Many experts have mentioned the falling price of marijuana in legal states and how it can impact the industry. And while there are some negative aspects to decreased prices, there is one major benefit: more sales.
The state of Oregon announced that they will sell around $543 million worth of cannabis in 2018. That's a 29 percent increase over the sales in 2017, and far exceeds many experts' projections for cannabis sales in Oregon.
The biggest contributor to increased sales is low prices. The price of cannabis in Oregon has decreased by more than 50 percent since 2015. For instance, the average gram of marijuana in Oregon cost $14 in 2015 but last year the average price was only $7.
These increased sales also lead some to believe the state could see a bigger cannabis market than expected. Experts say Oregon should have a billion-dollar cannabis market by 2025, but if sales continue to increase, that billion dollar market could arrive sooner.
Of course, this doesn't mean that Oregon's low cannabis prices are necessarily good news for dispensaries. While those low prices may be increasing sales, cannabis businesses are experiencing much smaller margins than they were a few years ago. So sales may be going up, but that doesn't mean profits are as well. If sales don't continue to increase at the same rate and prices continue dropping, some Oregon cannabis companies may go out of business.
But until then, Oregonians will continue reaping the benefits of those low, low prices.
(h/t Seattle Times)