Massachusetts cannabis businesses are facing significant challenges as the price of marijuana continues to drop. Nike John, who runs The Heritage Club dispensary in Charlestown, expressed her concerns, stating that the plummeting prices are “bleeding value” from her inventory of products like chocolate, taffy, and vapes. She described the situation as feeling like the bottom is “being ripped out from under you” and admitted that if she had known the difficulties of the industry, she would not have entered it.
Despite the state’s Cannabis Control Commission reporting record-breaking marijuana sales of $1.64 billion in 2024, individual businesses are feeling the pressure. The commission claims these figures indicate a “robust and thriving market,” but many in the industry disagree. The price of marijuana has dropped by 62% since November 2018, falling from $14.09 per gram to just $5.36 last year. Ryan Dominguez, the executive director of the Massachusetts Cannabis Coalition, noted that while sales numbers may seem promising, they do not reflect the reality facing many operators.
Several factors are contributing to the decline in marijuana prices. The Cannabis Control Commission has issued more licenses to cultivators, resulting in an oversupply of legal marijuana in the market. Dominguez referred to this situation as a “simple supply and demand problem.” Additionally, the legalization of cannabis in neighboring states like Connecticut and New York has reduced the number of out-of-state customers coming to Massachusetts. Furthermore, the state’s daily purchase limit of one ounce per customer is keeping demand lower, compounding the issues for retailers.
The impact of these challenges is evident, with some businesses closing their doors after only a few years. Data from the Cannabis Control Commission indicates that 30 licensed marijuana businesses ceased operations last year, nearly double the number from the previous year. Currently, there are 650 licensed businesses operating in Massachusetts.
Ed DeSousa, who previously grew marijuana at RiverRun Gardens in Newburyport, shared his struggles in the industry. He founded his business in 2017, driven by a passion for “craft” cannabis, but found it increasingly difficult to compete with larger multi-state operators. DeSousa faced issues with retailers not paying for their orders and limited legal options to recover debts. He ultimately decided to close his business earlier this year, stating, “With prices going down, stores haggling with us on the price, supply going up, rents going up, it was just, there was no way to do it.”
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