Massachusetts legalized cannabis sales have surpassed $6 billion since 2018. However, signs indicate a slower rate of growth as well as steeper price decreases in this maturing market.
According to a recent report by the Massachusetts Cannabis Control Commission, the cost of cannabis for adults has dropped 62% from November 2018 when the adult-use market was first opened. This is based on the fact that the retail price per gram fell from $14.09 (in November) “from the start and implementation” of Massachusetts adult-use pot retailers in Massachusetts in order to reach $5.36 ($5.36/gram in April 2024).
As the Commonwealth’s market becomes saturated, some decreases should be expected. “We know that,” Dr. Julie Johnson said, during the presentation of findings Tuesday at a meeting of the public. As the cost of cannabis drops, more adult cannabis consumers, including light users, may enter the Massachusetts market.
Johnson warns that competition in the region threatens to undermine future growth.
As more East Coast state legalize cannabis for adult use, Massachusetts could see a decline in sales as consumers from other states may not need to go across the border to buy marijuana specifically from Massachusetts.
This report revealed uneven competition in the entire state. Western counties are the most congested, Berkshire County has 18.9 stores for every 100,000 residents while Hampshire County shows 16.6. Eastern counties have fewer shops, as Norfolk County has just 1.4 and Middlesex has 3.7 stores per 100,000 people. Average statewide is 5.1 retail stores per 100,000 residents.
Sales continue to increase, but the rate of growth has slowed down dramatically. Sales increased 537% between 2018 and 2019, but only 5% in 2022-2023. Then, they grew a little to 7% from 2023-2024.
Flower continues to be the top seller in Massachusetts. This product accounts for 42.2% (of all sales) of products intended for adult use. Pre-rolls (15%) and edibles or beverages (14.7%) were also very popular.
For the first time, this year’s report on annual cannabis sales includes a new market segment. Medical sales have totalled $1.3 billion since November 2018. Flower accounted for nearly 46% of all transactions. Medical sales are down since 2021, but not as much as the adult market.
“I quickly ran the math because the 2024 numbers were just through April…and that would put another decrease,” Commissioner Kimberly Roy said. If we keep on track, the $225 million would drop to $199.
Approximately 100,000 medical cannabis patients are registered in the state, and mental and behavioral disorders account for about 53% of diagnoses. Today, the commission will hold a public hearing on the Medical Use of Marijuana Program to collect feedback regarding potential policy changes that could increase access to this program.
According to the report, there has been a significant increase in diversity among industry employees since 2018. In the period between 2019-2023, female employee representation increased from 15% to 35%, and in senior positions, from 17% up to 35%.
The racial composition of the workforce has also increased, as Black employees in general positions went from 3,8% to 8,9%. Hispanic/Latino representatives went from 7,1% to 11,5%. Black employee numbers increased at senior level from 3.3% up to 7.4%, and Hispanic/Latino from 3.3% up to 4.9%.
Massachusetts’ cannabis sector recently reached several milestones. This includes $1.64 billion of sales in 2024 as well as the 700th Business Operations Notice in September.