Massachusetts is witnessing a significant decline in cannabis prices as supply reaches an all-time high. Doug Leighton, co-owner of ACK Natural, believes that the rapid expansion of the cannabis market in the state should come to a halt. He remarked, “No one in their right mind should ever open a new dispensary in Massachusetts. There’s way too many now.” Leighton is also the largest outside investor in Bask Cannabis Dispensary located in Fairhaven.
Over the past four years, cannabis prices in Massachusetts have fallen dramatically, with retail prices dropping by more than two-thirds. For instance, an eighth of an ounce of cannabis that averaged around $50 in early 2021 now costs nearly $15, according to state data. However, the price reductions are not as pronounced on Nantucket Island.
At local dispensaries such as The Green Lady and ACK Natural, the price for an eighth of an ounce varies between $35 and $60, depending on the strain, with additional tax applied for recreational customers. Medical customers are exempt from this tax. Leighton noted that ACK Natural has reduced prices for their cheapest products by 30 to 40 percent since 2022.
While consumers may welcome these lower prices in a challenging national economy, the steep decline has negatively impacted many cannabis growers and sellers. Some business owners are facing severe financial challenges, while others fear losing their livelihoods. Although it’s difficult to pinpoint the exact number of closed cannabis businesses, state officials report that over 50 licenses have been surrendered since the market’s inception.
Many entrepreneurs invested substantial amounts, sometimes millions of dollars, into cannabis ventures after the state’s legalization of marijuana in 2016, anticipating that high prices would help them profit. Unfortunately, many now find themselves struggling in a highly competitive environment marked by plummeting prices.
