Massachusetts Cannabis Businesses Struggle Amid Plummeting Pot Prices
The price of marijuana in Massachusetts has been plummeting, causing financial struggles for many cannabis businesses in the state. According to data from the Cannabis Control Commission, the price of weed has fallen 62% since 2018, from $14.09 per gram to $5.36 per gram last year.
Nike John, owner of The Heritage Club Dispensary in Charlestown, is one of the many business owners feeling the pinch. She said that the price drop has made it difficult for her to stay afloat, and she’s had to lay off seven of her 22 employees. John, who was among the first applicants to receive a “social equity” license, said that she’s now just breaking even each month.
The decline in marijuana prices is attributed to several factors, including the surge in legal product flowing into the market and the rise of legalized cannabis in neighboring states. Additionally, the state’s purchase limits, which restrict customers to buying up to an ounce of marijuana a day, are also contributing to the decline.
Industry trade group, the Massachusetts Cannabis Coalition, is pushing for changes to the market, including increasing purchase limits and loosening advertising regulations. The group is also advocating for a temporary pause on new licenses for growers, retailers, and other marijuana businesses to try to stabilize the market.
However, not everyone agrees that regulatory intervention is necessary. Robin Goldstein, director of the Cannabis Economics Group at the University of California, Davis, believes that the decline in prices is a sign of a healthy market, as it allows more people to afford and purchase legal cannabis.
As the market continues to evolve, some industry experts predict that marijuana will be federally re-scheduled to a less restrictive class, or even legalized, in the coming years. This could lead to an abundant supply of marijuana and potentially create new opportunities for Massachusetts businesses.
For now, however, many business owners, like Nike John, are struggling to stay afloat. Despite the challenges, John remains determined to keep her business going, saying, “I’m a fight till the end kind of person. So I don’t know if I’ll ever call it. Someone’s gonna have to call it on me.”
