Prices For Cannabis Products Have Never Been Lower

New reports say that prices for cannabis and related products are lower than they were in previous years. And while other aspects of living like rent and food prices are through the roof, cannabis users are the current group least affected by inflation. 

According to cannabis analytics firm Headset, it analyzed data in cannabis sales across California, Colorado, Michigan, Nevada, Oregon, and Washington. When averaging the price per milligram or gram of THC in cannabis products like flower, edibles, and vapes, the firm found that prices fell by 16.7%, 11.8%, and 12.4%, respectively, within the last year. 

Does this mean weed users don’t have to worry about inflation? Well, that’s not entirely the case. The cannabis industry is literally one of the most complex to exist, especially because the plant is illegal under federal law, meaning individual states have their own regulations, growing climates, and prices. 

Experts say that a declining price for cannabis products doesn’t mean the industry won’t see some kind of inflation in the coming years. Also, because states with legalized cannabis cannot conduct interstate commerce, this means prices for the plant in individual regions depend on state-wide supply and demand. 

As per reports, cannabis companies in individual states often face a list of challenges, like competing with the illicit market by offering better prices, legalized competition within regulated operators, and running such a complex business in an industry with constantly evolving laws. 

According to Bethany Gomez, managing director of Chicago-based cannabis market research firm Brightfield Group, she says although the space has been thriving, cannabis operators have experienced their fair share of supply chain and labor issues, especially under the pandemic that was expected to bring turmoil. 

But, it turns out the pandemic was actually rather beneficial for cannabis, as sales were through the roof when individuals were faced with boredom day in and out in their homes. But, Gomez notes the pandemic also caused an increase in labor and manufacturing costs. 

Instead of consumers dealing with the increased expenses by paying for a higher-priced item, Gomez says these increased costs are “eating away at the margins,” and a lot of that is “getting swallowed and not necessarily [passed] along to consumers.” So, in short, no, cannabis is not unsusceptible to inflation, and with the constantly changing laws, who knows when and if that will take place.