According to the latest Supply and Demand Report for Oregon’s Recreational Marijuana Market, prices are reaching new lows.
The median retail price for a gram of usable cannabis dropped to approximately $4.
“The Oregon recreational marijuana market is in arguably the weakest economic position it has been in since the inception of the program in 2016,” the state’s liquor and cannabis board wrote.
The decline is blamed on a decrease in the growth of demand in Oregon, a production cycle that responds to market signals on a lag, and increasing stockpiles of inventory.
The agency noted that market demand is moving closer to being in sync with supply and said the self-correction “offers a glimmer of hope for 2023.”
“On the other hand, the declining wholesale and retail prices for usable marijuana are due to large stocks of usable marijuana inventory leftover from previous years,” it wrote.
The agency said this is likely to continue to put downward pressure on prices.