The 2023 Recreational Marijuana Supply and Demand Legislative report from the Oregon Liquor and Cannabis Commission states that per-gram cannabis prices in Oregon have decreased by 16% from the previous year, reaching an all-time low of $4.
According to the OLCC, the market demand for marijuana in Oregon was estimated to be 52% of the supply in 2021 and 63% in 2022. Despite the deteriorating market conditions, 2022 was closer to achieving supply/demand equilibrium than 2021. This was due to OLCC Producers reducing annual production in 2022, which offered hope for 2023. However, the prices for usable marijuana continue to decline due to the excess inventory from previous years, which will likely continue to exert downward pressure on prices.
In its report, the OLCC stated that the total amount of usable cannabis sold in Oregon increased in 2021 and 2022, but only at a modest rate. Compared to the 27% growth rate in 2020, the increase was just 1% in 2021 and 2% in 2022. The report also noted a decline in the number of concentrates/extracts, edibles, and tinctures sold in 2022. However, due to the wide variety of products in the market, it is challenging to directly compare the quantities sold from one year to the next.
The OLCC report highlights that Oregon’s sales of cannabis increased from $1.1 billion in 2020 to $1.2 billion in 2021 but decreased to $994 million in the following year. Monthly sales reached their highest point in April 2021 but have declined since, except for a spike in August. The report notes that the surplus of cannabis in 2021 and the subsequent price decrease throughout 2022 significantly strained cannabis businesses.
To read more, click on Slam Buds