Cannabis Prices in Massachusetts Hit Five-Year Low
MASSACHUSETTS– The cannabis industry in Massachusetts is facing tough times as prices for both wholesale and retail cannabis have plummeted to their lowest levels in five years. This trend is hitting businesses hard, with several companies pointing to an oversupply of cannabis as the main culprit.
According to NBC Boston, state data shows that the average retail price per gram of cannabis flower in Massachusetts was $7.12 in January, down from over $14 per gram in late 2018. The downward trend has been ongoing for the past two years, and many businesses are feeling the pinch.
A “slew of new grow operations” that have come online in recent years are largely to blame for the oversupply, which has resulted in prices trending downwards. Many sources have predicted that the situation could result in trouble for many companies, with some even forecasting a natural attrition within the marketplace.
Trent Woloveck, the chief strategy director at Jushi, the parent company of Nature’s Remedy, a retail chain in Massachusetts, told NBC Boston, “You’re going to see some natural attrition happen within the marketplace.” This echoes a prediction made by another cannabis executive in February, who also noted the tough year that the Massachusetts marijuana trade was facing due to increased competition from neighboring states that have recently launched their own recreational cannabis markets.
Massachusetts has a total of 510 active retailers, cultivators, delivery operators, manufacturers, microbusinesses, transporters, and testing labs, according to the state’s Cannabis Control Commission’s website. There are also 96 licensed medical marijuana companies, further contributing to the oversupply in the market.
The situation is causing significant financial difficulties for businesses in the cannabis industry in Massachusetts. With prices continuing to trend downwards, many are predicting that tough times will continue for the foreseeable future.
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