In 2015 experts predicted that cannabis prices would rise as a result of legalisation and taxation. Now it has become apparent that the opposite has happened, with cannabis prices dropping in America.
There were initial price hikes just after legalisation in the uncertain environment as businesses began to be set up around cannabis, but now overall the retail price of cannabis is going down across the States – as regulation replaces prohibition, the risks of growing cannabis are going down, and therefore so is the cost.
Green Rush Daily reports that black market operators are beginning to find themselves priced out of the game entirely.
Under prohibition alcohol costs tripled and quality control plummeted. The same thing has been happening with cannabis.
There are some exceptions to the new rule – in states like Massachusetts, prices are still high because consumers don’t have that many options, and greenrush daily also reports that Medical marijuana restrictions also limit the pool of available buyers, decreasing demand and keeping the price up.
One Colorado cannabis dispensary operator stated: “My dispensaries were charging $55 an eighth before tax when we first opened in 2014, and now we charge $25.”
The average price of cannabis per gram in the US has dropped from $25 to less than $10 per gram in some states such as Washington, but researchers estimate that we could see prices drop as low as $2 per gram in the future.
Flash sales for events such as 420 this year saw bud prices in Colorado drop to an average of $5.77 per gram!Researchers also noted that despite lower cannabis prices, cannabis use among teenagers is not on the rise.
Researchers also noted that despite lower cannabis prices, cannabis use among teenagers is not on the rise.