Massachusetts cannabis companies fight in the middle of the low prices

The Massachusetts Cannabis industry is exposed to considerable financial burdens because the marijuana prices have dropped dramatically. Since November 2018, retail prices have dropped from $ 14.09 per gram to $ 5.36 per gram in 2024, which has decreased by 62% by 62%.

Factors that contribute to the price decline

Several elements have led to this downturn:

• Increased cultivation licenses: The approval of the Cannabis Control Commission for more bangs has led to an oversupply that lowers prices.

• Legalization in neighboring countries: With states such as Connecticut and New York, which legalizes cannabis, customers outside the state no longer travel to Massachusetts and reduce demand.

• Purchase limit: State-up-to-date daily purchase limit of one ounce per customer restrict the sales volume and affects sales.

Effects on companies

The drop in prices has led to financial instability for many operators. In 2024, 30 licensed marijuana business hired the business and doubled the number from the previous year. Around 650 licensed cannabis companies are currently working in the state.

Some industry leaders suggest measures such as increasing the purchase limit and the break of issuing new licenses to stabilize the market. However, opinions differ in intervention strategies. Robin Goldstein, director of the Cannabis Economics Group at the University of California, Davis, sees prices as a positive development, which indicates a competitive and ripening market that can outperform the illegal market.