Welcome to the sixth annual “State of the State” post on Oregon cannabis. This year was relatively staid compared to 2020, but key features included: a plateau in pricing and regulated sales; intensifying local competition; important new laws, administrative rules and policies; a hollowed out hemp market; and some interesting large company activity.
Sales look good, but dig a little
Backed by strong pandemic tailwinds, Oregon rocketed past the $1 billion sales mark in 2020. In 2021, the state will exceed that number again thanks to a big start. Lately, though, things have slowed appreciably, with a year-over-year decrease logged in every month since June.
Prices dropped throughout the fall as is typical after harvest. Today, the retail market is saturated with $3 grams of flower and $5 edibles. Wholesale flower is running at $900/lb. today versus $1200/lb. a year ago (and $1300 in July of this year). It’s not as bad as the slaughter of 2018, but it’s hard to imagine the $1800/lb. prices of yesteryear ever coming back.
For anyone interested in doing a deeper dive on some of these trends, the OLCC keeps some good “Marijuana Market Data” sets here. What you won’t find in those sets