Retail Cannabis Prices Falling in New York as Market Matures

The average price for 3.5 grams of cannabis at New York dispensaries has
fallen slightly since the launch of legal sales from $41.13 at the launch
of the program in 2022 to $38.96, the New York Post reports. One gram of
concentrate decreased from $58.92 to $50.30 and one-gram vape products from
$64.89 to $55.35, according to an Office of Cannabis Management (OCM)
analysis outlined by the Post.

John Kagia, OCM’s executive director of market policy, innovation, and
analytics, told the Post that New York’s market has over 500 brands with
about 370 shops open.

“Retailers are adjusting their prices as part of their competitive strategy
as more locations have opened. While it remains a little early to determine
all the factors driving the retail price compression, it is common to see
price compression as new markets mature and competition intensifies.” —
Kagia to the Post

Kagia added that “Lower prices indicate a growing diversity of products
available in the market.”

“They increase affordability for consumers,” he told the Post, “and they
enable the legal market to compete more effectively against the illicit
market.”

Last August, sales revenues per dispensary reached $599,000, according to
state data, but in February per store revenues dropped to $351,000. Sales
in the state have totaled $1.46 billion since the launch of the adult-use
market and are on pace to reach $1.5 billion this year alone, according to
OCM data.