The falling price of legal marijuana is shaking up the dynamics of the marketplace.
“Wholesale marijuana prices declined in 2016 from $2,500 to $1,000 per pound, with some dispensaries offering recreational ounces as low as $65 on CannaSaver.com,” said Brian Shapiro, Chief Executive Officer of CannaSaver. Shapiro said that grow houses flooded the market with cheap marijuana and subsequently drove prices down. Only concentrated cannabis products like oils remained fairly unchanged in pricing.
In Washington state, flower prices plunged from $25 a gram in August of 2015 to approximately $6 currently. In Colorado, the price fell from $8 a gram to just under $6 a gram. This equates to roughly $168 an ounce or $2,688 a pound. Cannabis Benchmarks reported that the average spot price for cannabis in the U.S. fell to $1,486 in December. So far in 2017, overall cannabis prices have risen for the past three weeks, but it is still on average only $1,641 per pound.
