Colorado Marijuana Prices Plummet to Record Low
The wholesale price of marijuana in Colorado has hit a record low, with a pound of harvested flower now costing just $649. This marks the lowest price since the state began tracking legal weed prices, and it’s a far cry from the $1,700 per pound seen in 2021.
Despite a 25% reduction in the number of licensed marijuana cultivations, wholesale prices have continued to fall. In fact, prices have been declining steadily since 2021, with a brief improvement in 2024. The current market has seen a significant drop in dispensary sales, with figures falling from over $2.2 billion in 2021 to just over $1.4 billion in 2024.
The decline in prices is not limited to wholesale marijuana. Dispensary sales have also been sliding, with a 36% decrease over the past four years. Several high-profile marijuana brands have left the state, and other businesses have closed due to declining sales.
The Colorado Department of Revenue releases quarterly data on the state’s marijuana industry, which includes the Average Market Rates (AMR) for various wholesale marijuana categories. The AMR is used to set excise taxes for growers, and the latest figures show that prices are at an all-time low.
The decline in prices is a concern for growers, who are already facing increased competition and declining sales. The lack of price rebound despite a reduction in cultivation licenses suggests that the market may be oversupplied, leading to further price drops in the future.
