Thursday January 18, 2018
Recreational cannabis sales are officially
underway in California, leaving everyone wondering just how big their cannabis industry will grow. Be sure to check back next quarter for our first pricing report including recreational sales. In the meantime, check out the latest pricing information from the fall of 2017.
Of course, we couldn’t bring you this information without the help of the experts over at BDS Analytics, who aggregate point of sale information from dispensaries across the state.
Let's take a closer look into the details.
Marijuana Prices in California: Fall 2017
In March of 2017, BDS Analytics began tracking and reporting dispensary sales trends for California’s cannabis industry. Between March and October of 2017, total sales through dispensary and delivery services across the most populous state in the country reached $1.856 billion. Flower contributed to 53 percent of revenues in the state with total sales for the category reaching $989 million. This does not include flower going into pre-rolled joints, as those sales are tracked separately.
Between March and October, the proportion of sales coming from flower vs. other product categories shifted quickly, as more brands flooded the market in anticipation of recreational sales starting in January 2018. Like Colorado, California will likely see flower’s contribution to total revenue dip below 50 percent in 2018.
In October 2017, the average price for a gram of flower in California dispensaries was $9.09, six percent lower than the peak price of $9.68 in March. Between March and May, prices declined before temporarily increasing in June and July. Heading into late summer and early fall, sales began a multi-month slide.
Though the top 10 selling strains include some higher priced varieties, the top five sellers skew below the category average in terms of price. Some of the top selling strains in California can be found on top 10 lists in other states (Blue Dream, Sour Diesel, Gorilla Glue # 4, Girl Scout Cookies), while others are unique to the California market.
In October, at the height of the outdoor harvest, fires spread throughout much of California, particularly hitting the Northern part of the state. While much speculation was placed on the impact fires would have on the supply chain, it can take months for products to move from the fields to dispensary shelves. Look to coming pricing reports to gain a better gauge of the disruption to the supply chain caused by California fires as well as the impact of the new recreational market.