New York’s Legal Marijuana Industry Sees Prices Drop as Competition Intensifies
The legal marijuana industry in New York is experiencing a significant drop in prices, driven by increased competition and a growing number of licensed dispensaries. According to an analysis by the state Office of Cannabis Management, the average price of marijuana products has decreased across various categories, including flower, edibles, concentrates, and vapes.
The analysis found that the price of flowered cannabis has dropped by 5%, from $41.13 to $38.96 per 3.5 grams. Concentrates have seen a 15% decrease, from $58.92 to $50.30 per gram, while vapes have dropped by 15% as well, from $64.89 to $55.35 per gram. Edibles, such as gummies and chocolate bars, have seen a 14% decline, from $29.58 to $25.46 per gram.
John Kagia, the executive director of market policy, innovation, and analytics at the Office of Cannabis Management, attributed the price drop to an increase in the number of brands offering value pricing and lower costs as they compete for shelf space and market share. “As the market has grown to over 500 brands and nearly 370 stores open, we have begun to see average retail prices fall in several leading categories,” Kagia said.
The decrease in prices is expected to benefit consumers, making legal marijuana more competitive with the illegal market. “Lower prices indicate a growing diversity of products available in the market,” Kagia said. “They increase affordability for consumers, and they enable the legal market to compete more effectively against the illicit market.”
The number of licensed dispensaries in New York has increased significantly, with 368 stores now open, up from 245 in November and just 41 at the end of 2023. Retail sales have also seen a surge, with total retail sales reaching $1.46 billion since the first licensed pot store opened in 2022. The OCM report predicts that retail sales will reach $1.5 billion in 2025.
The growth of the legal marijuana industry in New York is expected to continue, with more competition driving prices down and making legal marijuana more accessible to consumers.
