Oregon
Oregon’s cannabis market remains a battle ground after nearly a decade of adult-use sales. Regulators chose an open licensing structure that allowed thousands of operators to compete for their share of the market, which led to significant overproduction, crashing prices and razor-thin margins for operators across the state.
Rec sales launch
October 2016
Total sales
$6.623 Billion
2016 – $14,396,866
2017 – $522,352,682
2018 – $648,392,435
2019 – $726,205,143
2020 – $1,111,027,557
2021 – $1,184,090,296
2022 – $994,307,702
2023 – $955,415,748
2024 – $397,846,732*
*Sales through May 2024
Total licenses – 2,798
Producer – 1,394
Processor – 300
Retailer – 799
Wholesaler – 257
Testing – 15
Research – 1
Hemp – 32
Overproduction
Oregon producers brought in 9.6 million pounds of cannabis in 2023, which is down from the record 12 million pounds harvested in 2021 and despite a 23% decrease in sales during the past two years, according to state data. This oversupply is largely due to Oregon having 1,394 producers, nearly double the number of licensed retailers (799) and more than quadruple the number of processors and wholesalers in the state. The median retail price per gram has fallen significantly in the past two years, hitting an all-time low of less than $4 in February 2023, 16% lower than in 2022, and remaining at that price point today.
Oregon Governor Tina Kotek signed a bill on April 11, 2024, that put an indefinite hold on the issuance of new licenses.
Suspended Testing
A court ruling in September 2023 forced Oregon regulators to approve the sales of previously recalled products, more than 2,000 pounds of flower and 60,000 pre-rolls, that tested positive for the pathogenic mold aspergillus. The ruling came after the Oregon Health Authority mandated testing for four species of mold in March 2023, which sparked outcry from state cultivators that the mold was too common to avoid.
According to the OLCC, the state industry had an overall 9% failure rate for flower tested for aspergillus. The OHA adopted a temporary ruling to suspend the aspergillus testing requirement on September 8, 2023. In a press release, OHA Public Health Division administrator André Ourso said the agency “remains concerned about the health impacts of Aspergillus on cannabis users, including Oregon Medical Marijuana Program registrants, and will consider revisiting rulemaking in the near future.”