Colorado and Washington were the first states to legalize the non-medical use of cannabis. In both states, cannabis prices have decreased considerably since the inception of the drug’s legal sale.
In Colorado, from 2014 to 2017, the average annual price of cannabis flower decreased by 62%, from $14.05 per gram in 2014 to $5.34 in 2017. Over the same period, the price of cannabis concentrates decreased by 47.9%, from $41.43 per gram to $21.57. The price of infused edible products has hovered around $18 per 100 mg package but has not exhibited a consistent trend over time.
In the State of Washington, the price per gram of flower (pre-tax) decreased by 77 per cent, from $17.23 per gram in 2014 to $5.18 in October 2017.The long…
The cannabis market appears to be moving away from flower (primarily for smoking), the price of which has been decreasing since 2014. On the other hand, an increase has been observed in the demand for products such as concentrates and edibles. In 2017, more than one-third of total sales were for non-flower products, compared with one quarter in 2014. The most popular products, after cannabis flower, are oil-filled vaporizer cartridges, wax/shatter concentrates and infused edibles.
The decrease in retail prices is considered to reflect a competitive market in which both cultivators and retailers are constantly vying for business, although the decrease has also led to an increase in demand, sales and tax revenue. Thus, one concern in the State of Washington has been an oversupply of cannabis in the market because of overproduction: the area available for cannabis production was initially capped at 2 million square feet and later raised to 8 million square feet, and the number of licences for retail outlets, which was initially capped at 334, increased to 556 by January 2016. During the period January to November 2018, total sales of different cannabis products were estimated at $1.4 billion in Colorado. The average retail price of inhalable products, which accounted for 80% of total sales, decreased by 10%; the average retail price of ingestibles (edibles) increased by 9% ; and the price of topical cannabis products by 10 %.
Resource: United Nations – 2019 Report on Cannabis & Hallucinogen
Author: David Katz