Saturday October 21, 2017
Washington's recreational cannabis market is one of our favorites to cover because it is completely unique from other states. The ups and downs of pricing trends have certainly been fun to follow, which is why we're happy to bring you yet another installation of Washington marijuana flower point-of-sale data. Of course, we could not compile these reports without the help of the expert team over at BDS Analytics. They aggregate information from dispensaries across the state to bring the most accurate pricing data to consumers.
Washington Flower Pricing Analysis
Between July 2014 when recreational cannabis sales started in Washington state, and June of 2017, dispensaries have sold $1.54 billion of cannabis products. Sixty-one percent of revenues ($944 million) were derived specifically from the sale of flower/bud, not including the flower used in pre-rolled joints which are tracked as a separate category.
Unlike Colorado and Oregon that retained medical dispensaries operating alongside recreational establishments, Washington opted to blaze its own path and to go with what is essentially a recreational-only market in which the same purchase limits and taxes apply to all customers/patients. In 2017, compared to recreational markets in other states, Washington demonstrated the lowest average retail prices for flower with the average (pre-tax) price for a gram going for just $5.79.
In the Summer of 2014, average flower prices in Washington spiked to nearly $25 per gram (pre-tax) as supply constrains met heavy demand. Since the early days in Washington, flower prices on average have declined 3.8 percent each month. Between January and June of 2017, prices have declined 7.1 percent but a potential glimpse of change is emerging. In the most recent three months ending June of 2017, prices stabilized.
Unlike other states where most flower sales occur near the category average price, Washington has a long tail of less price points that contribute significantly to the mix of sales.
The lack of a vertically integrated market is a significant dynamic in Washington. Not only are flower prices low, but retailers tend to carry more varieties of flower than seen in other states. Despite the differences, the top 10 selling strains contain many of the same favorites as in other states. In Washington, the top 10 selling strains contributed 14 percent of sales across all flower strains in 2017. Interestingly, the top 10 selling strains, like all strains combined, came in at the same average retail selling price of $5.79 per gram (pre-tax) for 2017.
Be sure to check back quarterly for more marijuana pricing trends and information!