Friday October 6, 2017
Fall is here and so is another PotGuide marijuana pricing report. This edition, we’ll review stats from this past summer to bring you the most up-to-date information on cannabis pricing trends in Oregon. As always, our friends at BDS Analytics expertly aggregated data from dispensaries across the state to make this information available to consumers. With these insights, you’ll be able to better understand Oregon’s emerging cannabis market and begin to predict where it may be heading in the future. Let’s dive in, shall we?
Oregon Marijuana Prices
Oregon’s cannabis market has faced its ups and downs in recent years. Between January 2015 and July 2017, dispensaries in the Beaver State have generated total revenues of $861 million. Sixty-one percent ($525 million) of revenues over that time were contributed by the sale of bud/flower, not including the flower used in pre-rolled joints which are tracked separately.
A basic understanding of Oregon’s cannabis sales history is essential for appreciating recent trends, as Oregon’s market has behaved differently from other states including Colorado and Washington. Whereas in the other states flower prices have declined both steadily and significantly over time, Oregon experienced a spike in flower pricing with the onset of “early start.” While average prices began a downward trajectory after “early start,” the second half of 2016 experienced temporary price inflation as supply shortages combined with new and more expensive testing requirements, creating a supply vs. demand imbalance.
Between January and July of 2017, combined average retail prices for flower at Oregon’s medical and recreational dispensaries declined just 2 percent. In contrast, prices in Colorado declined 9 percent over the same period. In July of 2017, on average, Oregon’s recreational retailers charged $8.69 per gram (pre-tax), a modest 1.1 percent decline. Medical dispensaries, on average, charged $7.92 per gram (pre-tax) in July 2017, a 5.7 percent decline from January. All indications are that demand for flower remains strong in Oregon as sales continue to grow. Should a more significant decline in prices occur, expect solid growth in the category as more consumers will be enticed to abandon the black market.
Oregon has no shortage of great flower for consumers to choose from and in some instances, consumers show their willingness to spend a premium for some of their preferred genetics. In fact, the top 10 selling strains in the seven months ending July 2017 contributed nearly 10 percent of flower sales. A few value-priced strains also brought down the average retail price for the top selling stains as the average retail price was $8.39 for the top sellers vs. $8.69 for the entire category.