bostondotcom OP t1_j071gl7 wrote on December 14, 2022 at 3:17 PM

From reporter Ross Cristantiello:

Recreational cannabis has never been cheaper in Massachusetts than it was this year.

Prices have been steadily decreasing for more than a year, and those running businesses in the burgeoning industry expect them to keep dropping. While customers may be rejoicing over greater access to marijuana, the lowering of prices has some concerned about the ramifications for cultivators, small businesses, and the employees that make it all run.

Examining cannabis prices and the reasons they have decreased so significantly offers a peek into the state of an industry at a crossroads.

Cheaper than ever

In October, the average price for a gram of flower (the buds of the cannabis plant that are typically ground up and smoked) dropped to $7.76, an all-time low, according to the most recent data from the state’s Cannabis Control Commission.

The average price for a gram did rise slightly in November, back up to $8.04. Still, that was below September’s average price for a gram of flower, $9.17. The average price in September was also an all-time low at the time. So was the average price in August.

Cannabis prices stayed relatively consistent from late 2018, when recreational sales began, through 2019, 2020, and most of 2021. The average price for a gram of flower did drop to $9.74 in April 2020 as the pandemic upended business in a number of ways. But prices shot back up, hovering above $14 for a gram until June 2021. Prices decreased every month since then, with the steepest drop coming between September and October of this year.

Recreational cannabis sales revenue is also going down. Adult-use marijuana sellers in Massachusetts brought in $112.2 million in November, the lowest amount since February of this year, according to data from the CCC. Sales numbers peaked in July, with $132.4 million earned. Sales revenue fell steadily through the fall, but a significant decrease occurred between October and November.