Massachusetts Cannabis Businesses Struggle Despite Falling prices – MEDCAN24

Cannabis prices in Massachusetts have fallen dramatically, putting the industry under significant financial pressure. Retail prices in Massachusetts have dropped 62% since November 2018 from $14.09 to $5.36 a gram. 

Prices Decline: Factors that Contribute to the Price Drop

This downturn is the result of several factors:

• Increased cultivation licensesAs a result of the Cannabis Control Commission’s decision to approve more growers, there is now an excess supply which has pushed prices lower. 

• Legalization in Neighboring StateAs states such as Connecticut and New York have legalized cannabis, customers from other states are less likely to travel to Massachusetts. This reduces demand. 

• Purchase LimitsSales volume is affected by the state’s daily limit per customer of an ounce. 

The Impact of the Business Environment

Many operators are now in financial trouble due to the price decline. The number of licensed marijuana businesses that ceased operation in 2024 has doubled from the year before. Around 650 cannabis-related businesses are licensed in California. 

Leaders in the sector suggest that the stabilization of the market can be achieved by increasing purchase limits or pausing new licenses. Opinions differ, however, on the best intervention strategy. Robin Goldstein of the Cannabis Economics Group of the University of California Davis views the lower prices of cannabis as an indication of a mature and competitive market that is capable of outcompeting the illicit market.