As the industry continues to mature, wholesale prices on flower, concentrates and pre-rolls continue to drop, according to a new analysis of 13 state markets from industry B2B platform LeafLink.
According to the LeafLink Wholesale Pricing Guide 2023, the average national price for a pound of cannabis flower is about $1,083, a drop of more than 41% year-over-year that continued what the report calls a “pricing freefall” in the category, though the price drops vary widely from state to state with Washington seeing the largest drop.
Concentrates average $12.52 per gram and pre-rolls average $5.28 per gram, according to the report, drops of 24.04% and 12.42% year-over-year, respectively. Most states saw modest increases or decreases in concentrate prices, but figures were brought down by large drops in states like Michigan (-56%), Washington (-33%) and Oregon (-24%).
“Oversupply and oversaturation continue to fuel downward price trends,” states the report’s conclusions, specifically citing Oklahoma and Oregon as markets with more biomass than customers. “A race to the bottom is ongoing as brands attempt to gain a foothold. As evidenced this year, average prices dropped across all categories.”
Cartridge prices, which were up the previous year, also fell in 2022 at an average of 12%, down to an average of $16.50 per gram. A handful of states (including Alaska, Arizona, Colorado and Massachusetts) saw year-over-year increases, though they were offset by “significant” drops in other states.
Edibles costs bucked the trend, holding at $0.07 per milligram.
The effects of inflation on the market also “cannot be understated,” according to LeafLink, which notes that customers have less money to spend, causing retailers to see smaller basket sizes and less foot traffic, though it states that “the legal market is undoubtedly growing.”
The report also provides an in-depth look at wholesale prices in all 13 state markets in which LeafLink operates, noting that while national averages are valuable, variability at the state level is most important for operators.
— Brian Beckley