell NBC10 Boston an oversupply of product is the main culprit of a falling price. In Massachusetts, a slew of new grow operations, dispensaries and products have exploded onto the scene in a relatively short amount of time. While demand has grown, too — almost $200 million in adult-use sales in the first two months of 2023 — supply is outpacing demand.
Among their specific findings from state data, the average retail price per gram of flower has dropped to $7.12, down from more than $14 in 2018. Let that sink in, and imagine how the whole supply chain is impacted.
In short, the pain is real. Unless you’re strictly a consumer, in which case this may be the time to stock your freezer with low-priced high-end cannabis. Support your local retailers, and stay tuned for updates. With more than 500 licenses for everything from testing labs to delivery operators as well as nearly 100 medical operators in play, the playing field is only getting more competitive.
This is an issue that basically intersects with everything we cover at Talking Joints Memo, but with so much chatter about the fallout I just wanted to post something that addressed the (understandable) hype directly.