At a time when prices on just about everything seem to be rising, luckily, that isn’t the case for weed smokers in most U.S. markets.
If you keep up with cannabis news, you’re likely to read about declining prices and their impact on the regulated weed industry. Lower prices put pressure on the bottom lines of cannabis businesses, particularly small growers. Many companies have faltered or failed as the going price of weed has continued to fall.
While the threat to businesses is real, falling prices benefit consumers and patients, especially those on a fixed or limited income. This may seem obvious, but it’s a point of view that doesn’t get a lot of press. Who doesn’t like saving money on weed? And with consumer prices 24% higher than they were in 2020, according to data from Bankrate, any price tags that mean relief for the pocketbook are a welcome sight.
There is no denying that the declines in weed prices in many markets have been significant. In Michigan, the average retail price for adult-use cannabis flower dropped 80% since 2020 to $83.71 per ounce in 2024, according to a market analysis by Cannabis Business Times. In Oregon, where growers are dealing with a glut of pot caused by overproduction, the average price for a gram of weed fell to $3.33 in July, according to state data, the lowest price per gram recorded.
Value Brands Lead the Way with Affordable Weed
While some companies are struggling with lower cannabis prices, some brands have leaned into value pricing to attract consumers. Rusty Willenkin is co-founder and CEO of Old Pal, a value-priced cannabis brand that produces eighths of weed that sell for as little as $10 at some dispensaries in California (before taxes). He says that offering cannabis at affordable prices can help grow the industry.
“Value-priced cannabis plays a critical role in the industry, especially as more states come online and new consumers enter the space,” Willenkin says in a written interview. “Not everyone wants or can afford premium-priced flower, but that doesn’t mean they don’t deserve good weed. Brands like us help make cannabis more inclusive by offering high-quality, consistent products at friendly prices. More value options mean more access, more choice, and ultimately, more reasons for people to come back.”
While nobody wants to pay too much for the cannabis they buy, no one wants to be stuck with bunk weed, either. Willenkin says that his company concentrates on the basics to produce good-quality herb at an affordable price.
“We stay focused on what matters: tight quality assurance, streamlined SOPs, and close collaboration with our cultivation partners in each market,” he explains. “We’re not here to reinvent the wheel. We just want to make sure it rolls smoothly. By creating efficiencies and cutting unnecessary steps, we’re able to offer something classic, consistent, and priced right for more people.”
Arizona’s Copperstate Farms is a vertically integrated cannabis company with the value label Uncle X in its portfolio of brands. Tim Nolan, chief operating officer, says that with more than 1.7 million square feet of cannabis canopy in greenhouses, the company has the capacity to produce at scale, while the unique characteristics of the location further reduce costs.
“Growing in a greenhouse in sunny Arizona at over 5500 ft., we naturally have the perfect climate to cultivate cannabis,” Nolan writes in an email. “The sunshine eliminates the need for artificial lighting, and the elevation minimizes the need for cooling and dehumidification. This allows us to minimize our carbon footprint and reduce our energy bill substantially. Having a lower energy bill allows us to put the care into the trim and harvest process while delivering consumers affordable cannabis.”
Copperstate Farms then leverages these advantages with its vertically integrated business model to offer products to consumers at affordable prices. At the company’s Sol Flower dispensaries, half-ounce bags of Uncle X flower in a variety of strains can be purchased for $44 before taxes.
“Brands like Uncle X play an important role in making cannabis more accessible by offering consistent quality at a lower price point,” Caroline Riggs, executive vice-president at Copperstate Farms, writes in an email. “For many consumers, whether they’re new to cannabis or longtime users, having affordable options removes a barrier and encourages more informed, responsible use. Value brands help normalize the market and ensure that quality isn’t reserved just for premium price tags.”
Cannabis enthusiasts with the resources to smoke top-shelf weed exclusively might deride value offerings as mids and politely (or otherwise) decline to partake. But for those on a tight budget who are regular users, value-priced brands can be a financial lifesaver.
Why Are Weed Prices Dropping?
There are many reasons for the drop in cannabis prices seen in many markets. The lowest prices are generally found in states that legalized recreational pot the earliest, following a trend seen in most industries as new markets mature. Overproduction also puts downward pressure on prices, leading to buyers’ markets like we’re seeing in Oregon.
The unregulated market puts further downward price pressure on cannabis from licensed suppliers. Unlicensed growers aren’t subject to the costs faced by regulated businesses, including licensing fees and high taxes. Sean Kiernan, the CEO of Weed for Warriors, a California group that works to ensure access to medical marijuana for military veterans, notes that taxes put weed from licensed sources out of reach for many patients and consumers. As a result, even with falling prices at dispensaries, they turn to the unregulated suppliers who still offer a better price.
“The industry has been in a competitive race with the illicit market while swimming upstream against extreme tax rates and overregulation,” Kiernan says in a written interview. “For example, in California, we just had the excise tax increased by over 25%, while Los Angeles, the largest cannabis market in the country, just approved a steep rise in fees for licensed cannabis operators.”
And with taxes factored in, licensed dispensaries simply cannot compete with unregulated businesses on price.
“In theory, the price declines in the legal market make legal cannabis more affordable, allowing regular users, particularly those who rely on it for medical purposes, access to the benefits of the legal market,” Kiernan says. “However, the illicit market has seen steep declines in price, also. So, relative to the legal market, it is still considerably cheaper.”
Will Budget Weed Be the Death of Quality?
While budget-conscious brands benefit consumers’ wallets, many cannabis advocates will note that the number on the price tag isn’t the only important factor when it comes to weed.
Genine Coleman, executive director of Origins Council, a group that advocates for small cultivators, says that declining cannabis prices threaten the viability of independent growers. Small farmers just can’t compete with weed megafarms in terms of production costs.
The challenges of falling prices have caused many small farmers to go out of business. Losing small farmers means losing part of our culture of knowledge and, in many cases, the disappearance of novel strains.
Price pressure on small businesses has also led to a trend of consolidation in the regulated industry as companies merge to stay afloat. This consolidation has resulted in a diminished diversity of cannabis genetics that Coleman says has been confirmed by lab analysis. As diversity decreases, the wide range of effects and benefits that the plant is known for is put at risk.
“That is not a benefit to consumers,” she says in a virtual interview. “They’re having a hard time finding what they used to find, particularly in the medical market. That’s also true, not just of genetics, but of products. So we’re seeing a narrowing of access, and this is particularly of impact to patients and connoisseurs who are really looking for high-end product.”
Coleman also notes that as cultivators cut costs and grow their product at scale, quality can suffer. And when consumers can’t get the caliber of weed at a price they want to pay from regulated sources, there’s always an unlicensed grower ready to step in and fill the bill.
“We’re also seeing the quality of products becoming more of a commodity-grade product,” Coleman says. “And so, while there is some benefit to being able to access cheaper products, it’s not necessarily the product you really want or need, right? And so that’s, of course, then directing folks back in the illicit market.”
How Will Falling Prices Play Out?
The long-term ramifications of dropping weed prices are yet to be seen. Will the quality of cannabis suffer industrywide, or will small, independent growers be able to hold the line and continue providing top-shelf smoke?
Time will tell, but in the meantime, it’s nice to be able to get a half-zip of weed for under $50 again. Now, if we can only get those insane taxes down.
Photo by Saad Chaudhry on Unsplash
The post Falling Cannabis Prices Are A Boon For Consumers first appeared on High Times.