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Strong demand drives up Oregon’s wholesale cannabis prices in 2020

2021-01-19

Increased consumer demand for cannabis in Oregon helped push wholesale prices in the state out of a three-year slump caused by overproduction.



For the first time since 2017, the median price per pound of recreational marijuana sold by cultivators to retailers topped $1,500 in December, according to data provided by the Oregon Liquor Control Commission.

Prices also rebounded for cannabis sold to wholesale businesses.
The rising prices are just another sign of Oregon’s booming marijuana market.

Recreational marijuana sales in the state grew 38% in 2020, ending the year at a record $1 billion.

The state experienced year-over-year growth in every month of 2020, indicating that the coronavirus pandemic and resulting recession didn’t negatively affect overall demand.

In fact, the pandemic might have helped sales as consumers turned to cannabis for stress relief.

Average monthly recreational sales last year reached $83.4 million versus $60.5 million in 2019.

The adult-use market peaked in July with a record $94.3 million in sales, a 43% increase for the same month in 2019.

While Oregon’s medical marijuana market doesn’t come close in size to its recreational side, MMJ sales grew a whopping 58% in 2020, to a record $109 million.

For comparison, the medical market grew only 8.4% from 2018 to 2019.

With the combined markets bringing in $1.11 billion in sales in 2020, it’s hard to say whether this demand will continue once the pandemic begins to recede and the economy rebounds.

 
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