Prices of marijuana flower, edibles and vape products, when averaged by the price per milligram or gram of THC, declined by 16.7%, 11.8% and 12.4%, respectively, from January 2021 to January 2022, according to cannabis analytics firm Headset, which tracked sales in California, Colorado, Michigan, Nevada, Oregon and Washington.
“This would indicate that inflation has not yet affected the prices consumers are paying for recreational cannabis in the United States,” Cooper Ashley, Headset’s senior data analyst, told CNN Business via email.
While any cost savings are welcome news to consumers who are feeling price pressures elsewhere, the product trends don’t tell the full story, analysts say. Price declines may not mean cannabis is immune to inflationary effects, they’re just yet another example of the complex business dynamics playing out in this burgeoning industry.
“Inflation is obvious when all else is equal,” said Andrew Livingston, director of economics and research at Vicente Sederberg LLP, a cannabis law firm based in Denver.
In cannabis, there’s little homogeneity — especially when it comes to pricing. Marijuana remains federally illegal, which effectively eliminates interstate commerce. This means that states that have legalized the drug have set their own regulations, resulting in different market sizes and unique industry dynamics.
As a result, prices become heavily dependent upon aspects such as state-level supply and demand, Livingston said.
That can include heavy…
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Prices of marijuana flower, edibles and vape products, when averaged by the price per milligram or gram of THC, declined by 16.7%, 11.8% and 12.4%, respectively, from January 2021 to January 2022, according to cannabis analytics firm Headset, which tracked sales in California, Colorado, Michigan, Nevada, Oregon and Washington.
“This would indicate that inflation has not yet affected the prices consumers are paying for recreational cannabis in the United States,” Cooper Ashley, Headset’s senior data analyst, told CNN Business via email.
While any cost savings are welcome news to consumers who are feeling price pressures elsewhere, the product trends don’t tell the full story, analysts say. Price declines may not mean cannabis is immune to inflationary effects, they’re just yet another example of the complex business dynamics playing out in this burgeoning industry.
“Inflation is obvious when all else is equal,” said Andrew Livingston, director of economics and research at Vicente Sederberg LLP, a cannabis law firm based in Denver.
In cannabis, there’s little homogeneity — especially when it comes to pricing. Marijuana remains federally illegal, which effectively eliminates interstate commerce. This means that states that have legalized the drug have set their own regulations, resulting in different market sizes and unique industry dynamics.
As a result, prices become heavily dependent upon aspects such as state-level supply and demand, Livingston said.
That can include heavy…
