Oregon per-gram hashish costs have fallen 16% from final yr to $4 firstly of this yr, in response to the Oregon Liquor and Hashish Fee’s 2023 Recreational Marijuana Supply and Demand Legislative report. The costs within the state are actually at an all-time low.
“The OLCC estimates that market demand was 52% of provide in 2021, and 63% in 2022. The truth that 2022 was nearer to produce/demand equilibrium than 2021 stands in distinction to the deteriorating market circumstances. On the one hand, the truth that provide was nearer to demand is a mirrored image of the lower in annual manufacturing by OLCC Producers in 2022, a self-correction out there that gives a glimmer of hope for 2023. However, the declining wholesale and retail costs for usable marijuana are attributable to giant shares of usable marijuana stock leftover from earlier years, which is prone to proceed to place downward strain on costs.” — OLCC, “Leisure Marijuana Provide and Demand Legislative Report,” Feb. 2, 2023
The company discovered that the full amount offered of usable hashish elevated in each 2021 and 2022, however the OLCC described the rise as “a reasonably tepid price.” The rise in 2022 was 2% in 2022 and simply 1% in 2021, in comparison with a progress price of 27% in 2020.
“The amount offered of concentrates/extracts, edibles, and tinctures, then again, declined in 2022,” the company mentioned within the report. “Due to the variety of merchandise out there, it’s troublesome to do an apples-to-apples comparability of portions offered from one yr to the following.”
The company notes that the state noticed a gross sales enhance from 2020 to 2021 – from $1.1 billion to $1.2 billion – however decreased to $994 million final yr. Month-to-month gross sales final peaked in April 2021, the company mentioned, however have declined each month since, save for a spike in August 2021.
In keeping with the OLCC report, the ample hashish provide in 2021 and the declining costs all through 2022 positioned cannabusinesses underneath “extreme pressure.”
Regardless of lawmakers putting a moratorium on producer and retailer licenses, the OLCC mentioned the variety of producers and retailers are “now at their highest ranges ever.” Whereas the moratorium applies to new licenses, some functions eligible final yr had been first filed in 2018. The company mentioned that whereas the variety of licenses continued to rise final yr, the variety of lively companies “continued to say no.”
The OLCC does see “constructive indicators of improved (or at the very least, much less dangerous) market well being” this yr, pointing to a much less steep decline in retail costs and “comparatively sturdy” gross sales of edibles – a product sector which noticed a modest 0.2% progress final yr.
“The Oregon leisure marijuana market has repeatedly proven that it’s like some other market in a single essential respect, however distinctive in one other,” the OLCC mentioned within the report. “Like different markets, it’s aware of market indicators and ramps provide up or down relying on demand. In contrast to different markets, nevertheless, the federal standing of hashish signifies that Oregon is what has been termed a ‘market in a field’ – provide should keep throughout the state’s borders, regardless of its sturdy comparative benefit in hashish manufacturing.”
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