Photo: James Rojas/WBZ NewsRadio
BELMONT, Mass. (WBZ NewsRadio) — According to the Consumer Price Index, since January 2019, prices on average have increased 26%.
But one industry bucking that trend is the legal cannabis market.
In fact, pot prices are plummeting.
While that's great news for customers, it's a little more complicated for the owners of marijuana dispensaries.
Emma Thurston is the Chief Operating Officer at Belmont's Cal Verde Naturals. "Flower is really what's been dropping," she said. "Flower is the one that's taken a significant hit."
Thurston said one of the factors contributing to the sinking cost of legal pot is having a higher supply of marijuana outweighing demand.
She said that is the case at most local dispensaries. "I want to say it's something like 60 percent. The price has dropped dramatically in the last four to five years, and we'll just continue to see that over the next two years," Thurston said.
While customers are benefitting from the lower costs, Thurston said cannabis store owners need to adjust to survive.
The Acting Chair of the Massachusetts Cannabis Control Commission Bruce Stebbins said the Massachusetts cannabis market is maturing.
He testified before the state's Joint Committee on Ways and Means to address the economic factors affecting the industry.
Stebbins said the cost per gram of marijuana flower has steadily declined making legal cannabis more affordable for consumers.
He testified that since Nov. 2018, the cost of flower declined almost 70%, while monthly revenues increased, indicating "a growing volume of products moving through the regulated marketplace."
He said, "this price stabilization is normal and reflects a competitive and maturing marketplace."
Stebbins added that the state’s adult-use cannabis retailers, cultivators, and product manufacturers in 2024 set a gross sales record of $1.6 billion.
WBZ NewsRadio's James Rojas (@JamesRojasMMJ) reports.