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BOSTON (WBZ NewsRadio) — There have been some growing pains for the cannabis industry as of late. Because a good amount of dispensaries are growing their own products, the cost of marijuana in Massachusetts is plummeting as businesses balance product supply and demand.
Owner of Resinate Inc. in Worcester Peter DeCaro told WBZ's Kim Tunnicliffe that he predicts the falling price may lead to the closure of many businesses.
"Like most industries where capacity has become significant, consolidation will be inevitable, some will potentially not make it, and others will probably get gobbled up and some will prevail. We will see brands competing against other brands and we will see those brands that are typically more desirable in the market prevail. We'll see others in an oversaturated market and stress on those cultivators," DeCaro said.
DeCaro says for the time being though, the high amount of pot shops open with cheaper prices is good news to consumers. Right now, there are 245 retail cannabis vendors open in the Commonwealth.
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"On the wholesale level we're seeing prices come from $4,400 to $4,500 a pound a year or two ago, to underneath $1,000 a pound for cannabis flour. The availability of products is much easier, much more convenient for the consumer and patient," DeCaro said.
WBZ's Kim Tunnicliffe (@KimWBZ) reports.
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