Oregon’s marijuana market ended 2025 with a record low price of $3.33 per gram, as total sales plummeted to their lowest point since 2019. The state’s cannabis industry has been grappling with a persistent supply-demand imbalance, leading to a surplus of 13.5 million pounds of marijuana harvested last fall. This glut is expected to further pressure prices in the coming year.
Despite a peak of $1.14 billion in sales in 2021, Oregon’s marijuana market experienced a significant decline of over 20% in 2022, with sales dropping to $926 million. Prices also fell by 40% during this period, making it a challenging time for small businesses in the industry.
While there is no indication of a market turnaround, a potential lifeline for Oregon’s marijuana businesses could be lower taxes. However, the industry still faces significant challenges due to its illegal status under federal law, which classifies marijuana as a Schedule I drug with “high abuse potential” and “no accepted medical use.”
Recently, President Donald Trump’s administration began the process of reclassifying marijuana as a Schedule III drug, which would place it in the same category as anabolic steroids and ketamine. This move could potentially provide relief to the industry, but it remains to be seen how it will impact the market.
