Monday January 22, 2018
The Beaver State is well on its way to becoming a cannabis powerhouse. With their cannabis industry becoming more and more developed every day, Oregon is a great spot to immerse into marijuana culture and everything that comes with it.
To help you gain a better understanding of the cannabis market in Oregon, we’ve teamed up once again with our friends at BDS Analytics to provide you the latest point of sale data. BDS Analytics is an industry-leader in cannabis data and expertly aggregate information from dispensaries across the state.
Without further ado, let’s get to it!
Marijuana Prices in Oregon: Fall 2017
From January 2015 to October 2017, Oregon’s cannabis dispensaries have generated slightly over $1 billion in sales. 59 percent of these sales came directly from flower/bud, with revenues of $594 million from the category. In 2017, flower’s dominance started to slowly decline as the regulatory environment for cannabis stabilized in Oregon and other product categories enjoyed uninterrupted growth. While flower sales remain dominant in Oregon, flower contributed just 51 percent of sales year-to-date, as growth in other categories including concentrates, edibles and topicals all outpaced flower.
In October of 2017, the average price for a gram of flower in Oregon’s adult-use market was $7.97 (pre-tax), 10 percent lower than in January of the same year. Over the same time frame, monthly sales from the category grew 11 percent. Compared to the previous October, the price had declined 19 percent, but monthly sales have only increased eight percent. Declines in pricing tend to drive sales growth in a market with strong demand, but the rate of decline in flower pricing in Oregon has not been enough to drive significant increases in sales.
Flower prices in Oregon remain significantly higher than in other states including Colorado and, more importantly, Washington. In September of 2017, the average gram of flower was 35 percent more expensive at adult-use retailers in Oregon than in Washington on a pre-tax basis. Interestingly, while flower contributes 51 percent of revenues in OR, the category is significantly stronger in Washington where flower sales contribute over 55 percent of revenues.
In the battle for quality vs. quantity, the top 10 strains for 2017 skew towards quality, which could ring true if more value-conscious consumers are potentially shopping across the river in Washington. Most of top 10 selling strains fall above the average retail selling price for the category.